Truss resists pressure to publish financial forecasts early

1. The prime minister and chancellor are resisting pressure to publish an independent verdict of their tax-cutting plans before late November
2. Liz Truss and Kwasi Kwarteng met the head of Britain's independent financial forecaster, the Office for Budget Responsibility, after days of market turmoil
3. The PM told the OBR she values their "scrutiny", the Treasury said, but will not publish their fresh forecast before more economic plans are set out in November
4. Earlier, the pound hit $1.12 against the dollar - close to its level before Friday's mini-budget
5. The government's announcement last week had led to a slump in the value of the pound and a £65bn intervention from the Bank of England
6. Meanwhile, energy prices will rise for millions from tomorrow - but the increase is being cushioned by a government cap on the cost of energy per unit

Thanks for joining us

We're going to end our live coverage for the day - you can read our full story of the day here.

Updates were brought to you by Adam Durbin, Emily McGarvey, Anna Boyd, Dearbail Jordan, and Kate Whannel.

The page was edited by Alex Therrien and Dulcie Lee.

Four key points from today

We're going to wrap up our live coverage shortly, so let's take a look at four key moments from today:

PM and chancellor meet watchdog

Liz Truss and Kwasi Kwarteng met the head of Britain's independent financial forecaster, the Office for Budget Responsibility (OBR) this morning.

This rare meeting was called after days of market turmoil, where the PM told the OBR she values their "scrutiny".

Treasury resists early forecast pressure

But following the meeting, the government resisted pressure to publish an independent verdict of their tax-cutting plans from the OBR earlier than planned.

Pound's volatility continues

Earlier, after days of volatility the pound hit $1.12 against the US dollar - close to its level before Friday's mini-budget - but has since fallen slightly.

The tax-cutting plans announced on Friday caused initial chaos in the currency markets, with the pound plunging to its lowest ever level.

Economy grew slightly, despite initial prediction

In a slightly positive sign for the UK's financial outlook, a new estimate has found the economy grew very slightly last quarter.

Economic output rose by 0.2% between April and June, up from an early prediction of a -0.1% fall - so the UK is not yet in a recession, which is defined as two quarters (or six months) of contraction.

However, the these figures also show that UK economic growth is 0.2% lower than it was in the final quarter of 2019 before the Covid pandemic.

Pound's value continues to dip and resurge

The value of the pound against the US dollar has continued to fluctuate today, after days of volatility since last week's mini-budget.

As of around 16:30 BST the pound was trading at $1.1146, trending down again following a rally this morning where the exchange rate returned to around $1.12 - close to what it was before the mini-budget.

BBC

You can track the value of sterling against other currencies here.

Varied views on Truss from Tory voters

Let's see how some Conservative members and voters are feeling ahead of the party's conference this weekend.

Retired banker Philip in Telford has been a lifelong Conservative voter but feels the mini-budget “beggars belief”.

“It’s irresponsible to make the rich richer by removing the 45% tax rate,” he says, “it’s morally reprehensible we’re doing this when public services are crying out for more money.”

“If there were an election tomorrow, I would vote Labour. They’ve stolen the centre ground and good luck to them.”

Anna

Anna in Oxford is a Young Conservative member and will be attending the Tory Party conference in Birmingham this weekend.

She says despite not being “the biggest Liz Truss supporter”, she respects the prime minister for "standing her ground" and making "politically controversial calls that Boris Johnson failed to do".

“We need someone to turn this country around and rectify the mistakes of the last administration,” she says, adding: “I think Liz Truss has a massive job on her hands”.

Education secretary 'perplexed' by market response to mini-budget

PA Media

Kit Malthouse said Liz Truss had "advertised" the changes she would make as prime minister

The education secretary says he is "perplexed" by the market's response to Chancellor Kwasi Kwarteng's mini-budget last Friday.

Kit Malthouse told the BBC's Political Thinking with Nick Robinson podcast that he believed Liz Truss had "advertised" the changes she was going to make during the Conservative leadership race.

He said he had thought it would be "a given" that the markets assumed the Conservatives would act in a fiscally responsible way.

Malthouse said the prime minister has moved "extremely swiftly" to fulfil some of the pledges she made during the leadership election campaign.

