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Day Lila

Saturday, 3 October 2026

3 Oct · Money · In brief

Money · Saturday, 3 October 2026

Money, in brief

15 stories · 30 sources

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What is moving · 1 of 4

Fuel and heating bills rising

High ↑

Diesel at UK pumps passed 2 pounds a litre for the first time, at 200.01p. [11] Northern Ireland's biggest gas supplier, SSE Airtricity, raised its prices by almost 19% on Thursday. [20] Britain's cap on most household energy prices rose about 4% the same day. [10]

What is moving · 2 of 4

Others paying less of the bill

Building ↑

England's new formula cuts Hammersmith and Fulham's government grant by more than half. [1] The US government ended a subsidy that held down Medicare drug plan premiums a year early. [17] Six in ten US employers plan changes such as higher deductibles to cut their health costs next year. [16]

What is moving · 3 of 4

Laws making cheap drink and snacks dearer

Building ↑

Wales raised the lowest legal price for alcohol from 50p to 65p a unit on Thursday. [21] Large shops in Scotland can no longer sell sugary or fatty foods on multi-buy deals. [23]

What is moving · 4 of 4

Taxes reaching the richest

Building ↑

The US Treasury warned wealthy investors that one way of dodging tax with a new stock fund does not work. [27] Home prices in Westminster, one of London's richest areas, fell 25.4% in a year. [28] One estate agent blames rich people leaving Britain after a tax break for foreign residents ended. [28]

Part of the day's signal

One pressure seen across the day runs through Money too.

Hammersmith and Fulham warns its council tax may rise 150% as England's new funding formula cuts its government grant by more than half; Wandsworth has floated 94%

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Hammersmith and Fulham, a council in west London, says it may have to raise its share of council tax by 150% in 2027-28. [1]

Who is involved

Who is involved

Why it matters

Hammersmith and Fulham's report is published on Monday, and Wandsworth decides in February; the next thing to watch is whether the Conservatives' lawyers take the formula to court. [1][2][3]

What's really going on

England's government is moving grant money away from six low-tax councils in and around London and towards poorer areas such as Manchester and Bradford, and it has let those six raise council tax past the usual 5% limit. [5][6]

What's really going on

Hammersmith and Fulham and Wandsworth now say that means rises of 94% to 150%, and Wandsworth makes its final decision in February. [1][2]

Why it works on people

A rise of 94% sounds ruinous, but Wandsworth's Band D bill would still be about 1,978 pounds, below England's average of 2,392. [2][7] A big percentage on a small starting bill feels larger than it is in pounds.

Who gains

The new formula moves government money towards councils with more deprivation and more homes in low council tax bands. [5][6]

Who pays

The largest option adds 29.11 pounds a week to a Band D bill in 2027-28. [1]

Who pays

The rise it has floated adds 958 pounds a year to a Band D bill. [2]

Nobody knows yet

How much Hammersmith and Fulham will really raise council tax.

Its report sets out three options, 100%, 125% and 150%, and is only published on Monday. [1] Wandsworth will not decide its own rise until February. [2]

Nobody knows yet

Whether the Conservatives can stop the funding cut in court.

Kemi Badenoch says the party has only instructed lawyers to see whether the cut can be blocked. [3] Four councils are also consulting on using the Sustainable Communities Act to challenge it. [2]

The short version

That's the story in short.

The whole story has 13 more parts.

or swipe up for the next storyor scroll on for the next story ↓

The whole story, in 13 parts ↓

Part 1 of 13 · Who else is involved

Part 1 of 13 · Who else is involved

Part 2 of 13 · How it unfolded

Part 3 of 13

For a home in Band D, a middle-value home, that is 29.11 pounds a week more. [1]

Part 4 of 13

The council's report sets out rises of 100%, 125% or 150%, taking its share of a Band D bill to 2,018, 2,270.25 or 2,522.50 pounds a year. [1]

Part 4 of 13

Only the largest roughly balances its budget. [1]

Part 5 of 13

The reason is money from the UK government.

