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A dip in retail sales last month could be mainly explained by a hit of poor weather, according to experts.

The Office for National Statistics (ONS) said retail sales volumes fell by 0.9% in March – the first month on month decline of the year to date and worse than the 0.5% decline forecast by economists.

It reported that feedback from retailers pointed to the weather as being the main factor behind a 1.3% drop in non-food sales compared to the previous month.

The performance also reflected the continuing impact of inflation on shoppers’ budgets, with separate ONS data released earlier this week highlighting the highest food inflation since 1977.

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Food inflation at 45-year high

Food volumes, the ONS data showed, eased by 0.7%.

It added that output in the retail sales sector was 0.6% up in the first quarter of the year, when compared with the previous three months.

ONS director of economic statistics, Darren Morgan, said: “Retail fell sharply in March as poor weather impacted on sales across almost all sectors.

“However, the broader trend is less subdued, as a strong performance from retailers in January and February means the three-month picture shows positive growth for the first time since August 2021.

“In the latest month, department stores, clothing shops and garden centres experienced heavy declines as significant rainfall dampened enthusiasm for shopping.

“Food store sales also slipped, with retailer feedback suggesting the increased cost of living and climbing food prices are continuing to affect consumer spending.”

The figures are important as consumer spending is the largest component of the UK economy – currently flatlining, though seen by the Bank of England as swerving recession without further shocks.

It is widely tipped to introduce a 12th consecutive rise in Bank rate next month to maintain its battle against stubborn inflation, adding to borrowers’ costs further.

But there is evidence that the outlook for consumer spending is brightening, despite the tough economy.

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Another interest rate rise ‘almost a done deal’

A closely-watched survey of consumer confidence showed people were their most upbeat this month since February last year, when Russia invaded Ukraine.

GfK’s Consumer Confidence Index rose for the third month in a row but still remained in negative territory at -30.

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Respondents were said to have a more positive view of their finances and the health of the wider economy.

Joe Staton, GfK’s client strategy director, said: “The brighter views on what the general economy has in store for us… could even be seen as the proverbial green shoots of recovery.”

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Discord hack shows dangers of online age checks as internet policing hopes put to the test

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Discord hack shows dangers of online age checks as internet policing hopes put to the test

Messaging platform Discord has said the official ID photos of around 70,000 users have been stolen by hackers.

The app, which is popular with gamers and teenagers, said the hackers targeted a firm responsible for verifying the ages of its users. Discord said its own platform was not breached.

The stolen data could include personal information, partial credit card numbers and messages with Discord’s customer service agents, the firm said.

No full credit card details, passwords or messages and activity beyond conversations with Discord customer support were leaked, it added.

Discord said it had revoked the third-party service’s access and was continuing to investigate. It said all affected users have been contacted.

“Looking ahead, we recommend impacted users stay alert when receiving messages or other communication that may seem suspicious,” it said.

Until recently, a hack like this could not have happened, because companies had no need to process and collect proofs of age.

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Now, so many governments are following the UK and introducing age verification for unsuitable or pornographic content that a company like Discord has to roll out age checks for a decent portion of its 200 million active users.

It’s a bit like the way that shops have to check your age if you’re buying alcohol – only because it’s online, it comes with a lot of additional complications.

Pic: Shutterstock
Image:
Pic: Shutterstock

A shop, for instance, won’t keep a copy of your passport once they’ve checked your age.

And it definitely won’t keep it in a massive (yet strangely light) safe along with thousands of other passport photocopies, stored right by its front door, ready to be taken.

Online, it’s surprisingly easy to do just that.

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It’s worth noting that the age verification system used by Discord wasn’t hacked itself. That system asked people to take a photo of themselves, then used software to estimate their age. Once the check was complete, the image was immediately deleted.

The problem came with the appeals part of the process, which was supplied to Discord by an as-yet-unnamed third party.

If someone thought that the age verification system had wrongly barred them from Discord they could send in a picture of their ID to prove their age. This collection of images was hacked. As a result, Discord says, more than 70,000 IDs are now in the possession of hackers.

(The hackers themselves claim that the number is much bigger – 2,185,151 photos. Discord says this is wrong and the hackers are simply trying to extort money. It’s a messy situation.)

There are ways to make age verification safer. Companies could stop storing photo ID, for instance (although then it would be impossible to know for sure if their checks were correct).

And advocates of ID cards will point out that a proper government ID could avoid the need to send pictures of your passport simply to prove your age. You’d use your digital ID instead, which would stay safely on your device.

But the best way to stop data being hacked is not to collect it in the first place.

