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, along with adjustments to the Motability scheme. Customers using buy now, pay later services can anticipate enhanced protections later in the month, in addition to updates on inflation and interest rates.
The Ofgem price cap is scheduled to increase by approximately 13% on July 1, leading to a rise in the average annual gas and electricity bill from £1,641 to £1,862. While the price cap doesn’t dictate the total energy bill, it does set limits on unit rates and standing charges, with the final bill dependent on actual energy consumption.
Changes to Motability scheme contracts will include a reduced mileage allowance of 10,000 miles annually from July 1, down from the previous 20,000 miles. Additional miles beyond the allowance will now incur a charge of 25p per mile, up from 5p. Moreover, the permitted number of tyre replacements has been decreased, with new administrative requirements for EU travel.
The Bank of England is seeking public input on redesigning banknotes, with a consultation closing on July 3. The new notes will feature UK wildlife themes instead of historical figures, reflecting a shift in design approach.
Buy now, pay later services will fall under Financial Conduct Authority regulation starting July 15, ensuring customers receive better safeguards. Affordability checks will be mandatory, with transparent agreement details provided upfront, including payment schedules and consequences of missed payments. Customers will also have recourse to the Financial Ombudsman Service in case of disputes.
The Office for National Statistics is set to release the latest inflation data on July 22, indicating any price adjustments. Meanwhile, the Bank of England will announce its next interest rates decision on July 30, following the maintenance of the base rate at 3.75% in the previous meeting.
Self-assessment taxpayers must make a “payment on account” by July 31 to prepay taxes, especially relevant for the self-employed or those with untaxed income. Failure to meet the deadline may result in penalties and interest charges on outstanding tax amounts.