The Energy Price Cap Rose 13% on 1 July
From 1 July to 30 September, Ofgem's price cap for a typical household on a standard variable tariff paying by Direct Debit is 13% higher. Electricity now averages 26.11p per kWh (up from 24.67p) plus a 57.19p daily standing charge; gas jumps to 7.33p per kWh (from 5.74p) — the sharper rise — with a 29.04p standing charge.
The cap limits unit rates, not your total bill, so your usage still drives what you pay. It covers only default tariffs — those on a fixed deal are unaffected, and switching or fixing can beat it. Ofgem sets the next level by 26 August.
Source: Ofgem — Changes to the energy price cap | Related: Real Cost of Living Tool
Premium Bonds' Prize Rate Rises to 3.8%
NS&I has lifted the Premium Bonds prize-fund rate to 3.8%, from 3.3%, for the July draw — its first increase since a run of cuts began in 2023. The odds on each £1 Bond shorten to 22,000 to 1, from 23,000 to 1, adding an estimated 322,000 more prizes.
NS&I also raised its Direct Saver to 3.45%, Income Bonds to 3.40% and its Direct ISA to 3.80% tax-free. But the prize rate is a tax-free average, not a guaranteed return — several easy-access accounts still pay more with certainty, so compare before moving money.
Source: NS&I — Improved rates for Premium Bonds and savings | Related: Compound Interest Calculator
New Motability Orders Now Carry VAT — but Not in Scotland
From 1 July, vehicles ordered through the Motability Scheme attract VAT and Insurance Premium Tax for the first time, following the 2025 Autumn Budget. New leases also carry a lower mileage allowance of 10,000 miles a year and a higher excess charge of 25p a mile, though insurance, servicing and breakdown cover still come bundled in.
Anyone already leasing keeps their existing terms until renewal, so only new orders are hit. Note the national split: the package does not apply in Scotland, which runs its own Accessible Vehicles and Equipment Scheme (AVES). The Treasury expects the reforms to save around £1 billion by 2030.
Source: Motability — Changes to the Motability Scheme | Related: VAT Calculator
Don't Overlook Your 31 July Payment on Account
If your last Self Assessment bill was over £1,000 and wasn't mostly collected through PAYE, a second payment on account for 2025/26 is due by 31 July. It is an advance instalment — broadly half of last year's bill — towards tax you are still building up, not an extra charge.
If your income has dropped you can apply to reduce it, though cutting too far leaves interest to pay later; if it has risen, a balancing payment follows on 31 January. Better to check the figure now than be caught short.
Source: GOV.UK — Payments on account | Related: Self-Employed Tax Calculator, Self-Assessment Tax Bill guide
Key Dates
28 July 2026 — FCA mortgage rule review consultation (CP26/18) closes.
30 July 2026 (Thursday) — Bank of England interest-rate decision; the base rate was held at 3.75% in June.
26 August 2026 — Ofgem publishes the October–December price cap.
28 August 2026 — HMRC direct-recovery consultation (taking tax debts from bank accounts) closes.