October UK household money changes from bills to the budget

But that is not the only thing set to change in October.

There is further uncertainty around the economy with Rachel Reeves set to deliver her first Budget as Chancellor later this month.

While banks are changing their rules, and stamp prices are on the rise again.

These are the major changes coming in October you need to be aware of.

Ofgem Price Cap

Energy bills are set to rise by £149 for the average household in October after Ofgem announced it would be raising its energy price cap.

The new price cap figure will be £1,717 from October 1, up from £1,568 previously.

The cap does not set the maximum a household will pay for their energy but limits the amount providers can charge them per unit of gas or electricity, so those who use more energy will pay more.

Jonathan Brearley, chief executive of Ofgem, said: “We know that this rise in the price cap is going to be extremely difficult for many households.

“Anyone who is struggling to pay their bill should make sure they have access to all the benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support.”

Stamp Price Increase

Royal Mail has announced a 30p increase in the price of a first class stamp, explaining the “urgent” financial challenge it faces.

The price of first class stamps will increase to £1.65 on October 7 while second class stamps will remain at 85p.

First class stamp prices increased by 10p to £1.35 in April and by 10p to 85p for second class.

Nick Landon, Royal Mail’s chief commercial officer, said: “We always consider price increases very carefully. However, when letter volumes have declined by two-thirds since their peak, the cost of delivering each letter inevitably increases.

“A complex and extensive network is needed to get every letter and parcel across the country for a single price – travelling on trucks, planes, ferries and in some cases drones before it reaches its final destination on foot. We are proud to deliver the universal service, but the financial cost is significant.

“The universal service must adapt to reflect changing customer preferences and increasing costs so that we can protect the one-price-goes anywhere service, now and in the future.”

New fraud rules for banks

A number of high street banks voluntarily give money back to customers when they have fallen victim to scams.

However, from October 7, the process will become mandatory for all high street banks, with the Payment Systems Regulator (PSR) announcing that victims of scams worth up to £85,000 would be refunded.

The PSR said this £85,000 cap would cover 99% of claims from customers.

Inflation

The Office for National Statistics (ONS) will release the latest inflation data on October 16, revealing how prices are changing over time.

UK inflation unexpectedly eased in August as a drop in hotel and air fare costs and a slowdown in food price rises helped offset a jump in fuel costs, according to official figures.

The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation was 6.7% in August, down from 6.8% in July.

It marks the lowest rate since February last year.

Budget

Rachel Reeves will deliver her first Budget as Chancellor on October 30.

Chancellor Rachel Reeves said she was “under no illusion about the scale of the challenge” the country faces, and that “change will not happen overnight”.

In September, she told the BBC the Budget would involve “difficult decisions” on tax, spending and benefits.