Week of 5 October 2026
Energy bills changed on 1 October, with the price cap up 4% but VAT on electricity cut to zero. Greggs' sales are up while about 740 jobs are set to go, and crypto firms can now apply for full FCA regulation. Plus a chart of how fast the economy has grown, and this week's interview question.
By Kinza 3 min read Facts checked 6 Oct 2026 How I check
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Energy bills changed on 1 October: the cap went up, and VAT came off electricity
On 1 October the energy rose by 4%. For a typical household paying by Direct Debit for gas and electricity, that takes the yearly bill from £1,663 to £1,723: £60 more, or £5 a month. Ofgem, the energy regulator, blames higher gas prices caused by the conflict in the Middle East. On the same day, on electricity in Great Britain fell from 5% to 0% until 31 March 2027. Ofgem says that without the VAT cut the cap would have been about £45 a year higher. The cap covers around 22 million households on ; the roughly 11 million on fixed deals are not affected by the rise.
What it means
Price cap
The most an energy supplier can charge for each unit of gas or electricity you use, and for the daily standing charge. Ofgem, the energy regulator, sets it every three months. It does not cap your total bill: use more energy and you pay more.
Source: OfgemWhat it means
Wholesale price
What energy suppliers pay when they buy gas and electricity on the open market, before selling it on to homes. It is one of the costs Ofgem, the energy regulator, uses to work out the energy price cap.
Source: OfgemWhat it means
VAT
Short for Value Added Tax: a tax added to the price of most things you buy. The standard rate is 20%. Some things have a reduced rate of 5%, such as children's car seats, and some are zero-rated, such as most food and children's clothes.
Source: GOV.UKWhat it means
Standard variable tariff
An energy deal where the price of each unit can go up or down with the energy market. This is the kind of deal the energy price cap protects. If you have agreed a fixed tariff with your supplier instead, the cap does not cover you.
Source: Ofgemwhat it means for you
What changed
£1,663 → £1,723
the yearly bill for a typical household on a standard tariff, paying by Direct Debit. That is £60 more, or £5 a month.
A cap on prices, not bills
26.32p
per unit of electricity (a kilowatt hour) under the new cap. The cap limits the price of each unit and the daily standing charge. Use more, pay more.
The tax cut
0% VAT
on electricity in Great Britain until 31 March 2027, down from 5%. Ofgem says the cap would have been about £45 a year higher without it.
Before you use anything
54.83p a day
is the electricity standing charge: about £200 a year just for being connected, before you switch anything on.
Why bills rose
Gas
Ofgem says higher wholesale gas prices, caused by the conflict in the Middle East, are behind the rise. The next cap, for January to March, is announced by 25 November.
Cap figures: Ofgem, for a typical household paying by Direct Debit for gas and electricity, 1 October to 31 December 2026. VAT: HM Revenue and Customs. The £200 a year is 54.83p × 365 days.
£1,723
Energy price cap, 1 Oct to 31 Dec
Sources
- Ofgem · Energy price cap will rise 4% from October 2026 (press release, 26 August 2026)
- Ofgem · Unit rates and standing charges from 1 October, and the date of the next announcement
- HM Revenue and Customs · Temporary zero rate of VAT for domestic electricity in Great Britain, 1 October 2026 to 31 March 2027
- HM Treasury · Energy bill tax cut starts today, 1 October 2026
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Greggs' sales are up 7.7%, but it plans to close four bakeries
Greggs said on 30 September that total sales rose 7.7% in the 13 weeks to 26 September, compared with the same weeks last year. Like-for-like sales, which compare its own shops with the same period in 2025, rose 3.4%. It has opened 95 shops and closed 38 so far this year, taking it to 2,796. On the same day it began consulting on closing four of its manufacturing sites, which could make about 740 roles over two and a half years. The changes would cost about £60 million up front and save about £20 million a year, with the savings arriving in 2028 and 2029. Greggs now expects a "modestly improved outcome" for 2026.
What it means
Redundancy
A way of losing your job that happens when an employer needs fewer workers. Someone being made redundant may get redundancy pay, a notice period (a warning of when the job will end) and a consultation with their employer.
