The Mirror rounds up all the personal finance updates you need to know for July, from energy bills going up, to new rules for buy now, pay later customers
UK households have been clobbered with higher costs this year – and July is set to bring its own big changes that could impact your wallet.
Energy bills are rising from today, while there are also big changes that have come into force for the Motability scheme. Buy now, pay later customers are set to get better protections later this month and we’re also expecting the usual inflation and interest rates updates.
Plus, there is an upcoming self-assessment deadline that affects anyone who works for themselves. Here is what you need to know.
Ofgem price cap rises – July 1
The Ofgem price cap is rising by around 13% on July 1. Based on the new rates, the average gas and electricity bill will increase from £1,641 to £1,862 a year. The price cap does not actually limit how much you pay for energy. It sets a cap on what you can be charged for unit rates and standing charges – so your energy bill is still very much based on how much gas and electricity you are using.
Motability changes – July 1
New contracts through the Motability scheme will include a mileage allowance of 10,000 miles a year, down from 20,000 miles, starting from July 1. After this, they will incur a 25p charge on every additional mile driven, up from 5p a mile. The number of tyre replacements you are allowed has also been reduced from eight to six, over a three-year lease. For a five-year WAV lease you can replace up to ten tyres, with up to six for damage. You must also now pay an admin fee and let the RAC know when you are travelling to the EU.
Last chance to vote on new UK banknotes – July 3
The Bank of England’s official public consultation on the redesign of the £5, £10, £20, and £50 notes closes at 11:59pm on July 3. This is if you want to have your say in which animals represent the home nations on future banknotes. The Bank has confirmed it is replacing historical figures with UK wildlife and nature themes.
Buy now, pay later rule change – July 15
Buy now, pay later will come under Financial Conduct Authority (FCA) regulation from July 15, giving customers stronger protections. From this date, buy now, pay later users will have to undergo affordability checks to ensure they can afford to repay what they borrow. They must also be given clear, upfront details about their agreement, such as when payments will be due, how much will be due, and what happens if they miss a payment. If things go wrong, customers will also be able to complain to the Financial Ombudsman Service (FOS).
Inflation update – July 22
The latest inflation data from the Office for National Statistics (ONS) will be released on July 22. Inflation is a measure of how prices have changed over time. In the latest update from the ONS, inflation remained unchanged at 2.8% in May despite expectations that it was set to rise. At its highest point, inflation reached 11.1% in October 2022.
Interest rates decision – July 30
The Bank of England will make its next interest rates announcement on July 30. The base rate is currently at 3.75% after the Bank of England announced it was holding it at this level for the fourth time in a row at its last meeting in June. The base rate is what the Bank of England charges other banks and lenders – this then affects how much it costs you to borrow money.
Self-assessment deadline – July 31
Millions of self-assessment taxpayers will need to make a “payment on account” by July 31. This is a type of advance payment towards your tax bill, normally made by self-employed workers or those with untaxed income. You make two of these payments each year – the first one is due by midnight on January 31 and the second by midnight on July 31. If you don’t pay on time you could incur penalties and will have to pay interest on the outstanding tax.
