UK money news
Financial and economic updates relevant to people on everyday incomes. Primary sources: Bank of England, Office for National Statistics (ONS), Ofgem. Figures correct at date of publication — rates, prices and policy positions change. Check primary sources before making financial decisions.
Money news
The Bank of England's Monetary Policy Committee held Bank Rate at 3.75% on 17 September 2026 — the sixth consecutive hold since December 2025. The vote was again 6–3. Catherine Mann, Megan Greene and Huw Pill all voted for an immediate 25 basis-point rise to 4.00% — the same three as July. The MPC's majority reasoning was clear: "Financial conditions will continue to work to push down on inflation, and holding Bank Rate is appropriate at this meeting." But the statement accompanying the hold was more hawkish than the headline suggests. The MPC warned that "if the conflict in the Middle East persists for an extended period, as appears to be the case, and the risk of second-round effects emerging increases, it is likely that policy may have to tighten." Governor Andrew Bailey put it plainly: "The longer this volatility persists, the bigger the impact it will have on inflation, and the more likely it is we will need to raise Bank Rate." The committee also voted unanimously to continue reducing its stock of UK government bonds through quantitative tightening, at a pace of approximately £20 billion per year. The next decision is 5 November 2026 — a forecast-round meeting with a full Monetary Policy Report, updated projections and a Governor's press conference. November is now the meeting where the direction of rates will be decided. NumiSave will cover it in full. Check current savings rates →
The ONS confirmed on 16 September that UK CPI inflation rose to 3.1% in August 2026, up from 2.9% in July. This was the second consecutive monthly increase. The largest contributor to the CPI annual rate was transport at 0.69 percentage points — primarily driven by higher motor fuel prices and air fares recovering from last year. The largest contributor to CPIH (which includes owner-occupier housing costs) was housing and household services at 1.32 percentage points. Food inflation continued to ease, making its smallest contribution to CPI since September 2021. The MPC's September statement confirmed that UK CPI "is likely to rise further over coming quarters" — consistent with the Bank's July Monetary Policy Report forecast of a peak around 3.2% in Q4 2026. The October energy price cap at £1,723 — a 4% rise — takes effect in 11 days and will feed directly into the October and November CPI readings. With services inflation still elevated and the energy cap rising, the Bank's warning about needing to raise rates if second-round effects emerge is increasingly credible. The next CPI release covering September 2026 is due 21 October. See how savings rates compare to inflation →
This was a significant week for savers. NS&I raised the Premium Bonds prize fund rate to 4.35% — up from 3.80%. This makes Premium Bonds materially more competitive than they have been, though the prize rate is a statistical average across all bondholders; individual returns vary significantly depending on luck and the size of the holding. Premium Bonds remain FSCS-free (backed directly by HM Treasury) and the £50,000 maximum holding limit applies. On fixed rates, Hargreaves Lansdown Active Savings now leads the one-year fixed market at 5.01% AER following a rate hike — a minimum £500 deposit and no early access. The best high-yield savings accounts across all types rose to 5.25% AER as of 17 September. Easy access rates are unchanged: LemFi 5.00% AER (with bonus) and Stafford Railway BS at 4.60% AER (flat rate). With the MPC holding at 3.75% and November now the key meeting, rates are likely to remain competitive for at least the next six weeks — and could move higher if the Bank raises in November. See all current rates →
Cost of living
The October 2026 Ofgem energy price cap of £1,723 per year takes effect on 1 October — 11 days from today. Gas bills rise approximately 8%. Electricity stays broadly stable as the government's VAT cut to zero on domestic electricity, also effective 1 October, absorbs most of the electricity unit rate increase. The annual bill rise is £60 for a typical dual-fuel household, or £5 per month. To put this in context: a saver with £1,500 in the top easy access account at 5.00% AER earns approximately £75 per year in interest — more than the annual increase in energy costs. At £5,000, interest earnings are approximately £250 per year. Making your savings work at competitive rates directly offsets rising bills. If you have not yet compared rates, the top flat-rate easy access account — no bonus, no expiry — is currently 4.60% AER from Stafford Railway BS. The next Ofgem cap announcement — covering January to March 2027 — is due 25 November. Compare savings rates →
The Burnham government's first Budget is 38 days away on 28 October 2026. The three decisions that matter most for savers remain open: whether the income tax personal allowance freeze (£12,570 since 2021) will be lifted; whether the planned reduction in the cash ISA allowance from £20,000 to £12,000 for under-65s from April 2027 will be confirmed, modified or reversed; and whether higher income tax rates for higher earners will be introduced. The September MPC decision and the 3.1% CPI figure increase the political pressure on the Chancellor to provide cost-of-living relief. However, John Healey has committed firmly to meeting the existing fiscal rules. One practical action ahead of the Budget: if you have unused ISA allowance and are concerned about the limit being cut in April, using it before 28 October removes any uncertainty about the final figure. See current cash ISA rates →
Tuesday 21 October, 7am: ONS September 2026 CPI data. Tuesday 28 October: Budget. ISA limits, personal allowance, income tax. Thursday 5 November, 12pm: MPC rate decision with full Monetary Policy Report and Governor's press conference. This is the meeting where the Bank will decide whether to raise Bank Rate to 4.00% — the most significant financial decision of 2026. Tuesday 25 November: Ofgem announces the January to March 2027 energy price cap. The winter quarter and typically the highest bills of the year. Thursday 17 December, 12pm: Final MPC decision of 2026. A hold or cut if November raises; a second rise possible if inflation persists. 1 January 2027: £2 single bus fare cap comes into effect across England outside London. Check savings rates →
Frequently asked questions
When is the next Bank of England interest rate decision?
The next Monetary Policy Committee (MPC) decision is at 12:00 on 5 November 2026 — with a full Monetary Policy Report and Governor's press conference. Bank Rate was held at 3.75% on 17 September 2026 by a 6–3 vote for the sixth consecutive time. Three members (Greene, Mann and Pill) voted to raise to 4.00%. The MPC warned that if the Middle East conflict persists, rates may need to rise. Decisions are published at bankofengland.co.uk.
Where does NumiSave get its financial data?
All money news on NumiSave is sourced from UK government and regulatory primary sources: Bank of England MPC minutes, Office for National Statistics (ONS) bulletins, Ofgem press releases, HM Treasury publications and HMRC PAYE data. Where secondary sources are cited, they are named and linked directly. We do not use aggregator data where a primary source is available.
How does the base rate affect my savings and mortgage?
The Bank Rate is the rate the Bank of England charges commercial banks to borrow overnight. When it rises, banks typically pass higher costs to borrowers (mortgages, loans) and increase rates paid to savers, though the pass-through is not always immediate or complete. When the rate falls, the reverse tends to follow. Tracker mortgages move directly with the base rate; fixed-rate mortgages are unaffected until the fix ends. Easy-access savings accounts tend to move within weeks of a rate change.
How often is money news updated on NumiSave?
All articles are reviewed and updated at least weekly. Time-sensitive articles — such as Bank of England rate decisions, Ofgem cap announcements and ONS bulletin days — are updated on the day of publication. The update date is shown at the top of this page and on each individual article.
This is factual information, not financial advice or a personal recommendation. Figures are sourced from the Bank of England, ONS, Ofgem and other primary sources and are correct at the date shown. Rates and policy positions change — check primary sources before making financial decisions.