This June is set to bring an avalanche of financial updates that could affect your personal finances. From new cost of living payments to Universal Credit updates, here's a look at what you can expect and how it might affect you.
Cost of Living Support Payment and Universal Credit Update
A series of financial adjustments are scheduled for June, which could alter your budget plans. Against the backdrop of the recently announced general election, these changes include new living allowances for residents in certain areas.
Furthermore, some Universal Credit recipients could see their benefits increase, based on their last assessment period. Also, the impending Bank of England interest rate announcement in June could influence the UK economy as a whole and affect your mortgage payments.
Owners of domestic pets should be aware of a new law allowing them to avoid fines, and banknotes bearing the likeness of King Charles are due to start appearing in circulation.
Here's a detailed look at the major currency changes that will take place in June 2024, as reported by the Manchester Evening News.
June 1st: Suppression of Tax Relief for Multiple Dwellings
Chancellor Jeremy Hunt's Spring Budget confirmed the removal of stamp duty relief for multiple dwellings.
The change, which comes into effect on June 1, affects buyers of multiple properties in the same transaction, including mixed-use properties and houses with annexes, which will result in higher costs for these transactions.
Originally intended to stimulate investment in the private rented sector, an HMRC assessment found that the relief was largely ineffective and open to abuse.
The measure has been criticised by private investors as potentially devaluing property. Nevertheless, the Chancellor expects the measure to generate around £385 million a year for the Exchequer.
June 3: £80 Payment via Household Support Fund
From 3 June, vulnerable households could start receiving help from the Household Support Fund (HSF). Local councils use the fund to help people facing rising living costs through measures such as vouchers for free school meals or other essential vouchers for clothing, rent and energy bills.
Cornwall Council, for example, has confirmed that it will be issuing £80 payments from this date. Eligibility requirements vary, so residents should contact their local council to check what help is available under the HSF.
10 June: Cat Owners Risk £500 Penalty
According to a new government law, all cats must be microchipped by 10 June or face a £500 fine. The charity Cats Matter estimates that around 25% of British cats are not microchipped.
A spokesperson for the charity insisted: "After implementation, owners of unchipped cats have 21 days to comply or face a fine. We've secured the legislative change, and now it's up to cat owners to make it work".
20 June: Bank of England Interest Rate Ruling
On 20 June, the Bank of England's Monetary Policy Committee (MPC) will review the national interest rate, which currently stands at 5.25%, its highest level for 16 years. The Bank's objective is to bring inflation down to 2%, a factor likely to influence its decision.
Encouragingly, inflation fell to 2.1% in April from 3.2% in March, the lowest rate since July 2021. Interest rates have a significant impact on mortgage repayments, with lower rates leading to lower payments.
Even with mortgage rates falling slightly since December, almost 45% of fixed rate mortgage holders could face higher repayments when their mortgage is revalued by the end of 2026.
June 28: Changes to Debt Relief Orders (DROs)
The changes to Debt Relief Orders (DROs) began in April, with further increases planned for June. A DRO's debt threshold will rise from £30,000 to £50,000, and the permitted vehicle value will increase from £2,000 to £4,000.
Deputy Director of Policy at the Insolvency Service, Andrew Shore, commented, "The increase in vehicle value allows more people to access DROs.
Those who have debts of up to £50,000 but are unable to repay them may find relief, reflecting the current economic challenges."
30 June: Meter Reading Before the New Price Cap
Households are expected to take a meter reading before 1 July, when the new energy price cap comes into force. This measure will prevent overcharging based on estimated consumption and ensure that bills are accurate in the event of a dispute.
HMRC Letter to Child Benefit Claimants
In June, families in receipt of child benefit should expect to receive a letter from HMRC inviting them to respond. Failure to respond could result in the loss of over £1,300 in benefits.
The letters, sent between 24 May and 17 July, ask for confirmation that the child is still in full-time education or training.
Child benefit is substantial and can be as much as £1,331 a year for the first child and £881 for each additional child. High earners must also take into account the child benefit tax for high earners.
New Full Benefit Rate for Some Claimants
Some benefit claimants are waiting for the new full rate introduced by the Department for Work and Pensions (DWP) last month.
Payments are calculated on the basis of the assessment period, so those whose period began before 8 April may not yet have received the new rate, but should expect to receive it from 1 June.