"Maybe it wasn't picked up enough, but certainly she said she was going to move within seven days and that's what she did so," he said.

"While obviously the market reaction is something that we have to pay attention to and understand and address, and I know that the Treasury and Bank of England are working closely together, I remain surprised that people are surprised."

What has happened today?

If you're just joining us, let's take a look at a summary of the day's events:

• The government is resisting calls to publish an independent report on the cost of their tax-cutting plans before late November
• It comes after an rare meeting with between Prime Minister Liz Truss, Chancellor Kwasi Kwarteng and the government's financial watchdog over the impact of last week's mini-budget on the markets
• The Office for Budget Responsibility (OBR) confirmed it will deliver its first draft of a forecast next Friday
• But the forecast won't be made public until 23 November - when Kwarteng is due to reveal his medium-term fiscal plan to outline how increased borrowing and tax cuts will be paid for
• Earlier, the pound rose against the US dollar to hit $1.12 - close to its level before Friday's mini-budget
• Meanwhile, the UK's economy grew in the second quarter of this year, contrary to an initial estimate of a small contraction, according to revised official data

• The new energy price cap is set to kick in from Saturday, with the typical household bill due to hit £2,500 - however, bills aren't capped - the price of energy per unit is

More help to understand the energy crisis

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We're wrapping up our Q&A session with personal finance correspondent Kevin Peachey here - we hope it answered some of your questions about rising energy bills.

If you're still looking for more:

• Find out what the government's energy plans means for you here
• Learn about what the energy price cap means here
• Check out three things to do before your bills rise here
• See how you can cut your energy bills with better home insulation here

Can the pain be eased for prepayment customers?

Kevin Peachey

Personal finance correspondent

Jarred Spiller says: I'm on a prepayment meter - can I buy my gas before the increase as the energy companies do?

If you have a prepayment meter it has been much harder to smooth out the price rises over the summer and winter, because you pay for energy as you use it.

Some, but not all, customers who load a prepayment energy card in a shop might be able to top-up at today's lower price, before it goes up tomorrow.

Those on smart meters will be unable to do that.

Bills still doubling from last winter, despite support

Despite the government's large support package, energy prices will still be roughly twice as high as last winter.

Last year's price cap of £1,277 for an average household is rising to £2,500, which charities warn will leave many struggling. (Remember, the cap is for individual units of electricity and gas - there's no cap to your overall bill.)

People paying by direct debit tend to build up credit during the warmer, lighter summer months which then funds some of their extra use during the winter.

But the squeeze will be particularly acute for those on prepayment meters, who pay for energy as they use it, and so have largely been unable to smooth out increased bills over the year.

I use heating oil - what about me?

Kevin Peachey

Personal finance correspondent

John Chester asks what help is available for people who use heating oil.

There are lots of people, often in rural communities and particularly in Northern Ireland, who use heating oil.

These homes are not covered by the new cap, or energy price guarantee.

However, the government has said you will receive a £100 payment, which some campaigners have described as insufficient.

This comes from a separate pot of money earmarked to cover payments to various groups outside of mainstream energy connections, such as those in mobile home parks.

Tips for saving money on your energy bills

To help with spiralling costs, homeowners and renters can make a number of small changes to ease energy bills.

Take a look at some tips below:

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You can find more money-saving tips here.

Have pensioners been forgotten?

Kevin Peachey

Personal finance correspondent

Lesley Richardson wants to know what help is available for pensioners to pay energy bills.

The good news for Lesley and others receiving their state pension is that there is one cost-of-living payment targeted directly at you.

In November or December, an extra £300 will be added to the winter fuel payment, which is already paid to almost all pensioners across the UK.

Those on low-incomes receiving Pension Credit are getting a separate £650 cost of living payment - the first instalment of which has already been paid.

As for the state pension itself, we will have to wait a little longer before we know exactly how big the increase will be in April.

Truss to appear on Laura Kuenssberg's show on Sunday

Prime Minister Liz Truss is to appear on the BBC's Sunday morning politics programme this weekend following a tumultuous week in her premiership.

Truss will face questions from Laura Kuenssberg as the Conservative Party conference begins in Birmingham.

It comes after a series of difficult local BBC radio interviews on Thursday, when the PM faced criticism for the recent economic turmoil.