Part 5 of 13

Hammersmith and Fulham got 150.5m pounds in 2025-26, and that falls to 72.4m pounds over four years. [1]

Part 6 of 13

The cut comes from England's new council funding formula, which ministers call fair funding. [1]

Part 6 of 13

It moves government money towards councils with more deprivation and more homes in low council tax bands. [5]

Part 7 of 13

The old rules had last been updated in 2013. [5]

Part 7 of 13

Councils such as Manchester, Bradford and Birmingham, and outer London boroughs such as Haringey and Enfield, get more money under the new deal. [6]

Part 8 of 13

Wandsworth, in south-west London, has floated a rise of 94%, or 958 pounds a year for a Band D home. [2]

Part 8 of 13

It says it will lose 84m pounds a year of government funding by the end of three years. [2]

Part 9 of 13

Wandsworth's Band D bill is now 1,020.35 pounds, one of the lowest in the country. [2][3]

Part 9 of 13

The average Band D bill in England is 2,392 pounds in 2026-27. [7]

Part 10 of 13

Six councils may raise bills by more than 5% for two years without asking local voters first: Kensington and Chelsea, Westminster, Wandsworth, Hammersmith and Fulham, the City of London, and Windsor and Maidenhead. [5]

Part 11 of 13

Normally a rise above 5% needs a local vote, and no council has ever won one. [5]

Part 12 of 13

Kemi Badenoch, leader of the Conservative party, says it has instructed lawyers to see whether the cut to Wandsworth can be blocked. [3]

Part 13 of 13

The UK government says it is fixing an outdated system so that funding goes where need is greatest. [2]

Part 13 of 13

Hammersmith's Labour councillors say they kept bills low by cutting costs, and that the borough has poor areas too. [1]

Part 13 of 13

In December the UK government said these councils had large savings to draw on. [6]

Energy firms ask for winter help

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Energy UK, the trade body for Britain's energy suppliers, asked the UK government to act now on winter bills. [8]

The price cap, the maximum Ofgem lets suppliers charge per unit, rose about 4% on Thursday, to 1,723 pounds a year for a typical home. [10]

Forecasters expect it to reach 1,999 pounds in January. [8] VAT also came off electricity bills on Thursday, worth about 45 pounds a year to an average home. [9]

Energy UK says unpaid customer debt now adds 67 pounds a year to everyone's bill. [8]

Why it matters

John Healey, the chancellor, faces calls to add energy help to his Budget, but has warned that money to cushion global shocks is limited. [9]

Why it matters

Prime Minister Andy Burnham says he is looking at any measure that takes the pressure off. [8]

How it works

Why losing a grant can double a council tax bill

How it works

When the UK government pays a big part of what a council spends, halving that grant forces the households' share to rise by far more than half.

How it works · step 1 of 5

A council's services cost a set amount each year

How it works · step 2 of 5

The UK government pays part of it through a grant

How it works · step 3 of 5

Households pay the rest through council tax

How it works · step 4 of 5

The grant is cut, but the services cost the same

How it works · step 5 of 5

So the household share has to rise by far more, in per cent, than the grant fell

The twist

A low council tax bill does not mean cheap services.

The twist

In Wandsworth and Hammersmith, the UK government's grant paid for a big part of the services, and when the grant shrinks, households have to pay for that part instead.

The picture

Made-up numbers: a service costs 100 pounds. If the grant falls from 60 to 30 pounds, the household share goes from 40 to 70 pounds, a rise of 75%.

Seen the same day

Medicare drug plans lose their subsidy

The US government paid insurers to keep drug plan premiums down, and when that payment ends the people in the plans pay that share in higher premiums.

Seen the same day

US health cover set to cost more in 2027

Employers pay most of a worker's premium, and when they pay a smaller share through higher deductibles, the worker pays more for the same care.

Seen the same day

Energy firms ask for winter help

Energy UK says households that cannot pay leave debt that suppliers recover from everyone, adding 67 pounds a year to each bill.

The catch

A grant cut does not have to land in full on the bill.

The catch

A council can also cut services or spend its savings, and the UK government says these councils have large savings.

The whole

A family in Wandsworth sees its council tax bill but not the grant behind it, and a pensioner sees a drug plan premium but not the subsidy that held it down.

