The October Energy Price Cap Is Almost Set
The next energy price cap, covering 1 October to 31 December 2026, will be confirmed by Ofgem on 26 August. The assessment window that sets it - wholesale prices from 19 May to 18 August - closes next week, so the figure is all but locked. Forecasters at Cornwall Insight now expect a typical annual bill of about £1,700, trimmed from an earlier estimate near £1,906.
The main reason for the lower forecast is the government's decision to cut VAT on household electricity from 5% to 0% from 1 October - one of the new Prime Minister's first measures, worth roughly £45 a year to a typical household and set to run until 31 March 2027. A forecast is not the cap, and the exact figure is not settled until Ofgem publishes. Remember the cap limits unit rates and standing charges, not your total bill, which still depends on how much energy you use.
Source: Ofgem - energy price cap | Related: Real Cost of Living tool
The Best Savings Rates Are Still Beating Inflation
With the Bank of England base rate held at 3.75% and inflation last measured at 2.6%, the top savings deals still deliver a real return. As at 13 August, the best easy-access accounts paid up to 5.00% AER, and the best two-year fixed bonds reached about 4.90% AER. Several of the headline easy-access rates include a temporary bonus - Cynergy Bank's latest issue pays 4.55% AER, of which 2.00% is a bonus for the first 12 months.
The catch with a bonus rate is that it drops sharply when the bonus ends, so it pays to diarise the date and move your money if the rate falls. It is also worth checking your Personal Savings Allowance: a basic-rate taxpayer can earn £1,000 of savings interest tax-free each year, a higher-rate taxpayer £500, and above that the interest is taxed at your marginal rate.
Source: Moneyfacts - weekly savings roundup | Related: Compound Interest guide
Student Loan Interest Is Capped at 6% from 1 September
The interest charged on Plan 2 and Plan 3 student loans will be capped at 6% for the year from 1 September 2026 to 31 August 2027. Without the cap, Plan 2 interest can run from RPI (currently 4.1%) up to RPI plus 3% depending on income. Plan 5 loans - for students who started from 2023 - are charged at RPI, so 4.1%, with no extra margin.
The repayment thresholds are unchanged: you repay 9% of income above £29,385 on Plan 2 and above £25,000 on Plan 5. Interest changes what your balance grows by, but not what leaves your pay each month - that is set by your income and your plan's threshold, whatever the rate.
Source: House of Commons Library - student loan rates and thresholds | Related: Self-Employed Tax Calculator
Key Dates
18 August 2026 (Tuesday) - Ofgem's price-cap assessment window closes, and the next ONS labour market figures are released.
26 August 2026 (Wednesday) - Ofgem confirms the October to December energy price cap.
1 September 2026 (Tuesday) - new student loan interest rates take effect, including the 6% cap on Plan 2 and Plan 3.
17 September 2026 (Thursday) - next Bank of England interest-rate decision.