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MILLIONS of households will want to keep an eye on the seven major money changes that are happening in the coming weeks.
July is a big month for your finances and on the first day of the month, households will be rewarded with a drop in energy bills.
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The move will save the typical household over £400 a year – but it’s not the only change to look out for.
The deadline to receive a £150 cost of living payment is also coming up and one major broadband provider is raising prices.
Thousands more households on legacy benefits will be moved over to Universal Credit as the DWP continues to ramp up the Managed Migration process.
There are also three other deadlines that millions of households will need to act upon before the end of July.
We explain what’s happening and when, and how it will affect your wallet.
1. Energy bills to fall
Typical gas and electricity bills are set to drop by £426 a year from Saturday, July 1.
Ofgem’s Energy Price Cap will come back into force when the Government’s Energy Price Guarantee expires.
The cap sets a maximum limit on what suppliers can charge customers per unit of electricity and gas.
The change means the average energy direct debit will go from paying £2,500 a year for their energy to £2,074 from July 1.
As that’s for the typical dual fuel bill, you might pay more or less depending on your usage.
And those who don’t pay by direct debit could end up paying over £100 more.
And household’s should take a meter reading to make sure they are being billed correctly.
2. Deadline to receive £150 cost of living payment
Six million people have already started to receive a £150 Disability Cost of Living Payment over the next few weeks.
The tax-free cash will be paid directly into recipients’ bank accounts between now and July 4.
To get the £150 cost of living payment, you have to already be receiving any one of the below benefits:
- Disability Living Allowance
- Personal Independence Payment
- Attendance Allowance
- Scottish Disability Benefits (Adult Disability Payment and Child Disability Payment)
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
Those who were already receiving one of these benefits in April will get their payment over the next few weeks.
If you were or are awarded a qualifying benefit at a later date, you will still get the £150 automatically – it will just come after July 4.
There is a huge list of medical conditions that could mean you qualify for the £150 payment.
This is because they would make you eligible for one of the above benefits.
The Sun has put together a list of medical conditions that mean you qualify for the payment.
3. Now Broadband price rise
Now is increasing the price of its broadband tariffs for the first time since its launch in 2018.
The move is expected to affect thousands of customers but Sky, which owns the brand, wouldn’t tell us the exact number.
The average customer will see their bill increase by £42 a year – which works out to £3.50 more per month.
The hike in prices will take effect from Wednesday, July 5.
A statement on the Now website said: “As you might know, many other providers are raising their prices, and we’ll be making some changes.
“From July 5, 2023, the prices of our broadband membership plans will be going up by £3.50.
“You’ll see the price change reflected in your bill on or after July 5.
“If you’re on an offer, you’ll continue to enjoy a discounted price until your offer end date, but your payments will increase by £3.50 a month.”
4. Thousands more to be moved to Universal Credit
The government will continue moving those on so-called “legacy benefits” such as tax credits onto Universal Credit.
Millions of people are still on these old-style benefits, but the government plans to move all claimants onto Universal Credit by the end of 2024.
The move, called Managed Migration, began in April this year following a successful pilot in Harrogate in July 2019.
Claimants will receive a notice in the post which encourages them to move over to Universal Credit instead.
Households will continue to receive the payments that they are entitled to once moved to Universal Credit, according to the DWP.
In most cases, individuals will be better off following a move from legacy benefits to Universal Credit.
But 300,000 could be worse off, and should not move until they absolutely have to as they could end up with less money.
Where an individual’s Universal Credit payment is lower than their legacy benefits entitlement, they will usually be entitled to a top-up payment known as Transitional Protection.
This means that their Universal Credit entitlement will be the same as their legacy benefit entitlement at the point they move.
Recipients who receive a migration notice and fail to act will risk losing their current benefits entitlements.
It’s also worth noting that a change in circumstances before you receive a managed migration notice might deem you ineligible for tax credits and if so you’ll may be asked to apply for Universal Credit directly instead.
You should consider carefully what moving over means for your money, as you can’t move back once you’re on Universal Credit.
The DWP has said that all tax credit households across the UK will have been contacted about moving to Universal Credit by September.
5. Deadline to renew tax credits
Tax credit customers have until July 31 to check the information in their renewal pack is correct.
They’ll need to notify HMRC of any changes to their circumstances which may affect their claim.
There are two types of tax credits – working tax and child tax credit.
They’re given to people who are on low incomes, are registered as disabled or have children that are dependent on them.
The rates vary depending on your personal situation and there are a number of elements, but you can get up to £2,280 if you’re eligible for the basic element of working tax credit or up to £3,235 if you claim the child element of child tax credit.
Universal Credit has replaced tax credits for new claimants, but many have not yet made the switch over to the newer benefit.
Everyone will be transitioned over to receiving Universal Credit eventually and by 2024, the government has said.
But if you already claimed tax credits in the previous financial year you’re able to renew them once you’ve received your renewal pack.
6. Deadline to use stamps without barcodes
Royal Mail is phasing out non-barcoded stamps on 31 July.
It has already started to phase in newer barcoded stamps, and these will replace old-style stamps within just weeks.
This means anyone with a stash of 1st or 2nd class stamps has just weeks left to use them before they become invalid.
If they don’t and continue to use old stamps after July 31, they could face a surcharge in the same way that you would if you sent mail with no or insufficient postage.
You’ll only be able to use the new stamps from that date.
Stamps can also be traded in before the cut-off deadline – and Royal Mail will let you do it for free.
Customers have to fill out a “Swap-Out” form on the Royal Mail website or call the postal giant directly to request a form.
Alternatively, you can get one in person from a local delivery office – but not a Post Office.
You can find your local delivery office by using the online locator tool on the Royal Mail website.
You’ll then have to post back the stamps you want to swap to a Freepost address.
7. Tax ‘pay on account’ deadline
If you’re self-employed, the deadline for your second ‘payment on account’ bill will be due on July 31.
These are two advance payments that most taxpayers need to make each year.
For most, the first bill was due on January 31. The amount depends on how much your previous tax bill was worth.
However, if your last self-assessed tax bill was less than £1,000, you shouldn’t need to make a second payment.
You also won’t need to pay another bill if you’re already paid more than 80% of the tax you owe.
If you still have tax to pay after you’ve made both your “payments on account”, you’ll need to make a “balancing payment” by midnight on January 31 of the following year.
