DWP, HMRC and Bank of England changes due to come into effect in June

A number of changes that will affect your finances are due to come into effect from next month
-Credit: (Image: PA)

A variety of financial changes are due to take place in June which could affect your personal budget. This includes new cost of living payment rates from the Department for Work and Pensions (DWP).

The Bank of England could make a major new announcement affecting the British economy as well as how much you'll pay back on your mortgage when it takes another look at interest rates in June. Universal Credit claimants could also see their payments rise.

There is also a new law for pet owners to be aware of, otherwise you might get caught out and fined. You might start to see banknotes featuring King Charles' image in your cash later this month, reports M.E.N.

Read more: DWP issues warning to Universal Credit and PIP claimants going on holiday in Europe

Below is a full breakdown of all the money changes taking place in June 2024.

Abolishment of Multiple Dwellings Relief tax break - June 1

During the Spring Budget, Chancellor Jeremy Hunt confirmed that the government will scrap multiple dwellings relief for stamp duty land tax.

Those who purchase more than one dwelling in a single transaction - for example, houses and flats purchased together or mixed-use properties such as shops with a flat above, will no longer receive tax relief from June 1, and thus pay more on bigger purchases.

The relief was initially intended to attract investment in the private rental sector, but a HMRC evaluation of the process found it made no significant difference and was instead leading to abuse of the system.

The move has been criticised by private investors who say the change in stamp duty will lead to the value of properties dropping. The chancellor said abolishing Multiple Dwellings Relief will raise around £385 million a year for the Treasury.

£80 payment for some via Households Support Fund - June 3

Vulnerable households could begin receiving benefits from the Household Support Fund after it was extended earlier this year. Councils use this fund to give extra support to those struggling with the cost of living.

Support may come in the form of free school meals vouchers or other vouchers to help pay for essentials such as clothing, rent, and energy bills. Some households could even receive cost of living payments.

Not all households will be eligible for support through the HSF and many councils are providing different forms of help. To find out if you qualify in your area, you should contact your council to see what support they will have available through HSF in June.

New King Charles banknotes enter circulation - June 5

King Charles' face will appear on banknotes for the first time from June 5. The King's portrait will feature on the front of the banknotes as well as in cameo in the see-through security window which is visible on both sides.

Meanwhile, the reverse side images will remain unchanged - with Sir Winston Churchill on the £5, Jane Austen on the £10, JMW Turner on the £20 and Alan Turing on the £50.

Notes already in circulation featuring the late queen will continue to remain as legal tender, with both versions co-circulating.

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

A new law is coming into force that pet owners need to know about. All cat owners must microchip their cat before June 10 this year or they risk facing a fine of up to £500.

According to the charity Cats Matter, roughly 25 per cent of cats may not be microchipped in the UK. A spokesperson said: "Once the new law comes into force, owners found without their cat microchipped will have just 21 days to have one implanted. After the 21 days, owners may then face a fine of up to £500.

"We have done the hard part by getting the law changed. Now it is down to cat owners to make sure this is the success we know it can and will be."

Bank of England interest rate announcement - June 20

Members of the Monetary Policy Committee (MPC) will review the national interest rate on June 20. The bank previously voted in favour of halting interest rates at 5.25 per cent - a 16-year high.

The bank has consistently said it wants to drive down inflation to two per cent and is likely one of the key factors being examined before members vote on the new interest rate. Inflation reached 2.1 per cent in April, which is down from 3.2 per cent in March and the lowest level since July 2021.

Interest rates are used to help determine the amount paid back on loans such as mortgages. If interest rates are lower, it means mortgage payments will also be lower.

Although mortgage rates have come down slightly since December, around 45 per cent of fixed-rate mortgage holders are facing higher monthly repayments when they reprice their mortgage by the end of 2026.

Changes to Debt Relief Orders - June 28

Debt Relief Orders (DRO) will undergo significant reform on June 28. The removal of £90 fees were already implemented in April of this year, with a rise in the debt threshold and value of a vehicle coming into force next month.

The total amount of debt covered by a DRO will increase from £30,000 to £50,000 while the value of a vehicle a person can own when they enter a DRO will go up from £2,000 to £4,000.

Take a meter reading before new price cap - June 30

Households are being urged to take a fresh meter reading before the new energy price cap comes into force on July 1. By taking a meter reading the day before the cap comes in, billpayers could avoid being overcharged on their electricity due to the way firms estimate how much you pay on your usage.

HMRC letter for families receiving Child Benefit

Throughout June, families will be receiving letters which they must respond to or risk losing over £1,300. HMRC will be sending letters out between May 24 and July 17, asking for additional information.

Andy Wood from Crypto Tax Degens highlighted the urgency, stating: "Parents will soon receive a letter from HMRC, asking them to confirm whether their child remains enrolled in full-time education or training. Remaining eligible for child benefits depends on whether you have a child under 16 (or 20 if the child is in education or training)."

New full benefit rate for some claimants

Some benefit claimants are yet to receive the new full rate following its introduction last month from the DWP. This is due to the fact that the new rate is not paid until the first assessment period either on or after April 8.

Because benefit payments are issued after the first assessment period closes, some people may have received the old rate this month as the assessment period started prior to April 8. Therefore, the new full rate should be paid from June 1 if it hasn't been received already.