Four major money changes coming in June - from new bank notes to DWP housing benefits

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

This month, significant changes are coming to the financial landscape. From shifts in benefits and potential adjustments in interest rates, there are a few key things to be aware of.

As The Mirror reports, benefits claimants, pet owners, and those looking to buy a home might find themselves affected by the looming altercations. A major revolution will also be witnessed with the introduction of King Charles III bank notes replacing the late Queen Elizabeth II.

Here's everything you need to know about the upcoming financial modifications set for June.

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June 1 - Multiple Dwellings Relief (MDR) tax break ends.

The Multiple Dwellings Relief (MDR) is a tax reduction applied upon the purchase of properties in England and Northern Ireland, otherwise known as Stamp Duty Land Tax (SDLT). This relief has been operational since 2011 and aims at helping reduce stamp duty when more than one "dwelling" is purchased in one go.

Nevertheless, Chancellor Jeremy Hunt terminated this tax relief during the Spring Budget. His argument was that despite costing the Treasury around £700 million annually, it no longer serves its initial purpose of boosting investment in private rented sectors.

Moreover, it was argued that the Multiple Dwelling Relief often complicates Stamp Duty transactions, leading to many cases being brought before the tax tribunal in recent years.

June 5 - The arrival of new King Charles banknotes.

From June 5, banknotes featuring King Charles III will be introduced into circulation. The overall design of the notes will remain unchanged, but they will now showcase a portrait of the King instead of the late Queen Elizabeth II.

All four denominations - £5, £10, £20 and £50 - will incorporate the new design. Banknotes bearing the image of the late Queen will continue to be legal tender and will circulate alongside King Charles III's notes.

The fresh banknotes are being printed solely to replace those that are worn out and to cater to any overall surge in demand for banknotes.

June 10 - fines for cat owners

By June 10, all pet cats in England must be microchipped. The new regulations stipulate that cats must be microchipped before they reach 20 weeks of age, including those kept exclusively indoors.

Under the new rules, owners are required to keep their contact details updated on a Defra-approved microchipping database. If you fail to meet the June deadline, the law provides a 21-day grace period to have your cat microchipped, failing which you may be slapped with a fine of up to £500.

June 20 - review of base interest rate

On June 20, the Bank of England's Monetary Policy Committee (MPC) will convene to review its base interest rate. At present, the rate stands at 5.25% and has been maintained at this level since August of the previous year.

During its last meeting on May 8, the MPC voted 72 to keep the rate steady. Two members voted in favour of reducing the Bank Rate by 0.25 percentage points, to 5%.

The Bank of England's decision is based on the UK's inflation level, which was revealed earlier this month to have dropped to 2.3% in the year leading up to April. This figure is not far from the Bank's target of 2%.

Many are of the opinion that this should prompt the Bank of England to reduce interest rates. However, the drop was not as significant as expected, suggesting that the Bank may delay rate cuts until inflation decreases further.

If a cut does occur, the 643,000 individuals with tracker mortgages will experience an immediate reduction in their monthly payments.

June 28 - Changes to debt relief orders

Changes to Debt Relief Orders (DROs) will take effect from June 28. The total amount of debt that a DRO can cover will increase, with the maximum value threshold rising from £30,000 to £50,000.

In addition, the maximum value of a vehicle that an individual can keep under a DRO will also increase from £2,000 to £4,000.

Universal Credit changes

Benefit payments increased by 6.7% from April 8, 2024, for many claimants. However, for some Universal Credit recipients, the increased benefit rates will only come into effect around June due to the Universal Credit assessment period.

Universal Credit is determined each month based on what's known as your "assessment periods" - any changes in your circumstances within these periods could result in alterations to the amount of Universal Credit you receive that month. Therefore, if your assessment period began prior to the rise on April 8, you would have seen a benefits increase in May.

However, individuals whose assessment period started after this date won't notice it until June. Charity Turn2us provides an example: suppose your assessment period commences on March 26. It runs for the full calendar month up to April 25, with the next assessment period kicking off on April 26.

Universal Credit payments are made a week following the final date of each assessment period, meaning you will receive your payment on May 2. However, since this assessment period initiated before April 8, new rates haven't taken effect, so you'll be waiting until your subsequent assessment period (April 26 to May 25) to acquire the new rate on June 1.

For those whose assessment period started after April 8, say April 12, it ran for the whole calendar month up to May 11, with a fresh assessment period starting on May 12. Because Universal Credit payments are distributed a week after each assessment period ends, you received your payment on May 18.

Given your assessment period began post-April 8, the new rate was in effect and you received the enhanced Universal Credit payment.

Changes to housing benefits

The Department for Work and Pensions (DWP) is presently transitioning everyone claiming older legacy benefits onto Universal Credit. This process has been carried out in stages, with the DWP contacting individuals who claim certain types of benefits.

Starting from June 1, all those claiming Housing Benefit only will begin to receive letters instructing them to claim Universal Credit instead.

Upon receipt of this letter, claimants will have a three-month window to submit a claim for Universal Credit. Failure to act before this deadline could result in the loss of their current benefit entitlement.