Supporting families with cost of living is ‘key focus’ of Scottish Government, says Swinney

Supporting families with the cost of living and eradicating child poverty will be a key focus of the Scottish Government, First Minister John Swinney has said. 

Ahead of a visit to meet parents and children at a Bookbug session in Wester Hailes the First Minister said tackling the cost of living, ensuring people get support before reaching a crisis, and helping children and parents in the early years will be key priorities for the new Cabinet. 

In March, the Scottish Government set out plans to drive further reductions in child poverty. This includes committing an additional £500,000 over two years to expand Bookbug, supporting a further 20,000 low-income families across Scotland.  

Mr Swinney said: “Every child in Scotland deserves a future free from the scourge of poverty. It will be the defining mission of my government to support families with the cost of living and eradicate child poverty.

“Our policies are already helping to keep an estimated 100,000 children out of relative poverty this year – but we are determined to deliver truly ambitious change to reduce the cost of living.  

“This includes expanding all year round childcare to all children from nine-months to the end of primary school, introducing a £2 nationwide cap on bus fares, increasing the Scottish Child Payment to £40 for under-ones and delivering comprehensive ‘Whole Family Support’ that wraps around families in their communities, helping break the cycle of poverty.” 

Social Justice and Housing Secretary Shirley-Anne Somerville said: “I am delighted to take on the role of Cabinet Secretary for Social Justice and Housing.

“I look forward to driving further progress on the work started in the last parliamentary term to eradicate child poverty, tackle the cost of living and accelerate the delivery of more affordable homes.

“Reducing child poverty in Scotland is at the heart of this government’s ambitious agenda for change and we will work across government, the parliament and with our much-valued third sector, to give families the safety and security they need.”

Tackling Child Poverty Delivery Plan 2026-31: Bringing Hope, Building Futures is the Scottish Government’s final statutory delivery plan under the Child Poverty (Scotland) Act 2017.  

Great British Summer Savings: VAT slashed to save families money on days out

  • Families across the UK will pay less for children’s meals in restaurants, kid’s tickets to cinemas and theatres, and entry to a wide range of attractions thanks to government action.
  • Throughout summer, VAT will be temporarily cut to help reduce the cost of days out and support businesses by increasing footfall as government launches Great British Summer Savings scheme.
  • Move is latest in government drive to support families and help ease pressures on household budgets.

Families will enjoy discounted attractions and meals out this summer, with the launch of the government’s Great British Summer Savings scheme to help people enjoy days out for less.

From 25 June to 1 September 2026, VAT will be slashed on eligible activities, helping families enjoy the weekend treats, the days out, the small plans that make life enjoyable during the cost of living squeeze while supporting the businesses that depend on summer footfall.

Great British Summer Savings will be a targeted and temporary scheme to reduce the costs of children’s meals in restaurants, children’s tickets for theatres and cinemas and tickets for everyone for attractions like soft play, adventure centres, and theme parks helping families enjoy a day out for less.

In a further boost for households, children aged five to 15 in England will be able to travel free on local bus services throughout August – making it easier and more affordable for people to get out and about.

The scheme is estimated to cost about £300m. The Chancellor has been clear we are taking a targeted and responsible approach, consistent with our strategy to reduce borrowing and debt and meet the non-negotiable fiscal rules.

Prime Minister Keir Starmer said: “When I think about the summer holidays, I think about the Lake District — where I went as a child and later made memories with my own family.

“I know how precious that time is, yet too many parents feel they have to hold back because the cost of living is still squeezing budgets.

“This summer we’re cutting the cost of a day out together – free bus travel for children aged five to 15 in England, and VAT slashed on a wide range of kid’s attractions – so families can afford more time together.”

Rachel Reeves, Chancellor of the Exchequer, said: ““Whether it is a fun day out, a family meal or taking advantage of the thousands of amazing attractions across the UK, Great British Summer Savings will support families with the little treats in life while boosting business across the UK.