Shadow chancellor Rachel Reeves will also be on the show.

You can watch the interviews at 08:30 on Sunday 2 October on BBC One and BBC iPlayer.

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Three things to do before your bills rise

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Most households will see their energy bills rise from tomorrow, as the new energy price guarantee comes into effect.

A typical household's energy bill will rise from £1,971 to £2,500 - that's double what it was last winter.

So what can you do to prepare?

1. Check your meter readings. Without your readings, suppliers estimate usage which means your bills could be too high.
2. Claim what you're entitled to. Find out how to do that here.
3. Contact your supplier if you can't pay. If you are in debt to your energy company, you might be able to get a grant to help pay it off - get more information here.

How can I handle extra costs as I have a disability?

Kevin Peachey

Personal finance correspondent

Billy has a disability and says he uses extra electricity to power essential appliances, and believes there should be more support.

Many people with disabilities have higher energy costs because they may have to heat their home more, or power things like lifts.

A payment of £150 should just have been made, automatically, by the government to people on certain disability benefits.

The charity Scope says this "won't touch the sides" of the extra costs disabled people face, and has called for more, targeted, support.

You can find out more about what support is available here.

Are students getting any help?

Kevin Peachey

Personal finance correspondent

Richard Andrews asks about what help is available to university students.

A recent survey by the website Save The Student suggested that more than eight in 10 of students were concerned about making ends meet, with the average maintenance loan falling short of living costs.

Some had considered dropping out owing to money worries, the findings suggested.

Those living in rented accommodation should benefit from the £400 energy rebate going to all billpayers.

The government says it will legislate to ensure the discount is passed on to tenants - even if they pay all-inclusive bills to their landlord.

Groups representing landlords say the proposed law "demonises" the sector, because it did not allow landlords to show they could be trusted to do the right thing.

When will I get my cost-of-living payments?

Kevin Peachey

Personal finance correspondent

Lesley Rees asks why there is no confirmed date for the second cost-of-living payment.

Lesley is referring to the second instalment going to eight million low-income households receiving certain benefits.

The first chunk of £326 was paid automatically during the second half of July.

So far, the government has only said that the second instalment of £324 will be paid in the "autumn" for the vast majority of those eligible, or in the "winter" for those who qualify through tax credits.

It is yet to provide exact dates.

You can read my guide on all the cost-of-living payments here.

How is the £2,500 typical bill worked out?

Kevin Peachey

Personal finance correspondent

Lesley says she and her husband live in an old house in the north of Scotland and might have to pay £800 a month for energy. She'd like to know where the government is getting this average yearly bill of £2,500.

This is a really important question. The cap - or energy price guarantee - does not mean you cannot get an energy bill of more than £2,500 a year.

The more energy you use, the more you pay.

It is in fact the price of each unit of energy that is capped.

That is illustrated by showing what a household using a typical amount of gas and electricity will pay, including standing charges - which is £2,500 a year.

For reference, that calculation of typical usage comes from the energy regulator Ofgem, and is 12,000 kWh (kilowatt hours) of gas a year, and 2,900 kWh of electricity a year. So it is worth checking how your usage compares.

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We're answering your questions on energy bills

Our personal finance correspondent Kevin Peachey is answering your questions now on the new energy price cap, as bills are set to rise for millions from tomorrow.

Stick with us for answers to key questions in the minds of many consumers as we head towards winter.

What energy bills help is the government offering?

The UK has seen days of see-sawing in the pound's value, fears over the stability of pensions and a significant rise in the cost of government borrowing. But how did we get here?

It's worth remembering that among the disruption to financial markets, a large portion of what the government laid out last Friday was not tax cuts, but much-needed support for the spiralling cost of energy.

Energy prices will still rise for millions of households from tomorrow, but the increase has been cushioned by a government cap on the cost per unit of electricity and gas.

It stepped in after an 80% increase in domestic bills was earmarked for the first half of winter.

A typical annual bill will go up from £1,971 to £2,500, with additional cost-of-living payments due to provide more help.

However, this is not a hard cap on energy costs, people can and will pay more if they use more energy than an average household.

We'll be answering all your questions about the energy price cap shortly - stick with us.