September 2026 Newsletter | Cylchlythyr Misol Medi 2026
COST OF LIVING SPECIAL
1. The Bank of England recently held their base interest rate at 3.75%, however the writing is on the wall for sustained increases over the next 12-18 months. Analysts are predicting a base rate of 4.75% by the end of 2027. Much depends on what happens in the Middle East and as a result, to energy prices.
2. Have you fixed your energy tariffs? Bills are forecast to jump by 25% in January, adding an extra £430 to the energy price cap – make sure you keep shopping around. Prices could come down if the US-Iran war de-escalates, but if you want the security of knowing your monthly bills, a fixed-term deal could provide greater peace of mind.
3. Sub-5% mortgages are expected to be withdrawn from the market as HSBC, Halifax and Nationwide have already raised rates. Rates of 6% are even being discussed by some analysts. If you are buying or remortgaging, review your options with a mortgage broker.
4. The State Pension will rise by 3.9% in April as per the rules of the triple lock, an increase of £479 per year. This takes the new State Pension to just over £13,000 (more than the tax-free annual allowance of £12,570). The Government have confirmed that pensioners whose only income is the State Pension will avoid having to pay income tax (full details to be confirmed in the Chancellor’s Budget on 28 October).
5. Do you, or any family members, claim for attendance allowance from the Government? This is a non-means tested benefit for pensioners with a disability or health condition which means they need someone to assist them with daily tasks.
More than a million people are thought to be missing out on the allowance, which can be worth up to £114.60 a week. Free help to complete the application form (which can be quite long) is available from Age UK & Citizens Advice.
6. Do you have any children/grandchildren heading to university this month? A practical option to gift money may be via a Tesco student shopper card where the adult tops up the card by say £200 at a time and the student can use it for food.
John Healey’s first Budget as Chancellor will take place on 28 October 2026. If you are contemplating selling any assets, transferring property to family members, or considering making a one-off large personal pension contribution, you may wish to complete these before Budget Day!