“This comes on top of support we’ve already put in place including freezing fuel duty, taking off £117 off energy bills, freezing prescriptions, fuel duty and rail fares.

“We are able do this because we have made the right choices, resulting in the UK having the fastest growing economy in the G7, with inflation going down.

“I know the cost of living is still a number one concern for households. Our economic plan is the right one, supporting families and businesses and building a stronger and more secure Britain.”

Rachel Reeves also announced this week that the government is reforming the foreign branches exemption—a rule that allows companies to offset overseas losses—so multinationals can’t use it to reduce the tax they pay in the UK.

The Treasury expect these reforms to raise hundreds of millions a year and fund the package of measures set out today. Final costings for all measures will be published at the next Budget following certification from the Office for Budget Responsibility.

The support for families was announced by the Chancellor as she updated the House of Commons today on the government’s economic response to the Middle East. She reiterated that the government has the right economic plan, with inflation falling faster than expected and the UK being the fastest-growing economy in the G7 at the start of the year – with the IMF upgrading its growth forecast for the UK.

The VAT rate on eligible activities will be cut from 20% to 5% and applies across England, Wales, Scotland and Northern Ireland.

The reduced rate will apply to:

  • Children’s menu meals served in restaurants for consumption on the premises
  • Children’s and family tickets for cinemas, theatres, concerts, shows and exhibitions
  • Admission tickets, for both children and adults, to a range of attractions, including: amusement parks, fairs, museums, zoos, soft play centres, circuses, adventure parks, nature reserves, wildlife parks and observation attractions.

This money saving package supports families, while also supporting businesses through increased footfall. The government expects businesses to pass on VAT savings to customers.

Guidance for businesses in scope of the policy has been published by HMRC which outlines how businesses can operate the scheme.

The Chancellor has also announced a new £350 million Critical Chemicals Resilience Fund that will support strategically important producers and sites, strengthen critical supply chains and help support thousands of skilled jobs, alongside a ceramics package worth £120 million, which will back energy efficiency and decarbonisation in a sector vital to UK manufacturing and local communities.

The government will continue to work in partnership with these sectors on the wider challenges they face, including regulatory costs and the potential for action by the Trade Remedies Authority on unfair overseas competition.

She also confirmed a 10p per mile increase in tax‑free mileage rates for the 2026-27 tax year, backdated to April 2026. On average, this will save around £120 for a worker doing 6,000 business miles, using their own vehicle for work.

This builds on the Chancellor’s announcement yesterday that she is extending the fuel duty cut until the end of the year – saving motorists £120 since 2025.

This comes on top of action the government has already taken to reduce the cost of living, including cutting energy bills, freezing prescription charges, protecting motorists from fuel duty increases and raising the minimum wage.

Fiona Eastwood, Chief Executive Officer of Merlin Entertainments said: ““This is great news for the UK’s visitor economy and for families planning trips this summer. As the season gets underway, this timely move from the Government will make it easier for people to get out, explore and create memorable moments together at destinations across the country.

“Merlin will be applying this VAT cut to both admission tickets and children’s meals, adding more value to days out and short breaks at our 20 UK attractions. We’re excited to welcome more families to our resort theme parks and immersive experiences for a summer packed with fun, play and lasting memories.”

Paul Kelly, Chief Executive Officer of the British Association of Leisure Parks, Piers and Attractions said: “This is a very welcome and timely boost for the UK’s visitor attraction sector.

“It will help make great days out more affordable for families, while giving our members added confidence as they head into the peak summer season. The businesses we represent are at the heart of communities across the country, supporting jobs and local economies, and this measure recognises their importance.

“Our members stand ready to pass on this benefit and deliver brilliant, memorable experiences for visitors of all ages. We look forward to seeing more people enjoying the very best of what the UK has to offer.”

Kate Nicholls, Chair of UKHospitality, said: “”It’s good to see the Government recognise the importance of a lower rate of VAT for hospitality as the quickest and simplest way to lower prices and boost consumer confidence.

“A 5% rate of VAT for children’s meals and tickets is a good step to help families enjoy a great British break this summer.

