UK households are facing increased expenses this year, with significant changes expected in July that may impact finances. Energy bills are on the rise starting today, alongside updates in the Motability scheme, enhanced protections for buy now, pay later customers, and anticipated inflation and interest rate adjustments.
On July 1, the Ofgem price cap is set to increase by approximately 13%, resulting in a rise from an average annual gas and electricity bill of £1,641 to £1,862. The price cap does not dictate the total energy cost but sets a limit on unit rates and standing charges, with the bill still reflecting actual energy consumption.
Effective July 1, new Motability scheme contracts will reduce the mileage allowance from 20,000 to 10,000 miles annually, with a subsequent charge of 25p per extra mile driven, up from 5p. Additionally, the permitted number of tire replacements has been lowered from eight to six over a three-year lease period. For a five-year WAV lease, up to ten tire replacements are allowed, with a maximum of six for damages, along with new admin fees and travel notifications to the RAC for EU trips.
The deadline for the Bank of England’s public consultation on the redesign of banknotes, featuring UK wildlife and nature themes instead of historical figures, is July 3. Meanwhile, buy now, pay later services will fall under Financial Conduct Authority regulation from July 15, ensuring customers undergo affordability checks and receive transparent agreement details to enhance consumer protections.
The Office for National Statistics will release the latest inflation data on July 22, indicating a stable rate of 2.8% in May. Subsequently, the Bank of England will announce its next interest rates on July 30, currently set at 3.75%, impacting borrowing costs.
Self-assessment taxpayers must make a “payment on account” by July 31, an advance payment towards tax bills, with penalties and interest for late payments. Stay informed on these financial developments to manage your finances effectively.