Source: GOV.UKwhat it means for you
Two growth numbers
7.7% vs 3.4%
Total sales grew 7.7%. Like-for-like sales, which compare Greggs' own shops with the same weeks last year, grew 3.4%. The gap is a clue to how much of the growth comes from opening new shops.
Jobs
740
roles could go as Greggs consults on closing four of its bakeries over two and a half years.
Shops
2,796
Greggs shops on 26 September. It has opened 95 and closed 38 so far this year.
The sums
£60m → £20m
about £60 million to make the changes, to save about £20 million a year once they are done, in 2028 and 2029.
Outlook
Modestly improved
is what Greggs now expects for 2026, thanks to better trading and tight control of costs. Analysts read those two words as a small upgrade.
All figures are from Greggs' third-quarter trading update of 30 September 2026.
740
Roles that could go
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Crypto firms can now apply to be fully regulated by the FCA
From 30 September, firms can apply to the for . Firms that want to keep operating in the UK should apply by 28 February 2027, before the new rules come into force on 25 October 2027. The FCA says authorisation is not automatic: firms must show they meet its standards on protecting consumers, looking after customers' assets, keeping markets fair and staying financially sound. Its warning for anyone buying crypto has not changed: be prepared to lose all your money, and do not expect the to cover losses.
What it means
Crypto
Short for cryptoassets: digital records of value, secured by encryption (scrambling information with secret codes). The FCA, the UK's financial watchdog, calls crypto high risk. It says you should be prepared to lose all your money, and you are very unlikely to get compensation if things go wrong.
Source: Financial Conduct AuthorityWhat it means
FCA
Short for Financial Conduct Authority: the UK's watchdog for financial firms such as banks and lenders. It sets the standards they must meet and holds them to account if they don't.
Source: Financial Conduct AuthorityWhat it means
Authorisation
Permission from the FCA, the UK's financial watchdog, to offer financial services. Most firms that provide financial services need to be authorised by the FCA or registered with it.
Source: Financial Conduct AuthorityWhat it means
Financial Services Compensation Scheme
A free safety net for customers of financial firms. If a firm you used, such as a bank, goes bust and can't pay what it owes you, the scheme can step in and pay you compensation.
Source: Financial Services Compensation Schemewhat it means for you
What changed
30 Sept
is when crypto firms could start applying to the FCA to be authorised. The new rules themselves do not take effect until 25 October 2027.
Regulated isn't risk-free
Lose it all
The FCA's advice is unchanged: if you buy crypto, be prepared to lose all your money.
No safety net
No FSCS
The scheme that protects money in a bank account is highly unlikely to cover crypto losses, the FCA says.
The deadline
28 Feb 2027
is when firms that want to stay in the UK should have applied. Those that cannot meet the standards will not be authorised.
What authorised means
Standards
To be authorised, a firm must show the FCA it protects customers, keeps their assets safe, trades fairly and has enough money to stay afloat.
FCA press release of 30 September 2026, and the FCA's consumer page on cryptoassets.
25 Oct 2027
New crypto rules take effect
Chart of the week
How fast the UK economy has grown, quarter by quarter
Each point is the change in GDP, the value of everything the UK produces, compared with the quarter before. April to June 2026 came in at 0.5%, revised up from 0.4% as more data arrived. In the same release the ONS revised growth for the whole of 2025 down to 1.2%. First estimates are never final, which is why analysts wait for the revisions before drawing conclusions.
View the data Hide the data
| Date | Value |
|---|---|
| Jul to Sep 2023 | -0.2% |
| Oct to Dec 2023 | -0.3% |
| Jan to Mar 2024 | 0.7% |
| Apr to Jun 2024 | 0.6% |
| Jul to Sep 2024 | 0.2% |
| Oct to Dec 2024 | 0.4% |
| Jan to Mar 2025 | 0.6% |
| Apr to Jun 2025 | 0% |
| Jul to Sep 2025 | 0.2% |
| Oct to Dec 2025 | 0% |
| Jan to Mar 2026 | 0.6% |
| Apr to Jun 2026 | 0.5% |