Today in Money: we bring you the latest as the new energy price cap is announced – and it’s risen by even more than experts predicted. And, later, we’ll have our weekly Savings Guide.
Wednesday 27 August 2025 07:05, UK
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The average annual energy bill will rise by more than expected in October, Ofgem has announced.
Major forecasters Cornwall Insight had anticipated a 1% rise to the energy price cap, taking it to £1,737.
But the energy regulator has increased it even further, taking it up by 2% to £1,755.
It’s an increase of £35 from the current cap, which is the typical sum most households pay for gas and electricity when using direct debit.
This equates to an average monthly increase of £2.93.
Those on fixed-rate deals will see no change until their current term expires.
The price cap limits the amount suppliers can charge per unit of energy and is revised every three months.
The energy price cap limits what utility companies can bill customers for a daily standing charge and each kilowatt-hour of gas and electricity they use.
Ofgem, the regulator, sets the cap quarterly and estimates how much the average household would typically pay over a year at the new unit price.
Here’s what it actually caps:
Until 30 September, gas prices are capped at the reduced level of 5.48p per kilowatt-hour (kWh) and electricity at 22.36p per kWh.
Standing charges are currently around 60p a day for electricity and 31p a day for gas (though they vary by region).
The real annual cost per customer will be different depending on how much energy you actually use. The more gas and electricity you use, the more you pay.
Ofgem’s price cap only applies to people in England, Scotland and Wales on standard variable or default tariffs.
This covers most households, whether you pay by direct debit or a prepayment meter.
It doesn’t apply to people still on fixed-rate tariffs.
We’ll find out the new energy price cap a little later this morning – and it doesn’t look like it’s going to be good news.
Ofgem sets the price cap each quarter, meaning the figures announced today will be introduced in October and last until December.
Energy consultant and major forecaster Cornwall Insight predicts energy bills will rise by £17 to £1,737 a year for a typical dual fuel household – a 1% increase from today’s rate of £1,720.
Here’s a breakdown of the changes it is anticipating…
Why is the cap likely to rise?
Cornwall Insight says its forecast reflects changes it assumes Ofgem will make in October to cover the expansion of the warm home discount, which was announced by the government in June.
The scheme, which gives financial help to vulnerable households, will add around £15 to a typical bill while providing £150 of support to 2.7 million additional people, according to the prediction.
Read more about the scheme here…
Wholesale gas and energy prices have also been volatile, largely due to global conflicts and Donald Trump’s US trade policy, but have been on a general decline recently.
Dr Craig Lowrey, principal consultant at Cornwall Insight, says: “News of higher bills will not be welcomed by households, especially as winter approaches.
“While the added costs behind this forecasted rise are aimed at supporting those most in need, it does mean typical bills will increase despite relatively lower wholesale costs. It’s a reminder that the price cap reflects more than just the market price of energy.
“This immediate challenge underscores a broader uncertainty facing millions of households, with current forecasts suggesting a sharp drop in bills is unlikely in the near term.”
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Poundland warned that it would run out of money in days today before a multimillion-pound rescue plan was approved by a judge.
Barristers representing the budget retailer told the High Court in London that it would run out of money by 7 September if the restructure was not approved.
Tom Smith KC, for Poundland Limited, said the retailer’s financial position had “significantly deteriorated during the last two years” and that if the restructure was not approved, the company’s directors would likely place it into administration by Friday.
Sir Alastair Norris, the judge, approved the rescue, saying: “I am going to sanction the plan. I will give my reasons later.”
Founded in Burton upon Trent, Staffordshire, in 1990, Poundland has around 14,700 staff members and 800 stores.
In June, it confirmed plans to shut 68 stores after being sold for a nominal fee.
What’s in the restructuring plan?
In court, Smith said: “The plan will release a further £60m of funding, and that is in addition to the £30m that has already gone in following the purchase that took place on June 12.
“So, in effect, if you add everything up, Gordon Brothers is putting in £90m.”
As well as the store closures, which would put around 1,000 jobs at risk, Poundland also said it would close its frozen and digital distribution site at Darton, South Yorkshire, later this year.
Another warehouse at Springvale in Bilston, West Midlands, would be closed early next year.
A further 350 people will be affected by the warehouse closures, which are linked to the company’s plan to stop online sales through its Poundland.co.uk website.
Smith said the company was currently due to pay back £276.5m in loans by 1 September, which would be pushed back by three years under the restructuring plan.
It would also see the company provided with a £30m overdraft facility and have some of its rents reduced.
M&S is launching its first second-hand clothing site – and is offering customers money off their shop for donating old clothes.
The retailer is setting up a preloved marketplace on eBay as it looks to reduce textile waste.
Fifteen per cent of profits made through sales on the site will also be donated to Oxfam.
From today, customers will be given a £5 voucher to use when they spend £35 or more at the retailer for sending their preloved items to the take-back scheme.
Shoppers will have to complete a short form on M&S.com or scan a QR code in-store, then send their items to the company’s resale partner, Reskinned, using a free local courier service.