“I look forward to working with the Government to ensure it is simple to apply and targeted effectively to reduce costs for families.”

Mark Way, President AMC Europe & Managing Director, Odeon Cinema Groups said: “ODEON welcomes today’s announcement focused on making cinema even better value and support any measures that seek to help cinema-goers, the industry and consumers more broadly.

As the UK’s largest cinema operator, we believe these measures will continue to help drive strong demand and we’re excited that our guests will be able to enjoy the big screen for less over this blockbuster summer.”

Tim Richards CBE, Founder and CEO, Vue (largest cinema operator in UK by market share), says: “As we anticipate an incredible summer of family films, we welcome this step from the government to help more families enjoy the Big Screen Experience over the holidays.

Chancellor Rachel Reeves statement to Parliament (21/05)

Chancellor Rachel Reeves yesterday (21 May) updated the House of Commons on the Government’s economic response to the war in Iran, and the action they are taking to support families and businesses with the Cost of Living:

With permission, Madam Deputy Speaker, I will make a statement on the Government’s economic response to the war in Iran, and the action that we are taking to support families and businesses with rising costs.  

Madam Deputy Speaker, this Government has the right economic plan.  

I said I would grow the economy: 

And last week the Office for National Statistics confirmed that Britain’s economy was the fastest growing in the G7 for the first quarter of this year. 

We beat the Office for Budget Responsibility’s forecast in the Spring, with economic growth at 0.6% in the three months to March.  

And because of the resilience of our economy, this week the International Monetary Fund upgraded Britain’s forecast for this year. 

I said I would cut borrowing: 

Borrowing last year was £20 billion lower than the previous year, and the latest forecasts show it falling in every year of this Parliament.  

The IMF has backed our economic plan, saying that the government’s fiscal framework strikes – and I quote – a “good balance between deficit reduction and growth-friendly spending.”  

I said I would cut the cost of living: 

Since the election interest rates have been cut six times. 

Real wages have continued to rise in every single month since I became Chancellor,

And yesterday, the ONS confirmed that inflation fell in April faster than expected, making the UK the only G7 economy where inflation fell last month.

Madam Deputy Speaker, we have the right economic plan.  

But the conflict in the Middle East poses a significant challenge to the world economy – including our own.  

I have not shied away from my criticism of the war.  

I believe it to have been a mistake. 

Nor have I ignored the costs that it will bring to bear on the British people. 

I have been clear-eyed about my duty: to do what I can to support families and businesses. 

To be responsive to a changing world. 

And responsible in the national interest.

Next week, Ofgem will confirm the level of the energy price cap that will apply from July. I know that any increase will be felt by families .  

Because of the decision that made at the Budget last year to cut £150 off energy bills, we have lessened the impact of rising prices, and current external forecasts suggest that the cap from July will be at a similar level to the cap in April last year.  

We stand ready to act if market conditions worsen significantly later this year, and I have been leading cross-government contingency work on design of potential future targeted and temporary support.

For businesses, any support will also need to be carefully targeted at firms most exposed to the crisis.  

But while many firms have been insulated from recent prices rises through fixed price contracts, there are sectors that face particular structural issues related to energy costs. 

That is why we have already increased support for our most energy intensive companies through the British Industry Competitiveness Scheme and we’ve brought that forward.  

And it is why we must also build resilience in our critical infrastructure and industrial strategy sectors where supply chains are critical for growth and security. 

Following representations from my right honourable friends – the members for Redcar, Mid Cheshire, and Bathgate Linlithgow – and building on the good work of the Minister for Industry – I am today establishing a £350 million Critical Chemicals Resilience Fund to support strategically important producers.

And having listened to my right honourable friends including the members for Stoke-on-Trent Central, North and South, and my honourable friend the member of Amber Valley and workers represented by the GMB union – I am today announcing a new £120 million fund to help our historic ceramics sector helping them to increase efficiency and drive-down energy costs, because we will always stand up for British industry and British jobs. 

