Big money changes in June from new bank notes to benefits rise for some

A £10 bank note bearing a portrait of King Charles III, which will enter circulation on June 5
-Credit: (Image: Getty Images)

There are a host of money changes set to come into effect this month, encompassing alterations to benefits, potential movement in interest rates, and more.

Pet owners, benefit claimants, and prospective homebuyers are among those who could feel the impact of the upcoming changes, as reported by The Mirror. Additionally, there's a significant change in banking notes on the horizon that will see King Charles III replace his late mother Queen Elizabeth II.

Here's a rundown of all the financial adjustments scheduled for June that you should keep an eye on.

June 1 - Multiple Dwellings Relief (MDR) tax break scrapped

Multiple dwellings relief (MDR) is a reduction on the tax that must be paid on the purchase of a property in England and Northern Ireland, known as Stamp Duty Land Tax (SDLT). The relief is designed to reduce stamp duty when more than one “dwelling” forms part of a single purchase and has been around since 2011.

However, the tax relief was abolished by Chancellor Jeremy Hunt in the Spring Budget. The reason for the move was that the relief costs the Treasury around £700 million a year but no longer fulfils its original objective of supporting investment in the private rented sector.

It was also noted that Multiple Dwelling Relief can overcomplicate Stamp Duty with many cases going to the tax tribunal over the past few years.

June 5 - New King Charles banknotes

From June 5, bank notes featuring King Charles III will enter circulation. Overall the design of the notes will remain the same but they will now feature a portrait of the King in place of the portrait of the late Queen Elizabeth II.

All four bank notes - £5, £10, £20 and £50 - will feature the new design. Banknotes that feature the late Queen will remain legal tender and will co-circulate alongside King Charles III's notes. The new banknotes are only being printed to replace those that are worn and to meet any overall increase in demand for banknotes.

June 10 - Cat owners could be fined up to £500

All pet cats in England must be microchipped by June 10, 2024. The new rules mean that cats must be microchipped before they reach the age of 20 weeks. This also includes indoor-only cats.

As part of the new rules, you must keep your contact details up to date on a Defra-approved microchipping database. If you miss the June deadline, the new law states you'll have 21 days to have your cat microchipped, or you may face a fine of up to £500.

June 20 - Bank of England base interest rate decision

The Bank of England's Monetary Policy Committee (MPC) will meet to review its base interest rate. Currently, the rate sits at 5.25% and has been at this level since August last year. At its last meeting on May 8, the MPC voted by a majority of 7–2 to maintain the rate at the same level. Two members voted to reduce Bank Rate by 0.25 percentage points, to 5%.

The Bank bases its decision on the level of inflation in the UK and earlier this month it was revealed that this had dropped to 2.3% in the year to April. This is not far off the Bank's target of 2%. Many believe this should encourage the Bank of England to cut interest rates, however, this drop was not as far as was anticipated. This means the Bank may hold off from cutting rates until inflation drops further. However if it does, the 643,000 people on tracker mortgages will see an immediate cut to their monthly payments.

June 28 - Changes to Debt Relief Orders

From the end of June, the rules for getting a Debt Relief Order (DRO) will change. From June 28, The total amount of debt a DRO can cover is also changing, with the maximum value threshold rising from £30,000 to £50,000. Alongside this, the maximum value of a vehicle that a person can retain with a DRO is also rising from £2,000 to £4,000.

Universal Credit payment rises

Benefits payments increased by 6.7% from April 8, 2024, for many claimants. But for some Universal Credit claimants, the increased benefit rates will only take effect around June. This is due to the Universal Credit assessment period.

Universal Credit is calculated based on your circumstances each month and these are called your "assessment periods" - if your circumstances change within the assessment period then the amount of Universal Credit you get that month could also change. So if your assessment period started before the April 8 rise, you will have seen the benefits rise in May. However, those whose assessment period started after won't see it until June.

Charity Turn2us sets out an example: If your assessment period started on March 26. It runs for a complete calendar month to 25 April, with a new assessment period beginning on 26 April. Universal Credit payments are paid a week after the last date of each assessment period, so you will receive your payment on 2 May.

But as this assessment period started before April 8, the new rates will not take effect and you will have to wait until your next assessment period (April 26 to May 25) to get the new rate on June 1.

If your assessment period started after April 8, for example on April 12., it ran for a complete calendar month to May 11, with a new assessment period beginning on May 12. As Universal Credit payments are paid a week after the last date of each assessment period, you received your payment on May 18. As your assessment period started after April 8, the new rate was in effect and you received the increased Universal Credit payment.

Housing benefit claimants to receive DWP letter

The Department for Work and Pensions (DWP) are currently working to move everyone claiming older legacy benefits onto Universal Credit. The DWP has been doing this in stages and has been contracting people who claim certain types of benefits. From June 1, all people claiming Housing Benefit only will start to receive letters asking them to claim Universal Credit instead.

Once you get one, you will only have three months to put a claim in for Universal Credit. If you do not take action before this deadline then you risk losing your current benefit entitlement.