As summer winds down, thoughts turn from holidays and days out to school uniforms, stationery and lunchboxes. But for many parents, the excitement of a new school year also comes with the stress of paying for it.

Research shows the minimum cost of education is now over £1,000 a year for a primary school child and nearly £2,300 a year for a secondary school child.^[1]

How are parents paying for back-to-school?^[2]

Back in 2024, 39% of parents would need to rely on credit to pay for school costs. Of those:

• 20% would use credit cards
• 13% would rely on their overdrafts
• 10% would turn to buy now, pay later (BNPL)
• 6% said they’d borrow from families and friends

Why is back-to-school so expensive?

It’s not just the school uniform —the start of a new school year can mean buying things like school meals, transport passes and additional clothing. 

Packed lunches and snacks are now costing families more than school uniforms, with 2024 figures showing parents spent an average of £486.30 a year for a primary school child and £846.15 for a secondary school child.¹

How many parents are struggling financially? ^[3]  

Since January 2025, 40% of parents feel anxious about back-to-school spending, slightly lower than 47% last year. This drop might be due to parents changing their approach, with nearly 1 in 5 bargain hunting or shopping second-hand to save money. Others are planning to save throughout the year, so they’re financially prepared for the costs when September comes.

What can I do to prepare for back to school?

Use these four tips to make your budget go further this academic year:

1. Get organised early
2. Look before shopping – Check what’s in the house before hitting the shops.
3. Spread the cost – Uniforms often go on sale after the July/August rush, so consider buying the next size up for next year.
4. Label it before they lose it – Name-tag everything to cut down on replacements.
5. Get the reading list early – Borrow from the library or buy second-hand, before the term starts.
6. Save on uniforms
7. Go logo-free where possible – Supermarket basics can be much cheaper if your school allows them.
8. Snap up second-hand – Swap outgrown items for ones that fit at school swap shops, Facebook groups, or charity stores.
9. DIY the logo – Sew on a school badge to cheaper blazers or jumpers.
10. Make use of support
11. Ask the school for help – They may have spare kit or signpost you to funding.
12. Check your council’s grants
    1. England – Support varies by council; grants are no longer national. Scotland – Most councils offer a school clothing grant if you qualify. Wales – Lower-income families can apply for a school essentials grant.
    1. Northern Ireland – The clothing allowance scheme helps eligible families with uniform costs.
13. Tap into charity support – PTAs, the Fashion & Textile Children’s Trust, and others offer grants (see educational-grants.org). Schemes like Wacky Warehouse’s uniform collection can help you kit your child out for free.
14. Think beyond uniforms
15. Buy big-ticket items smart – Wait for deals on laptops, tablets, or sports gear. Some charities and local schemes also loan or donate devices. The Digital Poverty Alliance currently supplies laptops in seven UK areas.
16. Do the lunch maths – Compare the cost of packed lunches vs school dinners.
17. Check for free travel – You may qualify based on distance, income, or safety.
18. Buddy up for the school run – Carpool or join a walking or bus scheme to save money and time.

Think twice before using Buy Now, Pay Later (BNPL)

BNPL can help spread costs in the short term, but knowing the risks is important, especially as missed payments can lead to fees and affect your credit score. If you’re considering it, make sure you understand the terms and read our latest article on the hidden dangers of BNPL for more advice.

What you can do next

If you are struggling with debts call us on 0800 072 1206. We’re open from 8am – 8pm Monday to Friday and 9am – 3pm on Saturdays.

Alternatively, you can visit our www.payplan.com/police to speak to us via live chat or for more information.

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[1] https://cpag.org.uk/sites/default/files/2025-05/Cost_of_education_UK.pdf

[2] https://www.moneywellness.com/blog/half-of-parents-cant-afford-back-to-school-costs

[3] https://drive.google.com/file/d/1WauXlKJ-A6_slj1rFNZTVZ18EooL9mDe/view

More than 8 million people in the UK are now using Buy Now, Pay Later (BNPL) for purchases under £50 – and, for many, it’s becoming more than just a convenient way to pay.

With the cost of living still high and many households under financial pressure, BNPL is often seen as quick fix. But what starts as a short-term solution can sometimes lead to longer-term stain on your budget.

What we’re seeing at PayPlan

Since 2022, we’ve seen a steady rise in the number of people coming to us for help BNPL debts of £50 or less. Although these amounts may seem small, multiple repayments across different providers can quickly become difficult to manage.^[1]

What is Buy Now, Pay Later (BNPL)?

BNPL is a type of short-term credit that allows you to delay payment – usually by splitting a purchase into smaller instalments over a set period. It’s widely offered at online checkouts and often promoted as interest-free.

