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UK credit card severe delinquency rises, FICO says

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SOFIAH NICHOLE SALIVIO

News Editor

FICO reported a rise in severe UK credit card delinquency in its latest market data for May, despite a post-Easter fall in spending and a rise in repayment rates.

Its analysis found that the share of accounts with three missed payments rose 17.1% from a year earlier, pointing to deeper stress among borrowers already in difficulty. At the same time, spending and repayments followed a pattern often seen after Easter, with card use easing after a seasonal peak.

Average spending on UK credit cards fell 3.0% month on month to £790. Compared with a year earlier, spending was broadly unchanged, marking a shift from the declines seen through much of 2025.

Active balances also edged lower in May, slipping 0.3% from the previous month to £1,945. Even so, they remained 4.3% above a year earlier, indicating that debt levels across card portfolios are still elevated.

The proportion of overall balances repaid increased 4.7% from the previous month. However, at 34.1%, the repayment rate was still 4.1% lower than the level recorded in 2025.

Mixed arrears

The arrears picture was uneven across different stages of missed payments. May brought an improvement in accounts with two missed payments, but that was offset by continued deterioration in accounts with one and three missed payments.

All three delinquency categories remained above the levels seen a year earlier. Both the number of accounts and the balances attached to them were higher than in May 2025 for customers with one, two and three missed payments.

Overlimit accounts, which had risen sharply in April, fell back in May. They declined 5.7% on the month to 1.3%, although that figure was still 1.6% higher than a year earlier.

FICO’s analysis also suggested that average delinquent balances were not rising as quickly as balances across the wider card market. Accounts with one missed payment recorded a 0.5% year-on-year increase in average balance, accounts with two missed payments were broadly flat, and accounts with three missed payments showed a 3.1% fall.

That suggests customers in the most severe delinquency group held proportionally lower balances than the overall portfolio did a year ago. Even so, the rise in the number of customers reaching three missed payments points to growing financial strain among more vulnerable borrowers.

Seasonal pattern

The May figures followed what FICO described as a typical post-Easter shift in card activity. Spending fell after the holiday period, while payment rates rose as customers worked through balances built up earlier in the spring.

That seasonal easing did not remove broader pressure in the market. Balances have stayed structurally high through 2025 and into 2026, even when monthly movements have been modest.

FICO also warned that spending could pick up again over the summer, partly because of higher fuel prices. That may increase pressure on households already struggling to keep up with card repayments.

Issuer coverage

The figures form part of the data available through FICO’s Benchmark Reporting Service. The sample is drawn from client reports produced by the FICO TRIAD Customer Manager system, used by about 80% of UK card issuers.

The breadth of that sample gives the data weight as an indicator of conditions across the market, particularly at a time when lenders are watching for signs that consumer finances are weakening after a long period of high living costs and elevated borrowing.

In its commentary, FICO urged lenders to pay close attention to borrowers before they slip further into arrears. “However, with the significant year-on-year increase in accounts with three missed payments, and the likelihood of increased spending over the summer months, risk teams should maintain heightened monitoring of delinquency progression and ensure that pre-delinquency intervention strategies are designed to address the higher balance levels now characteristic of customers in financial difficulty,” FICO said.



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Network Rail will not reopen Botley Road early despite completion

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Gas network company SGN confirmed it had repaired three minor gas leaks and left the site on Monday, August 3, six days earlier than expected.

The leaks were discovered during excavation works last month and contributed to the pushing back of the road’s reopening date, yet again, to September 20.

The completion of the gas mains replacement marked a significant step forward in the wider Oxford Station improvement project, which was originally budgeted at £161 million but is now expected to cost at least £237 million.

The development prompted hopes that Botley Road, closed beneath the rail bridge since April 2023, could reopen earlier than planned.

However, Network Rail has moved to manage expectations, saying the project remains on course to meet its existing target date rather than finish ahead of schedule.

A Network Rail spokesperson said: “We’re pleased that SGN has completed its gas mains replacement work.

“While this is an important milestone, it doesn’t necessarily mean the overall project will finish early as some remaining work is dependent on access to the railway, which we have had to rearrange to enable the replacement of the gas main.

“Our focus remains on meeting our planned deadline of 20 September for reopening Botley Road to traffic.”

While the completion of the gas works removes one of the most recent obstacles facing the scheme, Network Rail says further work under the bridge and around the station is still needed before the route can reopen to traffic.





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40-year-old Oxfordshire gymnastics club at risk of closure due to heat

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The club is currently struggling in the summer heat, and has launched a new fundraiser to keep its gymnasts safe.

