This week in 60 seconds
- Energy: the price cap rises 4% from 1 October. A typical Direct Debit household figure becomes £1,723 a year.
- Interest rates: Bank Rate is 3.75%. The next decision is due on 17 September.
- Mortgages: if your fixed deal ends by March, start checking your options now—not the week before it ends.
The big move · Energy
The cap is rising. Your bill is not capped at £1,723.
From 1 October to 31 December, Ofgem’s price cap rises by 4%. The £1,723 figure is an illustration for a typical household paying by Direct Debit in England, Scotland and Wales—not a maximum bill.
What it meansYou still pay for every unit you use, plus daily standing charges. Higher-use homes can pay more than the headline figure.
Do thisFind your annual gas and electricity use in kWh on a recent statement. Use those figures—not your monthly Direct Debit—when checking whether a fixed deal fits.
Don’t do thisDo not rush into a fix based only on the monthly price. Check unit rates, standing charges, exit fees and the full term.
Source: Ofgem’s current price-cap rates ↗
What to watch · Interest rates
Ignore predictions. Know your date.
Bank Rate is currently 3.75%, with the next decision due on 17 September. A fixed mortgage payment will not change because of that announcement, but the rates available when your deal ends can move.
Your move: find your mortgage deal-end date. If it is within six months, ask your lender for its product-transfer options and compare the total cost elsewhere.
Check the Bank of England’s latest decision ↗
The 10-minute win · Mortgages
Set the reminder before the rush.
MoneyHelper recommends starting to shop around up to six months before a fixed or discounted mortgage deal ends. That gives you time to understand fees and avoid slipping onto a lender’s standard variable rate by accident.
Your move: set one calendar reminder for exactly six months before your deal ends. If that date has passed, start now.
Read MoneyHelper’s remortgaging guidance ↗
Bank Rate · 3.75%Do not build your plan around an immediate cut.
In July, six Bank of England policymakers voted to hold and three preferred a rise. With inflation risks tilted upwards, a hold or rise at the next meeting remains plausible. That is our inference—not a Bank forecast.
Your moveIf your mortgage deal ends within six months, check options now. Compare the total cost and fees; you do not need to guess the next rate decision.
Inflation · 2.9%The direction is less settled than the headline.
UK CPI inflation rose from 2.6% in June to 2.9% in July. One reading does not decide interest rates, but further rises would make near-term cuts harder to rely on.
What changes this viewWatch the next inflation release and the Bank’s 17 September decision. Softer prices and wages reduce pressure; persistent energy and price rises increase it.
Energy cap · +4%October is known. What follows is not.
Ofgem’s typical annual Direct Debit figure rises to £1,723 from October. Wholesale energy remains volatile, so the following cap could move either way.
Your moveCompare using annual kWh, unit rates, standing charges, exit fees and the full term. Never fix purely because a forecast sounds certain.
Official data: Bank of England ↗ · ONS inflation ↗ · Ofgem ↗
The bottom line
Do not try to fix everything this week.
Find one number: your energy use in annual kWh. That single detail makes your next comparison more accurate and more useful.
Take the Square Peg Check
General information, not personal financial advice. Rates, prices and eligibility can change. Check current terms before acting.