DWP and financial changes coming in July that could affect you

A raft of changes impacting the cost of living and personal finances are set to kick in from July, affecting millions across the UK. The Department for Work and Pensions (DWP) and HMRC have several alterations lined up for the upcoming month.

These encompass a new energy price cap that will impact millions of households, along with tax deadlines and updates for those claiming state benefits. With numerous dates to keep track of, it can be tough to stay abreast of everything, so we've put together a list of the crucial changes you need to know about.

Here's a summary of all the financial shifts due to take place in July.

Energy bills set to drop for millions - July 1

From July 1, a new energy price cap will come into effect, leading to reduced gas and electricity costs for millions. The price cap, set by regulators Ofgem, will fall to £1,568 per year from this date and will stay in place for three months until the end of September, reports Wales Online.

This equates to a decrease of around £122 per year from the current cap of £1,690. The energy price cap applies to you if you pay for your electricity and gas by either:

• standard credit (payment made when you get your electricity and gas bill)

• direct debit

• prepayment meter

• economy 7 (E7) meter

However, the actual amount you'll pay will hinge on your household's energy usage, your location, and the type of meter you have. It's a limit on how much you can be charged per unit of energy you use, not a cap on your total bill.

General election - July 4

The UK general election is scheduled for July 4, and the outcome could have a significant impact on your personal finances, depending on which party takes power.

Labour's manifesto includes a commitment to review universal credit and put an end to "end mass dependence on emergency food parcels", although it's not yet clear whether this will involve increasing or decreasing access to the benefit or what other changes might be considered. The party also promises to tackle the backlog of access to work claims and revise the work capability assessment for disabled claimants.

Meanwhile, the Conservatives have made several pledges related to welfare, including potential modifications to Personal Independence Payment (PIP) for disabled claimants and alterations to the work capability assessments. Their goal is to offer tailored support to those with moderate mental health issues or mobility problems who could potentially engage with work, rather than being written off on benefits.

Payment on account deadline - July 31

For self-employed individuals, it's important to note that the deadline for advance payments towards their tax bill is July 31.

Benefits going out as normal - July

In terms of state benefits, these will be paid out as normal in July, as there are no bank holidays. The next changes to payment dates will happen in August due to a bank holiday, which means millions of claimants will receive their benefits earlier as offices and helplines will be closed.

Bank holiday changes typically affect the following benefits:

• Attendance allowance

• Carer's allowance

• Child benefit

• Disability living allowance

• Employment and support allowance

• Income support

• Jobseeker's allowance

• Pension credit

• Personal independence payment

• State pension

• Tax credits (such as working tax credit)