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, and adjustments have been implemented for the Motability scheme. Moreover, buy now, pay later customers will receive enhanced protections later this month, alongside anticipated updates on inflation and interest rates.
The Ofgem price cap is set to increase by approximately 13% on July 1. This adjustment will result in the average annual gas and electricity bill rising from £1,641 to £1,862. It is important to note that the price cap does not determine the total energy bill but rather sets limits on unit rates and standing charges, meaning your energy costs are still primarily based on actual usage.
Changes to new contracts under the Motability scheme include a reduction in the mileage allowance from 20,000 to 10,000 miles per year, effective July 1. Additional miles beyond this limit will incur a charge of 25p per mile, up from the previous 5p per mile. The allowance for tire replacements has also been decreased from eight to six over a three-year lease period.
The Bank of England has initiated a public consultation for the redesign of various banknotes, including the £5, £10, £20, and £50 notes, which closes on July 3. The redesign aims to replace historical figures with representations of UK wildlife and nature themes.
Starting from July 15, buy now, pay later services will fall under the regulation of the Financial Conduct Authority (FCA), providing customers with stronger consumer protections. Affordability checks will be mandatory for users to ensure repayment feasibility, and clear details about payment terms will be provided upfront. Customers will also have access to the Financial Ombudsman Service (FOS) in case of disputes.
The Office for National Statistics (ONS) will release the latest inflation data on July 22, with the May figure remaining stable at 2.8%. The Bank of England is scheduled to 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 towards their tax bill, primarily applicable to self-employed individuals or those with untaxed income. Failure to meet the deadline may result in penalties and accrued interest on outstanding tax amounts.