UK households are facing increased expenses this year, with significant changes expected in July that could impact finances. Energy bills are on the rise starting today, alongside alterations to the Motability scheme and improved protections for buy now, pay later consumers. Additionally, updates on inflation and interest rates are anticipated.
The Ofgem price cap is set to increase by approximately 13% on July 1, leading to a rise in the average gas and electricity bill from £1,641 to £1,862 per year. While the price cap doesn’t limit the total energy cost, it imposes a cap on unit rates and standing charges, making bills dependent on actual energy consumption.
Modifications to the Motability scheme effective from July 1 include a reduction in the annual mileage allowance from 20,000 to 10,000 miles, with an increased charge of 25p for each additional mile driven. Moreover, the permitted number of tire replacements has been decreased, with additional administrative requirements for EU travel.
The Bank of England is seeking public feedback on the redesign of banknotes, replacing historical figures with UK wildlife themes. The consultation deadline is July 3, allowing individuals to contribute their opinions on the new note designs.
From July 15, buy now, pay later services will fall under Financial Conduct Authority regulation, ensuring consumers receive enhanced protections. Users will undergo affordability checks, receive transparent agreement details, and have access to the Financial Ombudsman Service for complaints.
The Office for National Statistics will release the latest inflation data on July 22, with May’s inflation rate remaining steady at 2.8%. The Bank of England is scheduled to announce its next interest rates decision on July 30, with the current base rate at 3.75%.
Self-assessment taxpayers must make a “payment on account” by July 31, serving as an advance tax payment for self-employed individuals or those with untaxed income. Failure to pay on time may result in penalties and accrued interest on outstanding taxes.