It’s quick, convenient and usually doesn’t involve a formal credit check – but that could soon change.

Rachel Duffey, CEO at PayPlan, says:

“Buy Now, Pay Later can offer short-term breathing space – but it’s becoming a long-term burden for many people. We’re supporting more clients than ever who are juggling multiple repayments. We know for some people it can offer a helpful way to manage spending, but for others it can lead to overspending, confusion and growing debt. If it’s starting to feel unmanageable, please don’t wait to ask for help – the right support can make all the difference.”

Regulation is coming – and it will affect how BNPL works

The government recently confirmed that from July 2026, BNPL lenders will be regulated by the Financial Conduct Authority (FCA). This means:

• Shoppers will face stricter affordability checks
• Some people may be refused BNPL credit if it’s not considered affordable
• Providers will need to give clearer, fairer information about fees, terms and consumer rights
• People will gain access to Section 75 protection and the Financial Ombudsman Service

These rules are designed to protect consumers from taking on too much debt or being caught out by late payment fees – and to slow down that “one-click” access to potentially unaffordable credit.

The changes are welcome – but they’re not in place yet. Until then, BNPL remains unregulated, and many people are unaware of the risks.

Who’s using BNPL – and what for?¹

It’s especially popular with Gen Z

BNPL is especially popular with younger adults and parents, according to new research from TransUnion:

• 15% of UK adults use BNPL for purchases under £50
• 4% use it for items under £25^[2]
• 1 in 5 people aged 18-24 use BNPL for small essentials, including weekly food shops and takeaways.

Parents are also turning to BNPL for school costs

• 6% of UK adults use BNPL for school supplies
• This rises to 15% for parents aged 25-34
• 19% of those using BNPL for school items describe themselves as financially comfortable – suggesting that BNPL is often used for convenience, not just necessity

Why do people choose BNPL?

Many people turn to BNPL because:

• It helps spread the cost – especially when cashflow is tight
• It’s quick and easy – with simple application processes
• It’s everywhere – often the most visible option at checkout

In fact, more than 1 in 4 UK adults now say they prefer BNPL over credit cards for everyday spending¹. But there’s a catch, with payments spread across different providers and dates, it can be easy to lose track and the costs can build up fast. 

The risks of Buy Now, Pay Later to watch out for

Overspending without realising

Breaking purchases into smaller payments can make them feel more manageable – but if you’re not keeping track, the total can quickly snowball.

Hidden fees and charges

While BNPL is often advertised as interest-free, missing a payment can trigger fees or charges. These aren’t always obvious upfront, and they can build up quickly if you fall behind.

Credit score impact

Late or missed payments can result in defaults or negative markers on your credit file. This can affect your ability to get a mortgage or loan in the future.

If BNPL repayments are becoming difficult, you’re not alone

If you are struggling with debts call us on 0800 072 1206. We’re open from 8am – 8pm Monday to Friday and 9am – 3pm on Saturdays.

Alternatively, you can visit our www.payplan.com/police to speak to us via live chat or for more information.

Looking for budgeting support in the meantime? Visit BudgetSmart which is full of tips and tools to help you stay in control every day.

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[1] Data retrieved within PayPlan for clients who have come to our Helpline team and have and have a BNPL account with a balance of £50 an under on the 18/7/25.

[2] https://newsroom.transunion.co.uk/over-one-in-seven-brits-now-use-buy-now-pay-later-for-bitesize-purchases

If you’re employed, your employer must have a workplace pension scheme in place. If you meet the following criteria, your employer will enrol you into their pension scheme and make payments into your pension:

• You’re a UK resident, usually working in the UK
• You’re aged between 22 and the state pension age (check your state pension age)
• You earn at least £10,000 a year

In your pension, there’s a minimum total contribution requirement of 8%. This is usually built up of your employer contributing at least 3% and you, as the employee, contributing the remaining 5%. Whilst 3% is the legal minimum requirement, many employers may choose to contribute more.

If you’re under the age of 22, you can ask to be enrolled into a pension scheme. Your employer must let you join the scheme if you’re between 16 and 74 years old. At a young age, retirement may seem like a long way away, but it helps you to start saving for a more comfortable life at an older age and may mean you might even be able to retire earlier than planned.

An employer is unable to unfairly dismiss or discriminate against you for being in their workplace pension scheme, nor can they encourage or make you opt out.

What happens when I’m auto-enrolled?

Once you’ve been auto-enrolled, your employer will write to you explaining:

• The date you entered the scheme
• Details about the scheme, including who runs it
• How much they’ll contribute and how much you’ll be paying
• How you can leave the scheme
• How tax relief applies to you

When will I receive my pension?

