Interest rates live: Bank of England expected to cut rate for third time this year
Markets are widely calling a cut from 4.25 down to 4 per cent, keeping the BoE on pace with the quarterly changes it has followed across 2025.
Should the MPC cut as expected, it will be the fifth cut since August 2024 when the Bank Rate – the formal term for the UK's primary interest rate – was at a peak of 5.25 per cent. However, some experts have issued concerns over cutting rates when inflation is running as hot as it is, with food inflation in particular increasing at the fastest rate in 18 months.
Elsewhere, Halifax released its latest UK house price data showing where property costs have risen fastest, while stock markets rose on Wednesday – the FTSE 100 is marginally up across the past week.
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The Independent
27 minutes ago
- The Independent
Households living near new pylons could get £250 a year off bills for a decade
Families living near new pylons would get a £125 discount on their energy bills every six months for a decade under Government plans to get electricity infrastructure built. New transmission cables and pylons are needed across Britain to upgrade ageing electricity networks, connect up new wind and solar farms, nuclear power plants and large scale battery storage, and reinforce the grid to cope with the planned rise in electric heat pumps and car charging in homes. The Government says around twice as much new transmission network infrastructure will be needed by 2030 as has been built in the past decade. But building new pylons and cables through the British countryside has faced a backlash, with homeowners and campaigners concerned about the visual impact and disruption to local areas and beauty spots. The Government has pledged to deliver clean energy by 2030, as part of efforts to boost the economy, cut climate emissions and reduce Britain's exposure to volatile fossil fuel prices. It hopes cash benefits to local people will reduce opposition and planning delays to the infrastructure needed to deliver the clean energy plans. The launch of the consultation comes alongside reforms which place new obligations on energy companies to improve smart meters, and improving connectivity across Scotland and northern England including rolling out 4G services to allow more households to benefit from getting meters installed. The Department of Energy Security and Net Zero is launching a consultation into proposals included in the Planning and Infrastructure Bill to provide payments to households affected by the new developments. Households within 500 metres (a third of a mile) of new or upgraded electricity transmission infrastructure could receive a discount of up to £250 via their electricity bill every year for 10 years, totalling £2,500. The discounts, which would be assigned to the home, and applied to the occupant, could be provided in instalments of £125 every six months. Minister for energy consumers Miatta Fahnbulleh said: 'As we build the infrastructure we need to deliver homegrown, affordable energy, communities must be given a stake. 'That is why we are teaming up with communities hosting new pylons to ensure they receive direct, tangible benefits. 'We are on the side of those who want Britain to get back to what it does best: building for the future, driving innovation and putting communities first.' Labour also accused opposition parties of backing higher energy bills by demanding cables be buried underground rather than attached to pylons. Describing this as 'ideological opposition' to pylons, the party pointed to analysis from the National Energy System Operator suggesting it would cost billions more and could raise household bills by up to £850. A Labour spokesperson said: 'Ideological opposition to vital energy infrastructure projects holds back our economy and pushes bills higher. Yet that is what Reform, the Tories, Lib Dems and Greens are doing when they oppose the infrastructure needed to get energy into people's homes and businesses.' Shadow energy minister Andrew Bowie said it was 'right that communities get some payback for pylons – with this scheme following initiatives started by the last Conservative government'. But he added that the public should 'be in no doubt' that more communities would see pylons built nearby 'as a consequence of Labour's net zero by 2050 zealotry'. Mr Bowie said the Government was now having to 'scramble to try and build the infrastructure needed to support their mad green projects' and urged more investment in nuclear power rather than solar. Proposals to improve smart meters from Ofgem, which are set to be introduced next year, include requirements to cut times for installation appointments and to fix meters that have stopped working in smart mode within 90 days – or provide consumers with automatic compensation. Officials said the measures would help households get lower bills through better management of their energy use and access to more flexible tariffs, such as paying less to use power off-peak or benefiting from free electricity offers when excess power is available on the grid. Charlotte Friel, director of retail pricing and systems at Ofgem, said: 'Millions of consumers rely on their smart meter every day for accurate billing, cheaper tariffs, automatic meter readings and real-time data to help keep track of spending. 'But we know many customers that want a smart meter wait too long to get one installed or face delays on repairs when it stops working – this needs to change. 'These new rules are about setting clear expectations of suppliers, incentivising them to boost smart meter standards, and protecting consumers from poor service if things go wrong.'