The whole

Many of the bills we all pay have another payer behind them, and we find out only when that payer stops.

Nobody knows yet

Whether the UK government will give households new help with energy bills this winter.

Andy Burnham says he is looking at any measure, but John Healey, the chancellor, warns that money to cushion global shocks is limited. [8][9]

Good news

VAT came off household electricity bills in Britain on Thursday, worth about 45 pounds a year to an average home.

UK diesel passes 2 pounds a litre

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Average UK pump price of a litre of diesel, in pence, from the RAC.

The average price of diesel in the UK reached 200.01p a litre on Friday, the first time above 2 pounds, the RAC motoring group said. [11]

It was 142.38p before the US-Israel war with Iran began in late February. [12][13]

Filling a typical family car now costs about 110 pounds, nearly 32 pounds more than before the war. [13]

The same day the G7, a group of seven rich countries, agreed to release 100 million barrels of oil and diesel over four months. [14]

Why it matters

Lorries and farms run on diesel, so its price feeds into the cost of moving food around the country. [12] Petrol rose too, to an average of 174.71p a litre. [11]

Who pays

Filling a typical family car now costs about 110 pounds, nearly 32 pounds more than before the war on Iran. [13]

Nobody knows yet

How much of Britain's diesel comes from the US.

The BBC puts it at about 17%, while the Guardian says about 30%. [12][13] The answer decides how much a US export ban would have hurt, and Donald Trump now says it was never really on the table. [14]

Burnham will change the pension rule by law

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Andy Burnham, the UK prime minister, will ask MPs to vote this parliament on changing the triple lock, the rule that raises the state pension each year. [15]

It now rises by the highest of 2.5%, prices or earnings. [15]

In future the earnings part will be adjusted so the pension does not jump in years when wages spike, though the old rule stays until 2030. [15]

The UK government says the change cuts pension spending by 15bn pounds a year by the late 2030s. [15]

Why it matters

Every party will have to say at the next election whether it keeps or reverses the change. [15]

Why it matters

The savings are meant to pay for a national care service in England, free when people use it. [15]

Nobody knows yet

How much the change to the pension triple lock will save.

The UK government says 15bn pounds a year by the late 2030s. [15] The Resolution Foundation says anything from nothing to about 24bn pounds, depending on which past decade the economy resembles. [15]

US health cover set to cost more in 2027

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Three US consulting firms expect employers' health costs to rise between 8.2% and 11.1% next year. [16]

Three firms' estimates of how much employers' health costs per US worker will rise in 2027.

Marsh puts the rise per worker at 8.2%, the largest since 2003, Aon at 9.5% and WTW at 11.1%. [16] About 166 million Americans under 65 get cover through work. [16]

Marsh found 59% of employers plan cost-cutting changes, such as higher deductibles, the amount a patient pays before insurance starts. [16]

Why it matters

Employers paid more than 20,000 dollars a worker towards cover in 2025, and experts expect them to pass some or all of the extra cost to workers. [16]

Why it matters

Insurers selling to people without work cover, on the Affordable Care Act marketplace, have asked for a median rise of 15%. [16]

How it works

US health cover set to cost more in 2027

Employers pay most of a worker's premium, and when they pay a smaller share through higher deductibles, the worker pays more for the same care.

The idea, in story 2: Why losing a grant can double a council tax bill →

Who pays

Six in ten employers plan changes such as higher deductibles, so workers pay more before their insurance starts. [16]

Medicare drug plans lose their subsidy

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From January, the US government stops paying a subsidy that held down premiums for Medicare Part D, the private drug plans that people on Medicare buy. [17][18]

It was meant to last through 2027 but ends a year early. [17] About 23 million people had a stand-alone Part D plan in 2025. [17]

For 2027 the highest deductible a plan may charge rises from 615 to 700 dollars. [18]

The yearly cap on what a patient pays for drugs rises from 2,100 to 2,400 dollars. [18]

Why it matters

Mehmet Oz, who runs the US agency for Medicare, says most people will pay less than 10 dollars more in premiums next year. [17]

Why it matters

An official told the Wall Street Journal that 45% of members will see rises of 11 to 20 dollars a month. [19]

Why it matters

Members can change plans from 15 October to 7 December. [18]

How it works

Medicare drug plans lose their subsidy

The US government paid insurers to keep drug plan premiums down, and when that payment ends the people in the plans pay that share in higher premiums.