If your package includes an M&S labelled item, you’ll get the voucher, which you’ll have four weeks to use.
Items that can be worn again will be cleaned, repaired and listed on the eBay store for customers to purchase. Any that cannot be listed will be repurposed or recycled.
Monique Leewenburgh, director of sourcing and technology in fashion, home and beauty at M&S, said: “This not only offers more ways for customers to give items another life, but also an opportunity for customers to purchase items they might have missed from previous seasons – which are preloved.”
Apple TV+ has become the latest streaming service to increase its prices.
The platform has upped its monthly fees from £8.99 to £9.99 – that’s double the price it launched at six years ago.
The price of an annual subscription has stayed the same at £89.
If you are a new subscriber, you’ll have to pay the increased rate as soon as you sign up.
For existing subscribers, the new fee will apply to their next monthly bill.
Money has contacted Apple for comment.
Disney+, Netflix and Paramount+ have all upped their prices in the past year.
If you want to keep your Apple TV+ subscription, but don’t want to pay the new fee, there are some tactics you try…
Make the most of free trials
Existing customers on a rolling contract can cancel penalty-free and take up short-term free trials if they’re eligible. This is a temporary solution, but it will mean you can watch your shows for up to six months for nothing.
According to MoneySavingExpert, you can get up to six months free with certain EE, O2 and Virgin Media offers.
If you’ve recently purchased an Apple device, you might be able to get three months for free.
Apple offers a seven-day free trial for new customers, and Money found deals available for a month-long trial for new and existing customers.
Check your bank rewards
Some bank accounts offer Apple TV+ as a free perk for customers, so it’s worth checking if it’s something you can claim.
For example, Barclays Blue Rewards members or Premier customers get access for no charge – even if they’re already Apple TV+ customers.
Make sure you check all the terms and conditions of any new bank account you sign up for.
Committing could save you
If you know you can afford it and you’ll use Apple TV+ for a year, it’ll work out cheaper if you commit to an annual plan and pay upfront.
You’ll end up paying £89 for a year of access, instead of £119.88 if you pay monthly.
Rotate, rotate, rotate
It might sound like a hassle, but you could save by rotating your streaming services.
Just sign up for the one that has a show you are interested in and cancel it once you’re finished before selecting a new one.
The Sky News Money newsletter, now in its 13th week, brings the kind of content you enjoy here in the Money blog directly to your inbox for free.
Every Friday, subscribers get exclusive money-saving tips and features. Sign up today and here’s what you’ll find in the newsletter this week:
Royal Mail has temporarily suspended deliveries to the US due to changes made by Donald Trump.
The postal service is one of many across Europe to temporarily pause deliveries to the country while it prepares to follow new customs requirements coming into force on Friday.
Trump signed an executive order last month ending the global import tax exemption on low value parcels.
This means that from 29 August, goods shipped through the postal system will face one of two tariffs: either a duty equal to the tariff rate of the package’s country of origin or, for six months, a specific tariff of $80 to $200, depending on the country of origin’s tariff rate.
These fees must be paid by UK senders before they enter Royal Mail’s network.
People sending gifts valued at $100 or less will not have to pay a duty.
Royal Mail said consumer and business deliveries would be paused from today, while it sets up a new service before the rules take effect.
Royal Mail told Money: “We have been working hard with US authorities and international partners to adapt our services to meet the new US de minimis requirements so UK consumers and businesses can continue to use our services when they come into effect.
“We have temporarily paused existing services to the USA from today while we put a new service in place.
“Consumers sending gifts worth less than $100 will not have to pay duty.”
Australia Post, Swiss Post, DHL, Japan Post and Korea Post have all made similar moves in recent days due to the new rules.
The number of entry-level job vacancies has fallen to the lowest level in five years, a leading survey has found.
Roles spanning graduate jobs, apprenticeships and junior positions fell by 6.8% since the same time last year, according to job search site Adzuna.
It found entry-level roles now made up just 21.9% of all UK vacancies, with 209,778 starter jobs on the market in July – the lowest share recorded in the past five years.
Businesses have been warning for months that tax changes made in April and a national minimum wage rise would cause the number of roles in sectors popular with seasonal workers and students to fall.
Overall, vacancies fell across all regions last month, with the steepest monthly declines recorded in Northern Ireland and the South West.
Competition for jobs has grown as well, with an average of close to two job-seekers for every vacancy.
“After a hopeful uptick in June, July saw the pendulum swing back with vacancies falling again,” Andrew Hunter, co-founder of Adzuna, said.
He added: “While salary growth remains one of the few consistent positives – continuing to outpace inflation – hiring appetite is clearly uneven.”
What’s happened to salaries?
On the plus side, average advertised salaries have continued to climb, reaching £42,264 – up 8.76% in the past year.
Some regions have seen bigger increases than others, with Northern Ireland recording a 14.3% annual jump.
See the typical advertised salary for your region below…
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