July will be a month of major changes in your pocket, with Ofgem lowering its price cap as well as new rules by some of the biggest high street banks.
Also, more claimants will have access to UC instead of the old benefits; note the dates for PIP consultations, self-assessment and tax credit renewals.
July’s Key Financial Changes
Below are more details on these changes and how they may affect you and your portfolio.
Universal Credit Transition
Through the so-called managed migration, a number of thousands of legacy benefit claimants will start to receive Universal Credit. According to the GOV.UK, those entitled to Income related Employment Support Allowance and Child Tax Credits, migration notice will be given by Jun ’24.
This informs people that they have three months to transfer from this benefit to the new one known as Universal Credit. The Department for Work and Pensions (DWP) finally wants to point out that 55 percent of the population will be benefited by such a change and, 900000 population may have to suffer.
The majority of these transitions will end by March 2025; however, some specific claimants may have their transitions to the new portal complete by as late as 2028.
Universal Credit will replace the following six benefits:Universal Credit will replace the following six benefits:
- Working Tax Credit
- Child Tax Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
- Employment and support Allowance-Income related
- Housing Benefit
Ofgem Energy Price Cap: 1st July
From July 1, the Ofgem price cap which was £1,690 will reduce to £1,568 per annum for an average use dual fuel household consuming through direct debit.
This cap impacts about 28 million people of England, Scotland, and Wales. The price cap restricts the unit price of gas and electricity and the highest extent of the daily standing charge; however, this will not control the amount you are charged based on your usage of energy.
Lloyds Bank Account Fees: July 1
Lloyds Bank currently charges some of their packaged accounts £6 a month, this figure will be raised by the bank to £12.
This fee increase applies to the Club Lloyds Silver account where the cost of maintenance stands at £10 will now be £11.50, and they provide services that include; European and UK multi-trip Family Travel Insurance, AA Breakdown Family Cover and mobile phone insurance.
We shall also see the extra £1 to the existing fee at the Club Lloyds Platinum account, making the fee £22. 50 This includes global travel insurance, additional AA Breakdown Cover and many others.
The ticket for the basic Club Lloyds current account is still £3 though can be exonerated if you lodge £2,000 or more every month.
Inflation Data Release: 17 July
The official rate of inflation in the UK will be published by the Office for National Statistics next on July 17. New statistics were seen as evidence of inflation reaching the Bank of England’s 2% in the 12 months to May this year and further peaked at 11.
In October 2022, it was 1%, the next journey of the Monetary Policy Committee of the Bank of England on interest rates, is at 5%. The business segments, particularly those within the 25% range, will be regarded as important.
Barclaycard Minimum Repayments: July 22
Barclaycard is cutting down the minimum payment, thereby possibly lengthening the debt span and raising total interest. Today, the minimum repayment has become the greatest of 3. of the amount of your balance seventy-five percent, 2. This is 5% plus interest or £5 higher than the tenor or term price, depending on which is higher.
Since July 22, they will decrease to the max of 1 percent of the balance, 1 percent plus interest, or 5 pounds. For a balance of £1,000, this alteration could bring out the repayment period from almost ten years to close to nineteen years, at a higher interest rate.
PIP Consultation Deadline: July 23
A consultation on the reforms of the Personal Independence Payments (PIP) will end on the 23rd of July. Ideas made for change incorporated the replacement of the ongoing payments by vouchers or one-off payments, together with the much closer association of PIP assessments to the applicants’ conditions.
Support to those willing to get treatment for any severe or terminal illnesses is supposed to be facilitated and accelerated by the government.
Lloyds Bank Switch Offer: July 30
The best for the market is over, Lloyds Bank £175 switch offer will be over on July 30. The terms set for this newest campaign are pretty simple, a customer transfers at least three direct debits to become a Club Lloyds account holder. Bonus items that are part of Club Lloyds include a Disney+, cinema, magazine, or coffee club membership.
Furthermore, a linked regular saver gives 6. That is 25% for the first £400 that is introduced into the account each month. Also, important to mention the fee of £3, which can be avoided if the account holder deposits £2,000 monthly; for applicants who received switch money from Lloyds since April 2020, it would not be available to them.
Self-Assessment Payment Deadline: 31st July
Self-assessment taxpayers need to also pay a “payment on account” before the 31st of July, and it is a deposit towards their credit. This is usually for cases where one works for him or herself or earns income that he or she has not declared to the authority.
Overdue amounts attract penalties as well as interest rates that are at present holding at 7%. 75%. Another adjustable amount of payment may be required as of the balance payment on January 31, 2025, depending on the taxes paid in amounts exceeding the basic payment obligations.
Tax Credits Renewal Deadline: 31st July
Benefit recipients within the Tax Credits category have to submit a new application before July 31, failure to which their benefits will be stopped. Renewal packs have been sent out; for others, it remains uncertain whether they will be able to subscribe to it.
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