UK Personal Finance News: July 2026

Inflation eased again in June, the Bank of England’s next rate call lands on 30 July, and savings rates are still holding up well for anyone using this tax year’s allowance. Here is what changed for UK savers in the middle of July and what it means for your money.

Inflation cools to 2.6% in June

The Office for National Statistics reported that CPI inflation slowed to 2.6% in the year to June 2026, down from 2.8% in May and below the 2.7% that economists had pencilled in. Cheaper motor fuel did most of the work, while services inflation stayed sticky at 3.7%. For savers this is the number that matters most, because a top easy-access account paying around 4.5% now beats inflation by a comfortable margin, so cash left in a fair-rate account is quietly gaining real value rather than losing it. The catch is services prices: until they cool, the Bank of England has a reason to keep rates higher for longer. Source: ONS consumer price inflation bulletin, June 2026.

The Bank of England decides on 30 July

The Monetary Policy Committee meets again on 30 July, and this is a big set-piece: the decision comes with a full Monetary Policy Report and a press conference. Markets put the odds of a hold at 3.75% at around 86%, but the vote is unlikely to be unanimous. Two members, Megan Greene and Huw Pill, voted to raise the rate to 4.00% in June, and Pill has since argued rates may need to rise. For savers the message is to stop waiting for much higher rates: the base rate is close to its likely peak for this cycle, so if you have been sitting on cash in a poor-paying account hoping for a jump, it is worth locking in a good rate now rather than holding out. Source: HomeOwners Alliance interest rate forecast.

Top cash ISAs now pass 4.8%

Savings rates have stayed resilient despite the rate cuts earlier in the year. As of 22 July the highest fixed-rate cash ISA paid 4.80% AER, from Vida Savings on a five-year fix, while the best easy-access ISA reached 4.62% with Plum. That is worth acting on this tax year in particular, because from 6 April 2027 the amount under-65s can put into a cash ISA drops to £12,000, so 2026-27 is the last year most savers can shelter the full £20,000 from tax in cash. If you have unused allowance and money you will not touch for a while, a fixed ISA locks today’s rate before any cuts. For the difference between the two account types, see our guide to cash ISAs versus stocks and shares ISAs. Source: Moneyfacts fixed-rate cash ISA charts.

The consultation on the ISA cash charge closes on 17 August

The Treasury’s technical consultation on the new 22% charge on cash interest earned inside a stocks and shares ISA closes on 17 August. The charge, due from April 2027, applies only to interest on cash held in an investment ISA, not to returns from funds, shares, bonds or ETFs, and it is aimed at people who park large cash balances in an investment wrapper to dodge tax. If that describes you, now is the moment to plan: hold your emergency cash in a cash ISA or a savings account instead, and keep your stocks and shares ISA for actual investments. New investors picking a wrapper for the first time can start with our guide to how to start investing in the UK. Source: GOV.UK ISA reform anti-circumvention rules factsheet.