The club, which is based at Grove House Barn near Warkworth in Banbury, launched the fundraiser so it could buy and install four air conditioning units to keep its space cool.

Currently, the club hopes to raise £7,000 through the appeal so it can buy four 10kW air conditioning units and cover all the installation costs.

So far, the club has raised £380.

Karl Wade, director of Wade Gymnastics, said the club has become “increasingly warm” during the summer months due to the rising temperatures.

READ MORE: Thames Water leakage targets are ‘not realistic’ says boss after pay rise

Wade Gymnastics at Grove House Barn in BanburyWade Gymnastics at Grove House Barn in Banbury (Image: Google Maps)

“Despite our best efforts to keep doorways and shutters open, it becomes very uncomfortable for gymnasts to play and train,” Mr Wade said.

He added: “The safety of our gymnasts and coaches is always our utmost priority.

“Unfortunately, the risk of having to close the business during these hot spells is increasing and we need to have more effective ways of keeping everyone cool.

“An air conditioning system would allow the business to stay open during those extreme hot conditions and continue to provide classes for everyone who attends.”

The gym currently delivers classes seven days a week for around 900 people, which range from toddlers to athletes competing at national level.

The gym club was founded more than four decades ago by Ruth Wade and, for the past 20 years it has been based at its current facility.





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Solihull Council appoints ICS.AI for AI discovery phase

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SOFIAH NICHOLE SALIVIO

News Editor

Solihull Council has appointed ICS.AI to deliver the first phase of an AI Transformation Discovery programme to examine how artificial intelligence could be used across several resident-facing services.

The 24-week programme will review opportunities in Adult Social Care, Children’s Services, Economy & Infrastructure, and Public Health. It is intended to help the council decide where AI could be used and where future spending should be directed.

In this first phase, ICS.AI will assess the council’s readiness for AI and identify use cases across the four service areas. The programme is expected to produce a prioritised shortlist of about 200 use cases, including 50 validated from a finance perspective, alongside a longer-term AI Transformation Roadmap.

The work is intended to create an evidence base before any wider implementation decisions are taken. Ethics, privacy, and safeguarding will be considered throughout the assessment process.

Discovery phase

ICS.AI will use its AI Target Operating Model framework to review Solihull’s current position across five dimensions before ranking opportunities. The outputs will be based on council-owned baseline data and reviewed by public sector specialists.

The approach reflects a broader pattern among local authorities exploring AI in service delivery while facing pressure to justify spending and manage risks around data use and public accountability. Councils have also been seeking clearer business cases before committing to larger technology programmes.

Solihull said the discovery exercise would support a measured approach to service modernisation. The authority wants to identify where AI could improve services for residents while also demonstrating value for money.

“We are committed to taking a well-considered and planned approach to modernising the services we provide. By building a strong evidence base for future decisions, this programme will help us understand where the greatest AI opportunities exist. We will then be able to prioritise those improvements that will deliver the greatest benefit for residents, while ensuring full value for the council,” said Councillor Dave Pinwell, Cabinet Portfolio Holder for Resources, Solihull Council.

Public sector focus

ICS.AI said the Solihull engagement builds on work it has carried out with more than 20 public sector organisations using its AI transformation and discovery assessments. Those organisations include Derby City Council.

The company focuses on AI projects for the public sector, where interest has increased as authorities look for ways to manage demand pressures in social care, public health, and other frontline services. At the same time, councils are under scrutiny to show that new technology investments are proportionate and supported by practical evidence.

Dwayne Johnson, Chief Local Government Officer at ICS.AI, said local authorities need stronger justification before committing funds. “Local authorities need confidence that every investment is backed by robust evidence and long-term value for residents. Solihull Council is taking the right approach by starting with a structured discovery programme that builds a clear understanding of priorities before decisions are made. By developing finance-validated business cases and a practical roadmap, the council can be more proactive in the decisions it makes,” he said.

The programme’s initial outputs are expected to give Solihull a ranked view of where AI could be applied across services, the level of organisational readiness, and which projects may warrant further consideration. This first phase is focused on identifying options rather than moving directly into deployment.

For local government leaders, that distinction is becoming increasingly important as councils test AI in areas that affect vulnerable residents and essential public services. In Solihull’s case, the work spans some of the authority’s most visible functions, including care services, children’s provision, public health activity, and parts of local infrastructure planning.

The council aims to use the findings to inform later investment decisions through finance-validated business cases and a practical roadmap for future priorities.



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