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
Chancellor John Healey delivered his first Budget on 28 October 2026. For savers, two measures matter most. First, the planned cut in the cash ISA allowance for under-65s (from £20,000 to £12,000 from April 2027) will not go ahead; the £20,000 allowance stays for all ages. Second, tax rates on savings interest rise by a further 2 percentage points from 6 April 2027, to 24% for basic-rate, 44% for higher-rate and 49% for additional-rate taxpayers; the Personal Savings Allowance (£1,000 basic-rate, £500 higher-rate, nothing for additional-rate) is unchanged. Headline income tax and National Insurance rates were not changed, but income tax and NI thresholds are frozen until the end of 2030/31, and the personal allowance stays at £12,570. The Trading Allowance rises from £1,000 to £3,000 from 6 April 2027, and the National Living Wage rises 3.9% to £13.21 an hour from 1 April 2027. On energy and transport, a £100 Household Energy Payment is due from January 2027 for households in council tax bands A to D in England, the VAT cut on household electricity is extended to July 2027, and the 5p fuel duty cut is extended to July 2027. For pensioners, Unbiased reports that the triple lock stays until April 2029 with a revised formula from April 2030, and that pensioners with income up to the full new state pension pay no income tax from April 2027 to April 2030. The OBR forecasts growth of 1.2% in 2026 and 1.0% in 2027. Some measures still need to pass through Parliament in a Finance Bill, so details may change. Compare cash ISA rates →
Three points worth knowing this week. First, the Prudential Regulation Authority's increase to the Financial Services Compensation Scheme (FSCS) deposit protection limit took effect on 1 December 2025, raising the per-person, per-institution limit from £85,000 to £120,000 — the first increase since 2017. If you hold savings across several brands owned by the same banking group, check whether they share one combined £120,000 limit. Second, LemFi leads the easy-access table at 5.00% AER, which includes a 1.89% bonus for six months and then reverts to 3.04%; Oxbury Bank's Easy Access Autumn Account pays 4.57% with no bonus, and Zopa's Limited Access pot 4.56% (including a 1.05% 12-month bonus). Third, Afin Bank leads every fixed term in Moneyfacts data (30 October to 1 November): 5.17% for one year, 5.28% for two and three years, and 5.40% for five years. In cash ISAs, Shawbrook's 2-year fixed ISA pays 5.12% and Castle Trust's 2-year e-Cash ISA 5.10% (Moneyfacts, 30 October). See all rates →
CPI inflation rose to 3.5% in the 12 months to September, up from 3.1% in August and above the 3.4% most economists expected, according to ONS figures reported on 21 October. Motor fuel prices, up 30% on a year earlier (23% in August), made the largest upward contribution; core inflation rose to 2.8% from 2.6% and services inflation to 3.7% from 3.4%. The labour market data a day earlier was firmer: unemployment fell to 4.7% in the three months to August from 4.9%, regular pay growth was 3.7%, the employment rate rose to 75.3% and job vacancies were 691,000 (July to September), down 21,000 on the previous quarter, as reported by Babypips from the ONS release. With Bank Rate at 3.75% (the MPC voted 6–3 to hold on 17 September, with three members favouring a rise to 4%), markets were pricing a quarter-point rise on 5 November as close to certain, and economists quoted by the Press Association and the Scotsman expect it. For savers, a 3.5% inflation rate means any account paying less than that is losing purchasing power; for borrowers, it raises the prospect of higher mortgage and loan costs. The Budget on 28 October was the government's first major fiscal response; the OBR forecasts growth of 1.2% in 2026 and 1.0% in 2027. Free budgeting calculator →
Cost of living
The October 2026 Ofgem energy price cap of £1,723 per year took effect on Thursday 1 October. Gas unit rates rose approximately 8%; electricity bills stayed broadly stable as the government's VAT cut to zero on domestic electricity, also effective 1 October, absorbed most of the rise. If you are on a variable tariff, your bill changed automatically — no action needed. Looking further out, Prime Minister Burnham used this month's Labour Party Conference to announce plans for "greater public control" of the energy system, aimed at bringing down household costs over the medium term; the detail is expected in a government plan later this year, and it will not change bills this winter. The next Ofgem cap announcement — covering January to March 2027 — is due 25 November 2026. On 28 October the Budget extended the VAT cut on household electricity to July 2027 (expected to cut around £50 off the price cap from April 2027), announced a £100 Household Energy Payment from January 2027 for council tax bands A to D in England, and asked Ofgem to abolish gas standing charges, aiming for the end of 2027 (Unbiased). Forecasts published in September pointed upwards: EDF projected a typical annual bill of £2,165 from January, Uswitch's average of three suppliers about £2,117, and Cornwall Insight £1,872 — all forecasts, not the official figure. Free budgeting calculator →
With CPI at 3.5% in September, the top easy-access rate of 5.00% AER (LemFi) is about 1.5 percentage points above inflation, but it includes a six-month bonus and reverts to 3.04%, which is below inflation. Fixed bonds are further ahead: Afin Bank's 2- and 3-year bonds at 5.28% are about 1.8 points above CPI and its 5-year bond at 5.40% about 1.9 points, although CPI may move over the term. Money held at a rate below 3.5% loses purchasing power: on £10,000, 3.5% inflation erodes roughly £350 of buying power a year. From April 2027, savings interest above the Personal Savings Allowance will be taxed at 24%, 44% or 49%, and the £20,000 cash ISA allowance remains available to shelter interest. Bank Rate is 3.75% and the next MPC decision is on Thursday 5 November, when a rise to 4% is widely expected; a fixed rate locks in today's level. Compare savings rates →
Thursday 5 November, 12pm: MPC rate decision with full Monetary Policy Report and Governor's press conference — a rise from 3.75% to 4% is widely expected. Tuesday 17 November: ONS labour market data. Tuesday 25 November: Ofgem announces the January to March 2027 energy price cap. Thursday 17 December, 12pm: Final MPC decision of 2026. January 2027: £100 Household Energy Payment for council tax bands A to D in England; £2 single bus fare cap across England outside London from 1 January. 1 April 2027: National Living Wage rises to £13.21. 6 April 2027: savings interest tax rates rise to 24%, 44% and 49%; Trading Allowance rises to £3,000. 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.