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This August will see many changes to people’s lives through a variety of new rules, regulations and other alterations. There is a Bank Holiday which will mean changes to the date people will receive benefits payments and people will also see the continued support from the government’s energy price guarantee, however, if you fancy the occasional tipple the long-delayed alcohol tax rise will come into action on August 1.
There are also dates to be wary of – on July 31 you will no longer be able to use most non-barcoded stamps which will become worthless – although you can still exchange them. People getting tax credits should have updated their claim before the start of August, although it is possible to do this afterwards, as described below.
For people hunting for a new car there is the chance of getting it with the latest numberplate if they time it right and the controversial new London Ultra Low Emission Zone will get its controversial huge expansion. Here is our rundown of the key dates and changes we can expect in August:
Changes to Alcohol Duty from August 1
In the Spring Budget 2023, the government said it would increase the duty rates for alcohol products being introduced from August 1 in line with the Retail Price Index (RPI). This includes all alcoholic products produced in, or imported into, the UK. The government will also increase the value of Draught Relief from 5% to 9.2% for qualifying beer and cider products and from 20% to 23% for qualifying wine, other fermented products (previously made-wine) and spirits. Alcohol Duty rates have remained frozen since Autumn Budget 2020. Price increases will be around 5p more for a 500ml bottle of beer, 2p on a pint of draught cider and 5p on a 250ml glass of wine.
Bank holiday brings payment schedule change
The usual state support in the shape of benefits and pensions payments will also be going out in August, although the arrival of the Summer Bank Holiday on Monday 28 means that anyone expecting to receive their money on that date can typically expect it to be paid into their bank accounts one working day earlier (Friday 25, for instance).
That applies to anyone expecting to receive any of the following from the DWP in August:
- Universal Credit
- State pension
- Pension credit
- Disability living allowance
- Personal independence payment
- Attendance allowance
- Carer’s allowance
- Employment support allowance
- Income support
- Jobseeker’s allowance
Energy Price Cap
The average household energy bill fell by £426 a year from July after Ofgem dropped its price cap following tumbling wholesale prices. The regulator announced it is cutting its price cap from £3,280 to £2,074 from July 1, marking the first time consumers on default tariffs have seen their prices fall since the global gas crisis took hold more than 18 months ago. At its peak, the price cap reached £4,279 and, “whilst today’s level is lower than last quarter, it is still above the levels it was before the energy crisis took hold, meaning many households could still struggle to pay bills”, the regulator said.
Households have been partly shielded from the most recent rise in prices by the Government’s Energy Price Guarantee (EPG), which limited annual energy costs to £2,500 for the average household – subsidising Ofgem’s price cap. Ofgem’s latest cut means its cap will again govern household bills, resulting in a reduction of £426 from £2,500 to £2,074 – a fall of about 17%.
Stamps
From July 31 will not be able to use non-barcoded everyday stamps – those with the Queen’s profile on. After then they become worthless. This follows the introduction of a 6 month grace period from the initial 31 January deadline. You can either use up your non-barcoded stamps before this new deadline or swap them for the new barcoded ones. Your non-barcoded stamps can be exchanged for new barcoded versions through our Stamp Swap Out scheme. To swap out your stamps, simply:
Pick up or print out a swap out form (can be got from Post Office)
Complete your form and include your stamps
Send free of charge to “Freepost SWAP OUT”
However, you can still use themed, commemorative and non-barcoded Christmas stamps beyond this date. Before this deadline, you need to either use your old stamps or swap them for free for barcoded versions. For more information click here.
Consumer Duty
The Financial Conduct Authority’s (FCA) Consumer Duty comes into force from July 31 2023 for existing products and services, seeks to ensure customers receive these ‘good outcomes’. Under the Duty, firms should provide customers with products and services that meet their needs and offer fair value. Customers should receive communications they can understand. They should get the customer support they need, when they need it. Britain’s financial watchdog said this week it would press ahead with tougher protections for retail customers that put senior officials at banks and insurers personally on the hook if they peddle rip-off products. Sheldon Mills, the FCA’s executive director of consumers and competition said: “Selling suitable products at a fair price, providing good standards of customer services and communications that people can understand shouldn’t really be a controversial thing.”
Tax credits
More than 171,350 tax credits customers have until July 31 to update their annual claim which can be worth up to £200 a month. Customers will have received one of two types of renewal packs, HMRC said. Those who received a renewal pack with a red line across the first page and the words ‘reply now’ must respond to HMRC or risk having their payments stopped. Failure to renew also means that no new claim is made, and any provisional payments received from April 2023 will be overpaid (because there is no claim) and HMRC will seek to recover them via direct recovery. However, regulations allow the claim to be restored provided you renew it within 30 days from the date on the notice telling you that your payments are to be stopped (technically called the Statement of Account). If you failed to renew within the 30-day grace period, the claim can only be restored if you can show that you have a good reason for failing to renew by the deadline as long as you submit the renewal papers by the later deadline of 31 January 2024.
Life changes HMRC needs to know about include:
- relationship changes, including marriage or separation
- changes to the cost of childcare
- your child leaves home
- working hours fall below 30 hours a week
- The full list of changes that could affect customers’ tax credits is on GOV.UK.
New Number Plates
For new vehicles, registration plates change twice a year. From 1 March, new vehicles displayed ‘23’ as their third and fourth digits. From 1 September they will display ‘73’ – meaning many drivers will put off getting their new vehicle in August. In addition, number plates will have to conform to lettering standards introduced in 2022. All number plates must now have solid black lettering, as some two-tone number plates were being used to avoid detection by Automatic Number Plate Recognition (ANPR) cameras.
Expansion of London’s Ultra Low Emission Zone
The Ultra Low Emission Zone (ULEZ) in London currently covers the areas within the North and South Circular Roads. Those with vehicles that don’t meet the emissions standards must pay a £12.50 fee each time they pass through the zone. This is intended to improve air quality by putting off drivers that have the most pollutant vehicles. To take this a step further, on August 29 2023, the ULEZ will be extended to all 33 boroughs in London. The zone applies to cars, motorbikes, vans and specialist vehicles up to and including 3.5 tonnes, plus minibuses up to and including 5 tonnes. While this is likely to affect thousands of drivers and bikers, it’s hoped that it will encourage people to use public transport more, or switch to a greener vehicle.
Changes to the Skilled Worker migration route
Following an interim review by the Migration Advisory Committee (MAC), the Shortage Occupation List is being updated to include certain construction and fishing industry occupations. The update will come into effect from 7 August 2023. The Shortage Occupation List offers lower salary requirements and lower Skilled Worker visa application fees for jobs identified as being in shortage and where immigration is a sensible part of addressing that shortage.
All jobs in the following occupations in construction are being added to the list:
- 5312 Bricklayers and masons
- 5313 Roofers, roof tilers and slaters
- 5315 Carpenters and joiners
- 5319 Construction and building trades not elsewhere classified
- 5321 Plasterers
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