UK households are facing increased expenses this year, with significant changes expected in July that could impact finances. Energy bills have gone up recently, and adjustments to the Motability scheme have been implemented. Customers of buy now, pay later services will receive enhanced protections starting later this month, in addition to the usual updates on inflation and interest rates.
The Ofgem price cap will rise by approximately 13% on July 1, leading to an average annual increase in gas and electricity bills from £1,641 to £1,862. This price cap sets limits on unit rates and standing charges but does not determine the total energy cost, which still depends on individual consumption.
Effective July 1, new Motability scheme contracts will have a reduced mileage allowance of 10,000 miles per year, down from 20,000 miles, with an increased charge of 25p per additional mile driven. The maximum number of allowable tyre replacements has also been lowered. Furthermore, individuals on a five-year WAV lease can replace up to ten tires, with a limit of six for damage, and must pay an administrative fee and inform the RAC when traveling to the EU.
The Bank of England is seeking public input on the redesign of banknotes, aiming to replace historical figures with UK wildlife themes. The consultation closes on July 3, giving people a chance to influence the choice of animals representing the home nations.
From July 15, buy now, pay later services will fall under Financial Conduct Authority regulation, ensuring customers receive better protections. Affordability checks will be mandatory, and clear agreement details must be provided upfront, including payment schedules and consequences of missed payments. Customers will have recourse to the Financial Ombudsman Service in case of disputes.
The Office for National Statistics will release the latest inflation data on July 22, with the previous rate remaining at 2.8% in May. The Bank of England will announce its next interest rate decision on July 30, keeping the base rate at 3.75%, affecting borrowing costs.
Self-assessment taxpayers are reminded to make a “payment on account” by July 31, to avoid penalties and interest on outstanding tax. This advance payment is typically made by self-employed individuals or those with untaxed income, with two payments due annually on January 31 and July 31.