The Independent
27 minutes ago
- The Independent
Consumers set to get compensation for faulty smart meters and install delays
Households will be able to get compensation from suppliers for delays to smart meter installations and for those left in 'dumb' mode from next year, the energy watchdog has announced. Ofgem has unveiled proposals to bring in rules that will see consumers eligible for £40 compensation if they have to wait more than six weeks for a smart meter installation, as well as faulty meters and those not operating in smart mode which are not fixed within 90 days. It comes as part of a crackdown on broken smart meters, which has seen the regulator help enforce the repair or replacement of more than 600,000 faulty meters since July last year. founder Martin Lewis welcomed the proposals as he said 'likely one in five' smart meters are faulty. It is thought that millions of smart meters have been left in so-called dumb mode, where they have poor connectivity or stop automatically transmitting readings. Ofgem said that by extending rules to cover poor connectivity, it will mean more consumers can get compensation. Charlotte Friel, director of retail pricing and systems at Ofgem, said: 'Millions of consumers rely on their smart meter every day for accurate billing, cheaper tariffs, automatic meter readings and real-time data to help keep track of spending. 'But we know many customers that want a smart meter wait too long to get one installed or face delays on repairs when it stops working – this needs to change.' She added: 'These new rules are about setting clear expectations of suppliers, incentivising them to boost smart meter standards, and protecting consumers from poor service if things go wrong.' The plans mean that suppliers will need to improve smart meter standards or pay out from early 2026, according to Ofgem. Mr Lewis said: 'Far too many smart meters, likely one in five, don't work as they should – a problem not just for all the homes with broken ones, but for the smart meter rollout. 'With so many dissatisfied customers, word-of-mouth is bad, so people tell their friends and neighbours not to get one. 'We need to shift firms' focus from just installing smart meters to promptly fixing those that are broken – not just meters that go into dumb mode, but crucially all elements, including in-home displays that stop working.' Under the new rules, micro-businesses will also be able to get compensation for smart meter issues. Minister for energy consumers Miatta Fahnbulleh said: ' Consumers are at the heart of our mission to deliver an energy retail market that works for everyone, as we accelerate towards a clean, homegrown power system to protect households against global fossil fuel price spikes. 'That's why the Government is taking action, alongside Ofgem, to ensure families are better protected when they get a smart meter installed.' U-switch said its research found that one in five households with a faulty smart meter had been waiting more than two years to have their device fixed. Richard Neudegg, director of regulation at said: 'Building consumer confidence is key to convincing the remaining households to get a smart meter. 'These proposals by Ofgem bring more focus on getting faulty smart meters fixed, and give consumers the confidence to take the plunge.'
The Independent
27 minutes ago
- The Independent
Thousands living near new pylons to save £250 on energy bills as government gives update
Certain households will soon start receiving £250 a year off their energy bills as the government lays out plans to improve and upgrade Britain's electricity network. Those living near new pylons are set to benefit from the payments over 10 years, the Department for Energy Security and Net Zero (DESNZ) has confirmed. This will add up to £2,500 saved over the course of the scheme. The discount will come in the form of a £125 rebate every six months for those living within 500 metres of a new or upgraded electricity transmission infrastructure. It will be assigned to the home and apply to the occupant, so it cannot be transferred if people move to a non-eligible property. The government says those living in rural communities will likely benefit most from the plan. The East of England and Scotland in particular are earmarked for the most developments in the coming years. The plan is part of the government's Planning and Infrastructure Bill, which launches a consultation on 8 August. It aims to increase the amount of network infrastructure in the UK, which experts say needs to double by 2030 to meet demand. Minister for energy consumers Miatta Fahnbulleh said: 'As we build the infrastructure we need to deliver homegrown, affordable energy, communities must be given a stake. 'That is why we are teaming up with communities hosting new pylons to ensure they receive direct, tangible benefits. 'We are on the side of those who want Britain to get back to what it does best: building for the future, driving innovation and putting communities first.' Speaking about the plan earlier this year, housing minister Alex Norris said that households making the 'sacrifice of having some of the infrastructure in your community' should see that offset by getting some money back. The scheme comes alongside confirmation of new plans for smart meters, which can help households save substantial amounts on their energy bills. Energy suppliers will be set strict new obligations to improve the smart meter process under the plans. Enforced by Ofgem, they will see new requirements to cut waiting times for installation appointments and repairs, or for customers to be provided with automatic compensation. Charlotte Friel, director of retail pricing and systems at Ofgem, said: 'Millions of consumers rely on their smart meter every day for accurate billing, cheaper tariffs, automatic meter readings and real-time data to help keep track of spending. 'But we know many customers who want a smart meter wait too long to get one installed or face delays on repairs when it stops working – this needs to change. 'These new rules are about setting clear expectations of suppliers, incentivising them to boost smart meter standards, and protecting consumers from poor service if things go wrong.'
