DWP Universal Credit, PIP and Lloyds Bank - 9 money changes coming in July

July is set to be a big month for changes to your money - with the Ofgem price cap set to fall and major high street banks introducing new rules. More people will also be moved to Universal Credit, and there are deadlines for the ongoing Personal Independence Payment (PIP) consultation, as well a key self-assessment date and Tax Credits reminder.

We'll also have the monthly inflation release, after the Consumer Price Index (CPI) finally fell to the Bank of England two per cent target last month.

Here is everything you need to know about how these changes affect you and your wallet:

More people being moved over to Universal Credit

Thousands of people claiming legacy benefits are being moved over to Universal Credit as part of the so-called "managed migration" process. According to GOV.UK, those who currently claim Income-related Employment Support Allowance with Child Tax credits should receive their "migration notice" letter in the post from June 2024.

This letter will give you three months to move over to Universal Credit. The Department for Work and Pensions (DWP) claims 55% of people will be better off on Universal Credit, and 900,000 will be worse off. The rest will see no change. We've explained how to check if you'll be better off.

The majority of people will be moved across to Universal Credit by the end of March 2025, apart from those who claim income-related ESA and do not get Tax Credits, who will be transferred across by 2028. Universal Credit is replacing the following six benefits: Working Tax Credit, Child Tax Credit, Income-based Jobseeker's Allowance (JSA), Income Support Income-related Employment and Support Allowance (ESA) and Housing Benefit.

July 1 - Ofgem energy price cap

The Ofgem price cap is set to fall from £1,690 a year to £1,568 this coming Monday, July 1. This is for a dual fuel household with average energy use, who pays by direct debit. The price cap covers around 28 million people in England, Scotland and Wales. However, despite what its name suggests, there is not actually a total cap on what you can pay for energy.

The price cap sets a limit on the unit price of gas and electricity, as well as the maximum daily standing charge. This means your bill is still based on how much energy you actually use, so it can be more or less than the Ofgem price cap headline figure.

July 1 - Lloyds Bank upping bank account fees

Lloyds is upping the monthly fees on some of its packaged bank accounts. The Club Lloyds Silver account will rise from £10 a month to £11.50. With this account, you get European and UK multi-trip family travel insurance up to age 65, AA Breakdown Family Cover with Roadside Assistance and mobile phone insurance.

The Club Lloyds Platinum account monthly fee is rising from £21 to £22.50 a month. This gives you worldwide multi-trip family travel insurance up to age 80 and AA Breakdown Family Cover with Roadside Assistance, National Recovery and At Home. Club Lloyds still has a monthly fee of £3, which is waived if you pay in £2,000 or more a month.

July 17 - Inflation

The latest inflation data from the Office for National Statistics will be released on July 17. Inflation is a measure of how prices have changed over time. In the latest update from the ONS, inflation was revealed to have finally hit the Bank of England target of 2% in the 12 months to May.

At its highest point, inflation reached 11.1% in October 2022. All eyes will now be on the Bank of England to see if it finally decides to cut interest rates on August 1, having kept its base rate held at 5.25% for the seventh time in a row as its latest meeting on June 20.

July 22 - Barclaycard slashes minimum repayments

Barclaycard is cutting minimum repayments - but it could mean you end up being in debt for years longer and pay more overall in interest. At the moment, you pay the highest of 3.75% of your balance, 2.5% of your balance plus interest, or £5.

This applies to most Barclaycards including Avios, Platinum and Rewards. But from July 22, this will drop to the highest of 1% of your balance, 1% of your balance plus interest, or £5. If you only make minimum repayments every month, MSE calculates that it would currently take nine years and eight months to clear a £1,000 balance and the total interest would be £699. But under the smaller repayments, this rises to 19 years and three months, with the interest spiralling to £1,655.

July 23 - PIP consultation closes

A new consultation has been launched about potentially reforming the disability benefit Personal Independence Payments (PIP) which is claimed by around three million people in the UK. One of the major changes being proposed in the "Modernising Support Green Paper" is to make it so people get vouchers or one-off grants, instead of regular payments.

The DWP has proposed to look at making PIP assessments more closely linked to someone's condition. For some, the PIP assessment could be reformed and removed entirely if they are severely ill. The Government claims will make it "easier and quicker for people with severe or terminal conditions to get the vital support they need". The consultation on the changes will close on July 23.

July 30 - Lloyds £175 switch offer ends

Lloyds Bank will pull its £175 switch offer on July 30. The money is being paid to customers who switch to a Club Lloyds account between May 18 and July 30. As well as opening the new bank account, you need to transfer across three direct debits. On top of the switch cash, Club Lloyds customers can also choose from a range of other perks, including a Disney+ subscription, Vue or Odeon cinema tickets, a magazine subscription, or a Coffee Club and Gourmet Society membership.

You also get access to a linked regular saver which pays 6.25% fixed interest on up to £400 a month. But keep in mind the Club Lloyds account comes with a £3 fee, unless you pay in at least £2,000 a month. You won't be eligible for the £175 switch money if you've had switch cash from Lloyds, Bank of Scotland or Halifax since April 2020.

July 31 - Payment on account deadline

Millions of self-assessment taxpayers will need to make a "payment on account" by July 31. This is a type of advance payment towards your tax bill, normally made by self-employed workers or those with untaxed income. You make two of these payments each year - the first one is due by midnight on January 31 and the second by midnight on July 31.

If you don't pay on time you could incur penalties and will have to pay interest on the outstanding tax. This currently stands at 7.75% because it is set at 2.5 percentage points above the Bank of England base rate. If you still owe tax after this has been paid, a further "balancing payment" may be due on January 31, 2025.

July 31 - Tax Credits renewal deadline

If you are in receipt of Tax Credits, you have until July 31 to renew your claim. HMRC has finished sending out Tax Credit renewal packs - but if you haven't received yours in the post, you can still call up and ask for one to be sent. Tax Credit claimants must renew their claim every year - or risk their benefit being stopped.

You can do it online through your GOV.UK account or you can use the HMRC app. You can also call the HMRC Tax Credit helpline on 0345 300 3900 or post back the renewal pack you are sent by HMRC.

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