UK households are facing increased expenses this year, with significant changes expected in July that could affect your finances. Energy bills are on the rise starting today, alongside updates to the Motability scheme and improved protections for Buy Now, Pay Later customers later this month. Additionally, the usual updates regarding inflation and interest rates are anticipated.
On July 1, the Ofgem price cap will increase by approximately 13%, leading to a rise in the average gas and electricity bill from £1,641 to £1,862 annually. While the price cap doesn’t set a limit on overall energy costs, it does regulate unit rates and standing charges, with actual bills dependent on individual energy consumption.
Changes to the Motability scheme starting July 1 include a reduction in the annual mileage allowance from 20,000 to 10,000 miles, with a higher charge of 25p per additional mile driven. Moreover, the permissible number of tyre replacements has been lowered, and new administrative requirements have been introduced for EU travel notification.
A public consultation by the Bank of England on the redesign of banknotes featuring UK wildlife themes will close on July 3, allowing for public input on the representation of home nations’ animals on future currency.
Starting July 15, Buy Now, Pay Later services will fall under Financial Conduct Authority regulation, ensuring customers receive enhanced protections. Affordability checks will be mandatory, and clear agreement details will be provided to users, including payment schedules and consequences of missed payments. Customers will also have recourse to the Financial Ombudsman Service in case of disputes.
Inflation data from the Office for National Statistics is set to be released on July 22, with the most recent figures indicating a stable rate of 2.8%. The Bank of England will announce its next interest rates decision on July 30, with the current base rate standing at 3.75%.
Self-assessment taxpayers must make a “payment on account” by July 31, which serves as an advance payment toward their tax bills. Failure to meet this deadline may result in penalties and accrued interest on unpaid taxes.