Nine money changes in July 2024 including benefits, Ofgem energy price cap and bank fees

July is poised to bring significant changes to your finances, with expectations of a decrease in the Ofgem price cap and new regulations rolling out from major high street banks.

Furthermore, more individuals will transition to Universal Credit, and deadlines will be set for the ongoing Personal Independence Payment (PIP) consultation. Key dates for self-assessment and Tax Credits should also be noted.

We will also observe the monthly inflation rate, following the Consumer Price Index (CPI) finally meeting the Bank of England's 2% target last month. Here is an in-depth look at how these changes could impact you and your pocket, according to the Mirror.

July - More people being moved over to Universal Credit

Thousands of individuals are making the switch from their current legacy benefits to Universal Credit, as part of what is termed the "managed migration" process. According to GOV.UK, those claiming Income-related Employment Support Allowance with Child Tax credits should expect to receive their "migration notice" letters from June 2024.

These letters will offer a three-month window for the transition to Universal Credit. The Department for Work and Pensions (DWP) estimates that 55% of people will financially benefit from Universal Credit, while 900,000 might face financial loss.

The change will be neutral for the remaining individuals. If you're unsure whether you'll benefit, we've got helpful information on checking your potential outcome.

By the end of March 2025, most people will have transitioned to Universal Credit, with the exception of those claiming income-related ESA and not receiving Tax Credits, who will be moved over by 2028. Universal Credit is set to replace six benefits:

• Working Tax Credit

• Child Tax Credit

• Income-based Jobseeker’s Allowance (JSA)

• Income Support

• Income-related Employment and Support Allowance (ESA)

• Housing Benefit

July 1 - Ofgem energy price cap

On July 1, the Ofgem energy price cap is due to drop from £1,690 a year to £1,568. This applies to dual fuel households with average energy use, paying by direct debit.

The price cap affects approximately 28 million individuals in England, Scotland, and Wales. However, contrary to its name, it does not impose an absolute limit on energy costs.

The price cap sets a maximum on the unit price of gas and electricity, as well as the daily standing charge. Therefore, your bill is still dependent on your actual energy consumption, meaning it can be higher or lower than the headline figure set by Ofgem.

July 1 - Lloyds Bank upping bank account fees

From July 1, Lloyds Bank will increase the monthly fees on some of its packaged bank accounts. The Club Lloyds Silver account will rise from £10 a month to £11.50.

This account includes European and UK multi-trip family travel insurance up to age 65, AA Breakdown Family Cover with Roadside Assistance, and mobile phone insurance.

The monthly fee for the Club Lloyds Platinum account is set to increase from £21 to £22.50. This account offers worldwide multi-trip family travel insurance up to age 80 and AA Breakdown Family Cover with Roadside Assistance, National Recovery and At Home. The Club Lloyds account maintains its monthly fee of £3, which can be waived if a minimum of £2,000 is deposited each month.

July 17 - Inflation

On July 17, the latest inflation data will be released by the Office for National Statistics. Inflation measures how prices have changed over time. According to the most recent update from the ONS, inflation has hit the Bank of England's target of 2% in the 12 months leading up to May.

In October 2022, inflation peaked at 11.1%. All eyes are now on the Bank of England to see if it will finally decide to cut interest rates on August 1, after maintaining its base rate at 5.25% for the seventh consecutive time at its last meeting on June 20.

July 22 - Barclaycard slashes minimum repayments

On July 22, Barclaycard will reduce its minimum repayments. However, this could result in customers being in debt for a longer period and paying more in interest overall. Currently, customers pay the highest of 3.75% of their balance, 2.5% of their balance plus interest, or £5.

Most Barclaycards, including Avios, Platinum and Rewards, will see a change from July 22. The highest repayment will drop to either 1% of your balance, 1% of your balance plus interest, or £5.

If you only make minimum repayments every month, MSE estimates that it would currently take nine years and eight months to clear a £1,000 balance with the total interest amounting to £699. However, under the smaller repayments, this increases to 19 years and three months, with the interest skyrocketing to £1,655.

July 23 - PIP consultation closes

July 23 marks the closing date for the PIP consultation. A new consultation has been initiated regarding potential reforms to the disability benefit Personal Independence Payments (PIP), claimed by approximately three million people in the UK.

One of the significant changes proposed in the "Modernising Support Green Paper" is to replace regular payments with vouchers or one-off grants.

The DWP has suggested making PIP assessments more closely linked to an individual's condition. For some, the PIP assessment could be reformed and removed entirely if they are severely ill.

The Government asserts this will make it "easier and quicker for people with severe or terminal conditions to get the vital support they need". The consultation on these changes will conclude on July 23.

July 30 - Lloyds £175 switch offer ends

The Lloyds £175 switch offer will come to an end on July 30. Lloyds Bank is set to withdraw its £175 switch offer on July 30. The payout is reserved for customers who transition to a Club Lloyds account between May 18 and July 30, subject to the transfer of three direct debits.

Besides the switching bonus, Club Lloyds patrons can also handpick from a medley of other benefits, such as a Disney+ subscription, Vue or Odeon cinema tickets, a magazine subscription, or a Coffee Club and Gourmet Society membership.

Additionally, customers can reap the advantages of an associated regular saver that delivers a fixed interest of 6.25% on up to £400 per month. Nevertheless, remember that a £3 monthly fee is charged in association with the Club Lloyds account, except when at least £2,000 is deposited each month.

Customers who have previously received switching cash from Lloyds, Bank of Scotland or Halifax since April 2020 will not be eligible for the £175 switch money.

July 31 - Payment on account deadline

Millions of self-assessment taxpayers would be required to make a "payment on account" by this date. Generally applicable to self-employed professionals or those with untaxed income, this advance payment for your tax bill is one of two payments that need to be made annually the first due by January 31 midnight and the second by midnight on July 31.

If you don't pay on time, penalties may apply and interest will accrue on the outstanding tax, currently at 7.75%, which is set at 2.5 percentage points above the Bank of England base rate. Additionally, if tax is still owed after this payment, a further "balancing payment" might be required by January 31, 2025.

July 31 - Tax Credits renewal deadline

The deadline for Tax Credits renewal is July 31. For those receiving Tax Credits, the deadline to renew your claim is July 31. HMRC has completed dispatching Tax Credit renewal packs.

If you haven't received yours, you can request one by phone. It's imperative for Tax Credit recipients to renew annually to avoid cessation of their benefits.

Renewals can be done online via your GOV.UK account, through the HMRC app, by calling the HMRC Tax Credit helpline at 0345 300 3900, or by posting back the renewal pack sent by HMRC.