The idea, in story 2: Why losing a grant can double a council tax bill →

Who gains

The subsidy cost an estimated 9.8bn dollars over 2025 and 2026, and ending it a year early stops that spending in 2027. [17]

Who pays

The subsidy that kept their premiums down ends in January. [17]

Nobody knows yet

How much Medicare drug plan premiums will rise in 2027.

Mehmet Oz says most people will pay less than 10 dollars more, while an official told the Wall Street Journal that 45% of members face 11 to 20 dollars a month more. [17][19] Each plan's own premium has not been published yet. [18]

Northern Ireland's gas and power bills rise

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SSE Airtricity, Northern Ireland's biggest gas supplier, raised prices by almost 19% on Thursday for 200,000 homes and small businesses. [20]

A typical household in greater Belfast pays almost 172 pounds a year more. [20] Firmus energy raised prices by 8.98% in ten towns, and Share Energy raised electricity prices by 12.6%. [20]

Northern Ireland is not covered by the price cap, which applies in England, Scotland and Wales. [10]

Why it matters

SSE Airtricity blames volatile global markets and higher wholesale gas prices, which have roughly doubled in the UK since the war on Iran began. [20]

Why it matters

A Marie Curie nurse says some dying patients have turned down services that could help them, because they cannot pay their electricity bills. [20]

Who pays

A typical household in greater Belfast pays almost 172 pounds a year more after a rise of almost 19%. [20]

Part of a signal

Fuel and energy getting dearer

Also seen in World, Climate, Food and Finance.

The whole signal →

Wales raises the lowest price for alcohol

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On Thursday the lowest legal price for each unit of alcohol in Wales rose from 50p to 65p, matching Scotland. [21] Wales first brought in a minimum price in 2020. [21]

A can of lager once sold for 1 pound must now be at least 1.30 pounds. [21]

The cheapest a can of lager can legally be sold for in Wales, before and after Thursday.

A bottle of whisky once sold for 14 pounds must be at least 18.20 pounds. [21] Drinks already sold above the floor, like a pint in a pub, do not change. [21]

Why it matters

The Welsh government says inflation had made the 50p floor less effective, and that research it paid for suggests the rise could prevent more than 900 deaths over 20 years. [21][22]

Why it matters

The Welsh Conservatives say it hits hard-pressed people who do not have a drinking problem. [21][22]

Scotland ends multi-buy deals on junk food

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Shops in Scotland with more than 50 staff can no longer sell foods high in fat, sugar or salt on multi-buy offers, such as three for the price of two. [23]

They cannot put them at entrances, checkouts or the ends of aisles either. [23] Half-price discounts are still allowed, and meal deals are exempt. [23]

England banned such offers in October 2025 and Wales followed in March. [23]

Why it matters

The Scottish government says two in three adults in Scotland are overweight or obese, with the poorest areas worst affected. [23]

Why it matters

Multi-buy offers that included extra loyalty points are banned as well. [23]

More time for a US student loan rate cut

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The US Education Department gave federal student loan borrowers until 31 December to sign up for automatic payments and get a full percentage point off their interest rate. [24]

The deadline had been the end of Wednesday. [24] Nearly 2 million borrowers have signed up since the summer, and the cut lasts until 30 June 2028. [24]

Signing up for autopay usually cuts the rate by only 0.25 percentage points. [24]

Why it matters

More than 42 million Americans owe student loans, and the average federal rate is 6.54%, according to the expert Mark Kantrowitz. [24]

Why it matters

Older loans from a different federal programme, and private loans, do not qualify. [24]

Good news

Nearly 2 million US federal student loan borrowers have signed up for automatic payments that take a full percentage point off their interest rate, and the deadline to join has moved to 31 December.