The Government has also this week set out additional, targeted support for those businesses most exposed to rising fuel costs.  

For hauliers, the Government is granting a 12-month road tax holiday for HGVs, saving the typical heavy lorry up to £912. 

To support farmers and the rail freight industry, I have decided to cut duty on red diesel by over a third until the end of this year. 

And having heard from my honourable friends the members for Oldham West, Chadderton and Royton and the trade union Unison, I can today announce a 10p per mile increase in tax free mileage rates, backdated to April 2026; benefiting those who need to drive for work, from care workers to plumbers.

Madam deputy speaker, when a country faces challenges because of higher oil and gas prices, we must ensure that those who benefit from increased prices and volatility pay their fair share.  

In my first Budget, I extended and increased the Energy Profits Levy.   

Last year, I announced a new, permanent windfall tax regime on oil and gas price shocks. 

Last month, I increased the Electricity Generator Levy, alongside further action to weaken the link between high gas prices and electricity prices.  

Today, I am bringing forward specific changes to the taxation of foreign branch profits; changing how companies are taxed in relation to their overseas activities.  

Currently, some oil and gas groups that operate overseas through foreign branches have structured their tax affairs in a way which ensures they pay little or no Corporation Tax on their UK energy trading profits.  

Today we are putting an end to that practice.  

We expect these reforms to raise hundreds of millions of pounds a year and fund the package of measures set out today, with costings certified by the OBR forecast in the usual way.

Madam Deputy Speaker, I know the pressure family finances are under.  

That is why I have already taken action to provide help  

I increased the National Living Wage and National Minimum Wage to its highest rate ever.  

Freezing prescription charges and rail fares.  

And taking £150 off energy bills which contributed towards the fall in inflation last month.  

But I want to go further.  

And today I am taking further action to ease the burden on family finances.

First, fuel duty – I have already extended the 5p cut twice since the election and I can confirm today there will be no rise this year, recognising the pressure that the war has put on fuel prices.

Second, I know that the cost of the weekly shop is often one of the biggest worries for families. 

So last month I met with supermarkets to urge them to do all they can to keep prices low. 

And today I am taking action by suspending tariffs on over 100 different foods sold in supermarkets.  

And I am clear that I expect supermarkets to pass these savings on in full to consumers.

Third, I will not tolerate any company exploiting the current situation to make excess profits at consumers’ expense.  

So, I am bringing forward tough new powers so that the Competition and Markets Authority and other regulators can take action when firms break the rules.

Fourth, for many families driving is not always an option.  

Busses are the most popular form of public transport in Britain, with over four billion journeys made last year.  

I have already extended the £3 bus fare cap to March 2027 and today I can confirm that bus travel across England will be free for children aged between 5 and 15 throughout  August.

Finally, Madam Deputy Speaker, I recognise that what matters for families is not just getting-by, but being able to enjoy time together without worrying about the next bill.  

That is why I am launching the Great British Summer Savings scheme to help families and support our hospitality sector.  

So I can today announce a temporary cut in the rate of VAT on summer attractions from 20% to 5% over the summer holidays.  

This will apply to ticket prices for both adults and children, covering attractions such as fairs, theme parks, zoos and museums.  

It will include children’s tickets for cinemas, concerts, soft play and the theatre.  

And it will cut the cost of children’s meals in restaurants and cafes from 20% VAT to 5% as well. 

These changes will apply across the UK from the start of the Scottish school summer holidays on 25th June and run until the end of the school holidays in England, Wales and Northern Ireland on 1st September.

Madam Deputy Speaker, this Government has the right economic plan.  

We promised to grow the economy – and we have. 

We promised to cut inflation – and we have.  

And we promised to cut the cost of living – and we are. 

Promises made by a Labour Government.  

Promises delivered by a Labour Government. 

And I commend this statement to the House.

Applications for Holiday Hub support for next academic year now open

Families of children with disabilities and additional support needs are being encouraged to apply for the Council’s Holiday Hub provision, with the window now open for applications until 3 June 2026.