We’re at the start of a defining test – can governments actually police the internet? Or will the measures that are supposed to make us safer actually end up making us less secure?

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Customers of five water firms are facing higher than expected hikes to bills

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Customers of five water firms are facing higher than expected hikes to bills

Customers of five water firms are facing higher than expected rises to their inflation-busting bills after the companies disputed limits imposed by the industry regulator.

The Competition and Markets Authority (CMA) was called in to review Ofwat’s determinations on what Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water could charge customers from 2025-30.

The CMA’s panel said on Thursday: “The group has provisionally decided to allow 21% – an additional £556m in revenue – of the total £2.7bn the five firms requested.

“This extra funding is expected to result in an average increase of 3% in bills for customers of the disputing companies, which is in addition to the 24% increase for customers of these companies expected as part of Ofwat’s original determination.”

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The decision showed that Wessex household and business customers faced the largest increase – on top of the rise agreed by Ofwat – of 5%, leaving their average annual bills at £622.

South East and Southern customers will see rises of 4% and 3% respectively while Anglian and Northumbrian’s are set to soak up the lowest percentage increase of just 1%.

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South East had sought the biggest increase – 18% on top of the 18% hike it had been granted over the five-year period.

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The companies exercised their right to an appeal after Ofwat released its final determinations on what they could charge at the end of last year.

They essentially argued that they could not meet their regulatory requirements under the controls amid a rush to bolster crucial infrastructure including storm drains, water pipelines and storage capacity.

Crisis-hit Thames Water was initially among them but it later withdrew its objection pending the outcome of ongoing efforts to secure its financial future through a change of ownership.

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Higher bills ‘part of the cost’ of water reform

Chair of the CMA’s independent panel, Kirstin Baker, said: “We’ve found that water companies’ requests for significant bill increases, on top of those allowed by Ofwat, are largely unjustified.

“We understand the real pressure on household budgets and have worked to keep increases to a minimum, while still ensuring there is funding to deliver essential improvements at reasonable cost.”

Ofwat, which has faced industry criticism in the past for an emphasis on keeping bills low at the expense of investment, is set to be replaced by a new super regulator under plans confirmed in the summer.

It has faced outrage on many fronts, especially over sewage spills, and allowing rewards for failure.

Water Minister Emma Hardy said in response to the CMA’s decision: “I understand the public’s anger over bill rises – that’s why I expect every water company to offer proper support to anyone struggling to pay.

“We’ve made sure that investment cash goes into infrastructure upgrades, not bonuses, and we’re creating a tough new regulator to clean up our waterways and restore trust in the system.

“We are laser focused on helping ease the cost of living pressure on households: we’ve frozen fuel duty, raised the minimum wage and pensions and brought down mortgage rates – putting more money in people’s pockets.”

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Britain’s winter blackout risk the lowest in six years – but ‘tight’ days expected

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Britain's winter blackout risk the lowest in six years - but 'tight' days expected

Britain is at the lowest risk of a winter power blackout than at any point in the last six years, the national electricity grid operator has said.

Not since the pre-pandemic winter of 2019-2020 has the risk been so low, the National Energy System Operator (NESO) said.

It’s thanks to increased battery capacity to store and deploy excess power from windfarms, and a new subsea electricity cable to Ireland that came on stream in April.

The margins between expected demand and supply are now roughly three gas power stations greater than last year, the NESO said.

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Renewables overtake coal for first time

It also comes as Britain and the world reached new records for green power.

For the first time, renewable energy produced more of the world’s electricity than coal in the first half of 2025, while in Britain, a record 54.5% of power came from renewables like solar and wind energy in the three months to June.

More renewable power can mean lower bills, as there’s less reliance on volatile oil and gas markets, which have remained elevated after the invasion of Ukraine and the Western attempt to wean off Russian fossil fuels.

“Renewables are lowering wholesale electricity prices by up to a quarter”, said Jess Ralston, an energy analyst at the Energy and Climate Intelligence Unit (ECIU) thinktank.

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In a recent winter, British coal plants were fired up to meet capacity constraints when cold weather increased demand, but still weather conditions meant lower supply, as the wind didn’t blow.

Those plants have since been decommissioned.

But it may not be all plain sailing…

There will, however, be some “tight” days, the NESO said.

On such occasions, the NESO will tell electricity suppliers to up their output.

The times Britain is most likely to experience supply constraints are in early December or mid-January, the grid operator said.

The NESO had been owned by National Grid, a public company listed on the New York Stock Exchange, but was acquired by the government for £630m in 2023.

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