Pension schemes usually set an age when you can access your pension, normally between 60 and 65 years old, but the earliest age is 55 years old.

In some circumstances, including if you’re retiring early because of ill health, you may be able to access your money before you turn 55.

When you reach your pension maturity date, you can take 25% of it tax-free as a lump sum and you’ll pay income tax on the rest as you receive it monthly.

If you try to take money out of your pension before you turn 55, you may pay tax of up to 55% of the pension value.

Making debt more affordable

If you are struggling with debts call us on 0800 072 1206.   We’re open from 8am – 8pm Monday to Friday and 9am – 3pm on Saturdays.

Alternatively, you can visit our www.payplan.com/police to speak to us via live chat or for more information.

Ignoring money troubles won’t make them go away. The longer you wait, the fewer options you have. Missed payments can lead to late fees, credit score damage, rising debt and even legal action. Before you know it, small struggles can snowball into serious financial stress.

BudgetSmart helps you take action now. Find hidden savings, adjust your spending and get back in control before things spiral. Don’t wait for the next overdue notice.

How does BudgetSmart work?

BudgetSmart is split into categories that will help you to review each element of your household budget.

Simply choose one of the categories for a breakdown of easy actions you can take that may help to cut costs, improving your monthly budget. You can also search for the expense that you’re looking to save money on in the search box.

As an example, if you’re worried about how much your food shopping bill has increased, you can use this category to make small changes to the way you shop, which could add up to big savings over time.

In this category, you’ll find:

• Ways to save money at the supermarket
• Vouchers and free meals may be available to you
• Coupons, cashback, loyalty cards and apps
• Recipe ideas
• And much more

Increase your income with BudgetSmart

Use the Income Maximisation section to check you’re receiving all the income you’re entitled to.

In here, there’s a handy benefits checker, along with information about all the potential benefits you may be able to receive.

Alongside the benefits checker, there’s also tips on other ways to increase your income including:

• Cashback and reward schemes
• Creating a budget and shopping tips
• Discount schemes

Making debt more affordable

If you are struggling with debts call us on 0800 072 1206.   We’re open from 8am – 8pm Monday to Friday and 9am – 3pm on Saturdays.

Alternatively, you can visit our www.payplan.com/police to speak to us via live chat or for more information.

From September 2025, working parents of children under the age of five will be entitled to 30 hours of government-funded childcare a week.

Currently, 15 hours of government-funded childcare is available for all children from the age of nine months. 30 hours of government-funded childcare is available for children aged three to four, if parents are working.

What are funded childcare hours? 

Funded childcare hours are government-subsidised hours of childcare for parents of young children. They’re available to be used in registered childcare settings. The UK government provides these hours to support families by providing their children with early years education in a structured environment.

How do I qualify for these hours?

To qualify, you need to be working or starting a new job, on sick or annual leave, or on shared parental, maternity, paternity or adoption leave. The amount you earn must be at or more than the value of the National Minimum Wage or Living Wage for 16 hours a week on average.

You don’t qualify if your adjusted net income is over £100,000 a year. Adjusted net income is your total taxable income before any Personal Allowances and certain tax reliefs are deducted such as, trading losses, donations to charities through Gift Aid and pension contributions.

If you’ve been self-employed for less than 12 months and you earn less, you may still qualify. Income that doesn’t count includes dividends, interest, income from property investments or pension payments.

You apply via the Government website to receive your childcare code, which you need to give to your registered provider. When you have your account set up and the code is active, you need to reconfirm your eligibility every three months.

What other financial support is available for parents?

• Tax-free childcare – You can get up to £500 every three months (up to £2,000 a year) for each of your children to be used to help with the cost of registered childcare. This goes up to £1,000 every three months if a child is disabled (up to £4,000 a year). It can be used in addition to funded childcare hours.
• Child Benefit – You can receive Child Benefit if you’re responsible for raising children under the age of 16, or under 20 if they stay in approved education or training. From April 2025, rates increased as follows:
  • First or eldest child: From £25.60 a week to £26.05 a week
  • Any additional child: From £16.95 a week to £17.25 a week

What you can do next

If you are struggling with debts call us on 0800 072 1206. We’re open from 8am – 8pm Monday to Friday and 9am – 3pm on Saturdays.

Alternatively, you can visit our www.payplan.com/police to speak to us via live chat or for more information.

If you’re behind on regular payments or falling into debt, BudgetSmart has hundreds of easy actions you can take to improve your monthly budget and bring you back onto the path to clearing your debts.