The Council has offered Holiday Hubs to eligible school age children and young people for over two decades – offering vital school holiday provision for those who cannot access any other form of mainstream activities during the holidays due to the nature or complexity of their disability or support needs.

Running Monday – Thursday from 9am to 3pm during the October, February, Easter and Summer holidays across ten weeks in total throughout the academic year, each holiday hub is run by an activity provider who is contracted by the Council to deliver the provision. 

This year, adaptations and updates to Holiday Hub eligibility criteria have been made to reflect extensive collaboration that has taken place with families through the Holiday Hubs parent/carer steering group.

This is to ensure provision is allocated as fairly and transparently as possible to children and young people who need it the most. 

Key information about Holiday Hubs including how to apply and eligibility criteria is on the city council’s website.

Families requiring support with their application should contact their school or email holidaysupport@edinburgh.gov.uk

Councillor James Dalgleish, Education, Children and Families Convener said:We have offered vital school holiday support to Edinburgh families for over 20 years, and I know from speaking to parents/carers just how much they need, value and rely on this provision during school holidays.

“Offering this support goes hand in hand with our ambition to make sure that every child and young person in Edinburgh has the opportunity to thrive and realise their full potential. Holiday Hubs offer a space where children and young people with a disability or an additional support need can have fun, take part in activities and make friends in a setting that meets their needs.

“I want to thank those families who are part of our Holiday Hubs parent and carer steering group. The input they have shared ensures that our investment in this important service meets the needs of those it is designed to help.”

New pathway set to reshape future of spa talent in Edinburgh

A NEW partnership between leading beauty education provider The Academy Glasgow and One Spa at Sheraton Grand Hotel & Spa Edinburgh is set to create a fresh pathway into the wellness industry, helping tackle therapist shortages while developing the next generation of spa professionals.

The initiative will see aspiring therapists undertake a structured scholarship-style training programme delivered by The Academy Glasgow, combining recognised qualifications with practical, hands-on experience within the live spa environment at One Spa.

Designed to support people entering the profession from a range of backgrounds, the programme blends classroom learning, practical assessments and workplace immersion to provide trainees with the skills, confidence and commercial understanding needed to build lasting careers in spa and wellness.

Fiona Young, Spa Director at One Spa, said: “This is about building careers, not filling vacancies. By combining high-quality education with genuine hands-on experience in a real spa environment, we’re creating a more modern pathway into the profession.

“Traditional three-year routes are not always realistic for everyone, but at the same time, one-day courses are not the answer either. Delivering treatments professionally requires far more than simply learning techniques, therapists need a proper understanding of anatomy and physiology, health and safety, client care and the guest experience.

“Partnering with The Academy Glasgow allows us to create a genuine pathway into the profession, giving people the highest standard of training alongside real-world experience from day one.”

Through the programme, trainees will work towards a globally recognised CIBTAC qualification in massage and facial therapy, delivered by The Academy Glasgow, while employed by Sheraton Grand Hotel & Spa Edinburgh throughout the process.

Founded as one of Scotland’s leading specialist training providers in beauty and wellness education, The Academy Glasgow is known for delivering industry-recognised qualifications and preparing students for successful careers across the spa and aesthetics sectors.

The Academy’s practical-led teaching model ensures trainees graduate with both the technical expertise and professional standards expected by premium wellness employer like the Sheraton.

Jenny Storey, Director of The Academy said: “We are absolutely delighted to welcome One Spa at Sheraton Grand Hotel as one of our new spa partners and incredibly grateful that such a prestigious spa has placed their trust in our Spa Therapist Traineeship programme.

Over the years, we have built multiple successful spa partnerships and have remained committed to delivering highly skilled, professional therapists who are truly prepared for the industry.

At the heart of everything we do is a genuine passion for raising standards within the spa and wellness sector. We care deeply about setting our learners up for long-term success, not only by developing their technical ability, but by inspiring confidence, professionalism, and a true passion for the industry.

