Money blog: Major supermarkets see values plummet after Asda reveals new strategy - prompting price war speculation (2025)

BySarah Taaffe-Maguire, business and economics reporter

As the dollar continued to fall, the pound kept on rising, briefly hitting a more than four-monthhigh at points this morning.

At about 8.30am and 10am, £1 bought $1.30, a high last seen on the election of Donald Trump on 5 November.

A weaker dollar shows reduced confidence in the US economy as tariff fears became a reality, rather than being used as a mere bargaining tool with trade partners.

The new rate means consumers using the pound can buy dollar-priced goods more cheaply than in recent weeks and months.

It's good news for anyone going on holiday to America, though the $1.30 exchange is far below the $1.34 seen in September.

Manchester United fans have expressed outrage and disappointment after the club increased the price of most season tickets by 5%.

The club said the hike - from which under-16s were exempt - was necessary to stay financially stable, but it has been branded "ridiculous" and "greedy" by some fans.

Season ticket holders will pay an extra £2.50 per game on average.

"For several months we have argued long and hard that the club need to look at the big picture and freeze ticket prices for next season," said The Manchester United Supporters Trust.

"Other clubs have done that already and at United it would have sent a powerful message about the need for everyone to pull together to get the club out of the very difficult position it finds itself in."

Its the third year in a row in which season ticket prices have risen.

Fans on social media have been protesting the decision, with one calling Manchester United a "greedy club".

Another wrote on X: "Our owners spoke about the importance of fan engagement, then announced these ridiculous ticket increases after zero consultation. Utterly despicable."

But some more readily accepted the price rise, with one X user writing: "Not as bad as I was expecting to be fair."

Omar Berrada, chief executive of Manchester United, said: "We appreciate the loyal and patient support of our fans, and particularly our season ticket holders who represent the core of our match-going support base.

"We understand the importance of their backing for the team and have worked hard to come up with a pricing package that is fair and reasonable."

By Sarah Taaffe-Maguire, business and economics reporter

For the first time ever, VR headsets are being used in the official calculation of price rises.

It comes as spending on the tech has grown and is expected to continue growing.

A basket of more than 700 goods is used by the Office for National Statistics (ONS) to calculate the inflation rate. Each year the list is refreshed to reflect changing buying habits and ensure the figure is accurate.

It means that what's in and what's out can tell us about purchasing trends.

Oven-ready gammon joints are out while pulled pork is in, highlighting the move to convenience foods.

Increased home fitness gear spending is apparent with the addition of yoga mats to the basket, while men's sliders or pool sandals show changes in the footwear market.

As the move to online news consumption continues apace, local newspaper adverts have also been removed.

The government says it will freeze thousands ofgovernment issued credit cards accounting for hundreds ofmillions of pounds this week.

Almost all of around 20,000 procurement cards will be frozen after spending on government cards rose from £155m in 2020-21 to £675m in 2024-25, the Cabinet Office said.

It wants to cut the number of cards by at least 50%, with frozen ones only reallocated to those who can justify a need for them.

"It's not right that hundreds of millions of pounds are spent on government credit cards each year without high levels of scrutiny or challenge," Cabinet Office minister Pat McFadden said.

"Only officials for whom it is absolutely essential should have a card."

A minority of staff, including diplomats working in crisis areas, will be spared.

Bloomberg reports new limits will be introduced, with any spend over £500 requiring senior approval.

BySarah Taaffe-Maguire, business and economics reporter

Major supermarkets have been rattled by a new strategy announced by rival Asda last week.

The grocery chain said it would take a hit to profits to make prices cheaper and entice shoppers back through the doors.

As we reported in Money, the supermarket announced a 4p cut in its fuel prices.

Asda appears keen to fight back against its lost market share - but it has sparked investor fears of a price war among the major grocers.

Asda is privately owned, so we can't see the impact of the announcement on its own share price, but M&S, Sainsbury's and Tesco are all listed on the London Stock Exchange so their stock activity is public.

As of yesterday, more than £4bn had been wiped off the combined values of M&S, Sainsbury's and Tesco since the Friday Asda announcement.

While all three supermarket share prices were up this morning, they were far below the Friday afternoon level: M&S lost 7.7%, Sainsbury dropped 7% and Tesco shed a massive 12%.

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By Becky Johnson, social affairs correspondent

On a hilltop above Ashfield, a sculpture of a miner watches over the local towns.

In a part of Nottinghamshire with a proud mining heritage, almost a third of working-age people are now economically inactive.

It's places like this where they're bracing forthe impact of welfare reform.

A group of young people meet here in a local park. They're among the UK's almost a million so-called NEETS - people aged 16-24 not in employment, education or training.

I chat to them in my video report from the town...

By Beth Rigby, political editor

Those with "milder mental health" issues and "lower-level physical conditions" could see their disability benefits cut, as the government looks to shave £6bn off the welfare bill.

Liz Kendall, the work and pensions secretary,is expected to target sickness and disability benefit payments for savings today, which comes ahead of the spring statement next Wednesday.

Her welfare reform green paper will arrive after Downing Street insisted there is a "moral and an economic case for fixing our broken system".