Trump Accounts may get money by mid-October

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Up to 25 million Trump Accounts could receive money by mid-October, Frank Bisignano, the head of the US tax agency, said on Friday. [25]

The accounts are new US government savings accounts for children, and more than 60 million children were signed up automatically this week. [26][25]

Children born from 2025 to 2028 can claim 1,000 dollars from the US Treasury, but families must claim it. [26]

About 72 companies have pledged to add money for their workers' children. [25]

Why it matters

Bisignano did not say whether he meant government grants or family and employer payments, so how many children actually receive money is not clear. [25]

Why it matters

The figures arrive about a month before the US midterm elections. [26]

Nobody knows yet

Who will actually get money in Trump Accounts by mid-October.

Frank Bisignano said up to 25 million accounts could be funded, but did not say whether he meant government grants or payments from families and employers. [25]

Good news

About 72 US companies have pledged to put money into the Trump Accounts of their workers' children.

US closes a share-swap tax dodge

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The US Treasury and tax agency warned this week that one way wealthy investors avoid tax on shares does not work. [27]

The investor puts shares that have risen a lot into a newly made fund, then swaps out for a different mix without paying tax on the gain. [27]

Treasury Secretary Scott Bessent said these conversions do not work under existing law. [27]

A Bloomberg analysis in July found 22bn dollars of such funds, putting off tax on up to 6.5bn dollars of gains. [27]

Why it matters

Setting up such a fund can cost 200,000 to 300,000 dollars, so it is used by people with tens of millions in shares. [27]

Why it matters

The guidance does not say how soon after a swap counts as too soon, so tax advisers expect more rules. [27]

Who gains

Its warning on share-swap funds targets a method that, by one count, put off tax on up to 6.5bn dollars of gains. [27]

Nobody knows yet

How soon after a share swap the US tax agency will call it a dodge.

The new guidance says transfers made shortly afterwards are suspect, but it does not say how short that is. [27]

London's priciest homes keep falling

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Prices of the most expensive homes in London are falling, the Guardian reports. [28]

In the year to June, homes in inner London fell 8.3% while UK prices rose about 2%, ONS figures show. [28]

In Westminster they fell 25.4%, in the City of London 20.4%, and in Kensington and Chelsea 14.7%. [28]

How far home prices fell in the year to June, by area, from ONS figures reported by the Guardian.

Prime homes now sit unsold for 186 days on average, and sell for 10.4% less than sellers first asked. [28]

Why it matters

Westminster, the City and Kensington and Chelsea are three of the six councils losing grant and allowed bigger council tax rises. [5]

Why it matters

Savills, an estate agent, estimates that owners who bought at the peak face losses of up to 25%. [28]

Who gains

Prime homes now sell for 10.4% below the asking price on average, up from 8.3%. [28]

Annuity sales hit a US record

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Americans bought 228.7bn dollars of annuities in the first half of 2026, a record for a first half, according to LIMRA, an insurance research group. [29]

An annuity is a contract where an insurer turns a lump sum into a guaranteed income. [29] Sales rose 2.2% in the second quarter, to 121.2bn dollars. [29]

Insurers pay more on annuities when interest rates rise, because they earn more on the bonds they buy. [29]

Why it matters

The best five-year fixed annuity paid 6.55% on 1 October, according to My Annuity Store figures cited by Kiplinger. [29]

Why it matters

Money in an annuity is usually locked away for years, or for life. [29]

Who gains

Higher interest rates let them offer bigger payouts, and Americans bought a record 228.7bn dollars of annuities in the first half of 2026. [29]

Robbers force a crypto transfer at home

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Three masked men broke into a home in Solihull, England, beat a businessman with hammers and threatened his pregnant wife until he sent them his crypto savings. [30]

The attack was in December, and the couple spoke to the BBC this week. [30]

The research firm Chainalysis counts 30m dollars stolen in violent crypto robberies in the first half of 2026. [30] Crimestoppers is offering a 10,000 pound reward. [30]

Why it matters

Crypto held in a person's own wallet moves fast and is very hard to get back once sent, which makes its owners a target at home. [30]

Why it matters

Their baby survived and was born at full term. [30]

That's the whole Money day.

15 stories, 30 sources.