By training our learners through globally recognised CIBTAC qualifications, we are able to give aspiring therapists the strongest possible foundation at the very beginning of their careers. We are excited to work alongside One Spa to help shape the next generation of exceptional spa professionals.”

Among the first to join the programme are Gaia and Poppie, two aspiring therapists entering the profession from very different backgrounds.

Originally from Milan, Gaia previously worked in marketing and has long held an interest in wellness, having grown up around alternative therapies through her mother’s work as an Ayurvedic therapist.

She said: “Wellness has always been something I’ve been passionate about, so having the chance to turn that into a career in such a supportive environment is incredibly exciting.

“It feels like the perfect opportunity to build something long term.”

Poppie, who has worked across a variety of hospitality roles, previously completed massage training through evening classes before deciding to pursue spa therapy professionally.

She said: “I always knew I enjoyed this kind of work, but I wanted the opportunity to explore it properly and develop real expertise.

“This gives me the chance to learn in a hands-on environment while building towards a genuine career.”

Alongside formal teaching at The Academy Glasgow, trainees will receive mentorship from senior One Spa therapists and gain exposure to every aspect of spa operations, including guest journeys, reception and behind-the-scenes service delivery.

This holistic training approach is designed to create well-rounded professionals equipped for long-term success within the sector.

Fiona added: “What sets this apart is the depth of experience. This is not simply a qualification — it’s a full introduction to the profession, delivered through expert education and immersive workplace learning.

“We want people to leave this programme feeling confident, capable and proud of the standards they’ve been trained to uphold.”

As demand for premium wellness experiences continues to grow, partnerships between education providers and employers are expected to play an increasingly important role in strengthening the future workforce of the spa industry.

Located in the shadow of Edinburgh Castle, Sheraton Grand Hotel & Spa Edinburgh blends contemporary Scottish style with five-star hospitality, while One Spa remains one of Scotland’s leading luxury wellness destinations.

Social Security Scotland: Child Disability Payment latest figures

New statistics show that over 120,000 children and young people have been supporting supported by Child Disability Payment.

Read the full publication at: https://socialsecurity.gov.scot/publications

Commonwealth Games 2026: Communities invited to Go All In!

LOTTERY FUNDING AVAILABLE

🏃‍♀️‍➡️. Don’t miss out – Glasgow 2026 funding won’t last forever!

Communities across Scotland are being invited to go All In — but you’ll need to move fast!

Up to £10,000 is available through National Lottery Awards for All to support sport, arts and community activities inspired by the Glasgow Commonwealth Games 2026.

🎉. You can use the funding to bring people together, get more people active, support well-being, celebrate culture and diversity and create something lasting for your community.

Funding is open to new and existing projects – current grant holders can apply too!

There’s no deadline – but funding will close as soon as the money runs out.

⭐. Don’t wait — apply on our website now:

https://ow.ly/j3IU50Z1LHT

Public Health Scotland: Analysing Smoking Harms

How do we measure the harm of smoking when it’s linked to so many diseases? Our latest blog explores:

  • How we estimate the proportion of deaths and illnesses linked to smoking
  • Why we’ve updated our approach using the latest evidence

Read the blog:

https://publichealthscotland.scot/our-blog/2026/may/analysing-smoking-harms-new-statistics-using-up-to-date-evidence/

Community Pop-Up Vaccination Clinic at Royston Wardieburn

TUESDAY 26th MAY 10am – 1pm & 1.30 – 4pm

Depending on your age, health conditions, or other factors, you could be eligible for a Covid Spring Booster Vaccine.

Our team will be at Royston Wardieburn Community Centre, 11 Pilton Drive North, Edinburgh, EH5 1NF on the 26th May from 10am till 1pm and 1.40pm till 4pm.

For eligibility and details about other pop-up clinics, please click the link below or call the Vaccination Enquiries Helpline: 0300 790 6296. 

https://www.nhslothian.scot/vaccinations/ 

Local Paramedic to run Edinburgh Marathon in full suit of armour

Edinburgh City Paramedic, Jay Watt, is running in this weekend’s Edinburgh Marathon to raise money for SAMH, clad in a full suit of metal armour.