Government figures argue the rising sickness and disability bill, which has ballooned since the pandemic, is unsustainable and will "leave the welfare state losing legitimacy" in the eyes of the wider public if not dealt with.

What changes should we expect?

Ms Kendall is expected to target personal independence payments (PIP) - one of the main forms of disability benefits for those with long-term illnesses or disabilities - amid a spike in claimants.

The PIP bill has grown from £13.7bn a year before the pandemic to £21.8bn in the current financial year, and is set to increase to £34.1bn by the end of the decade.

The number of people claiming this disability benefit is projected to more than double from two million to 4.3 million.

The work and pensions secretary will tell MPs that Labour will protect those who have a serious condition and can't work, andthe government's rowed back from plans to freeze PIP payments after backlash from its backbench MPs.

These payments are now expected to rise in line with inflation, but the eligibility criteria will be tightened to whittle back the number of people eligible to claim.

One government figure told me it would result in some conditions - such as "milder mental health" or "lower-level physical conditions" - being ineligible for PIP.

But they stressed that those with more severe conditions and who are never going to be able to work would be protected and cared for.

Rigby goes on to explain that these cuts could be just the start. Read her full piece here...

Every Tuesday we get an expert to answer your Money Problems. You canWhatsApp us yourshereor email us atmoneyblog@sky.uk

Today we are tackling this issue sent to us by Patrick...

My Deliveroo arrived with the main item wrong. They wouldn't issue a replacement and would only give me credit or a refund. Even with credit, to replace it would cost me delivery fees of £2.99, a £0.50 service fee and a small order service fee. Is it legal to refuse to replace? What are my rights when a takeaway arrives wrong?

We asked consumer expert Scott Dixon from The Complaints Resolverto tackle this one.

He says issues with takeaway deliveries had soared since the creation of delivery apps, with companies able to fob customers off with a range of excuses.

"Common problems I see are delays resulting in food being cold and inedible, spilt coffee over food, orders never arriving or being delivered to the wrong address, wrong orders, missing items and refunds being refused in line with the food delivery platform's policy after investigation," he explains.

"Consumers often don't realise the order they have accepted was wrong until it's too late and the delivery driver has left. Orders are often delivered in sealed bags so it's impossible to check the items before a driver leaves, with delivery companies giving small credits which are a fraction of the food and delivery costs."

When these issues occur, Dixon says, customers often find themselves caught in the crosshairs between the delivery company and the takeaway provider.

What are you entitled to?

Under the Consumer Rights Act 2015, goods ought to arrive as described and if the food you have received is not what you ordered or items are missing, this is considered a breach of contract and you are entitled to a remedy.

Dixon says that in this particular case, you would be entitled to ask for a replacement and the outlet should offer it, without charging you any fees.

However, the offer of a credit or refund would be considered a fair and reasonable remedy.

But charging you delivery fees, service fees or an order fee could be considered as a breach of contract under the Consumer Rights Act 2015, according to Dixon.

So, what should you do?

To start, Dixon says you should contact the delivery company via the app that the takeaway has a contract with - so Deliveroo in this case.

"If you have a problem with your takeaway order, you need to contact the delivery food company and takeaway as soon as possible to give them an opportunity to put things right and explain what has happened," he says, stressing that being nice is more likely to get you a quick outcome.

"Proof is key in these disputes, so gather your evidence. You need the date and time you placed the order, receipt, time it arrived, screenshots and photos to prove your case.

"If you ring to complain, note the time you called, who you spoke to, what was promised and put it in writing to confirm what was discussed to create a paper trail if you need to escalate your complaint."

If your request has been denied, what happens next?

If you are denied a replacement or a credit for missing items and cannot resolve a dispute, Dixon said you should escalate the complaint and stress there has been a "breach of contract" under the Consumer Rights Act 2015.

With takeaways, you're not talking about the kind of money that would make going to the small claims court worthwhile, and the best way to get your money back would be via chargeback.

"It's worth saying that if you are unwilling or unable to put things right, you will contact your bank or credit card provider and raise a chargeback to dispute the transaction," he adds.

"You need to push hard on chargebacks citing 'breach of contract' as they are often rejected on the first attempt.

"Chargebacks are problematic and costly for retailers, so even mentioning it will often elicit a swift outcome to close your dispute."

This featureis not intended as financial advice - the aim is to give an overview of the things you should think about.Submit your dilemma or consumer dispute via:

• WhatsApp ushere
• Email moneyblog@sky.uk with the subject line "Money Problem"

Sir Keir Starmer is gearing up to sell further tough choices to his MPs as he lays the ground for big changes to the UK's welfare system.

The prime minister's motivation is the cost of long-term sickness and disability benefits for working age people, which has risen by £20bn since the pandemic and is forecast to hit £70bn over the next five years.

Ministers have stressed there are currently 2.8 million people not in work due to ill-health, while one in eight young people are not in education, training or employment - prompting fears of a "wasted generation".

The prime minister's argument is that this must all change if the government is to grow the economy, pay for improvements to public services and increase defence spending, as was announced last week.

However, disability charities have warned against draconian cuts to welfare, with Scope warning that 700,000 more disabled households could be pushed into poverty if one type of benefit - personal independence payments - is cut.

Sky News takes a look at what changes could be coming down the track - and what impact they may have...