Jay has been running the Edinburgh Marathon every year since 2011 in a new costume to raise money for local and children’s charities. Previous years’ costumes have included Buzz Lightyear, aliens, and a bunny suit, raising money for The Yard and The Teenage Cancer Trust, amongst others.

Speaking about his latest challenge, Jay said: “In my job, I have encountered patients struggling with their mental health, so this year I wanted to raise awareness of the support SAMH give and raise money to help them continue their important work.

“This is my 20th marathon, and I’ve run in big mascot costumes before, but this year I wanted to break through the stigma of mental health and let people know it’s okay to have a chink in your armour.”

In addition to running the marathon, Jay has been putting the suit through its paces by skiing, boxing, kayaking, and more. He has had some help from a Scottish blacksmith, Kev Paxton, to ensure his suit can withstand each challenge.

Jay said: “Kev has helped me adjust the suit so I can do these activities in it and raise as much awareness as I can.

“By taking part in these sports and fitness activities, I am looking to encourage a positive vibe about mental health and encouraging people to reach out.”

Follow Jay’s journey and donate to his fundraiser here: 

https://www.justgiving.com/page/jay-watt-6?fbclid=IwY2xjawR6UwNleHRuA2FlbQIxMABicmlkETF2THpPak1NRUtXMzFEM3Zrc3J0YwZhcHBfaWQPNTE0NzcxNTY5MjI4MDYxAAEeEBNPDXJ6JmNWNClTw1K_8aDpgLquv-7udeB17cUE3ihSc37gTnW2rUjFZm4_aem_JBv0cfBcER4Nr4Vm4Nq9YA

Young drivers warned about fake insurance sold on social media

Half (49%) of young drivers have bought insurance through social media or messaging apps, new research reveals. With 4 in 10 (39%) unconfident in spotting the signs of a fake policy, thousands could be paying for cover that doesn’t exist.

The FCA is warning 17-to 25-year-old drivers about ‘ghost broking’ scams where criminals sell bogus insurance policies through social media and messaging platforms. 

Ghost brokers pose as legitimate insurance sellers but offer cheap rates. The policies they sell are either entirely fake, are invalid because they falsify details to bring the price down, or are cancelled shortly after purchase. Victims are left unknowingly uninsured and at risk of prosecution, fines and even having their car seized.

Almost half of those polled (45%) said they generally trust products or services bought through social media. Young drivers may also be at greater risk due to cost of living pressures – with 1 in 7 (15%) saying they find it difficult to fit insurance into their monthly budget.

To avoid being taken for a ride, the FCA is urging young drivers to: 

  • Be wary of offers that sound too good to be true.
  • Avoid deals only available through social media and messaging platforms. Genuine sellers should have a legitimate website, phone number and address. 
  • Use the FCA Firm Checker to confirm the firm is authorised. Drivers should check the firm’s contact details match those listed on Firm Checker to make sure they are dealing with the genuine firm.

Graeme Reynolds, director of insurance at the FCA said: 

‘Tight budgets make cheap offers tempting – and scammers take advantage of that. Don’t get ghosted by a policy that doesn’t exist. Check the FCA Firm Checker before you buy, because driving uninsured could cost you far more than any premium.’

The FCA is working with social media influencers to warn young drivers about the growing threat of ghost broking.

Information for consumers on ghost broking.

Ursula Jallow, Director at the Insurance Fraud Bureau (IFB), said: Ghost broking scams are causing significant harm, particularly to young drivers, who are often targeted by fraudsters.

“Victims can lose substantial sums and may have their vehicles seized for driving uninsured, impacting their ability to work and access education. Raising awareness of the warning signs is vital.

“We are working closely with the FCA, police and industry partners to support enforcement efforts and protect the public. Anyone with information about insurance fraud is encouraged to report it confidentially via our CheatLine.”