A series of financial changes are due to occur in June that could impact your personal budget. Amidst a newly announced general election, some of the alterations include new cost of living payments for individuals residing in specific areas.
Additionally, certain Universal Credit claimants may see an increase in their payments, depending on when their last assessment period was. The Bank of England is also expected to make a significant announcement that could affect the British economy and your mortgage repayments when it revisits interest rates in June.
Pet owners should be aware of a new law to avoid potential fines, and banknotes featuring King Charles' image may start appearing in your cash. Here's a comprehensive rundown of all the monetary changes happening in June 2024, reports the Manchester Evening News.
Abolition of Multiple Dwellings Relief tax break - June 1
In the Spring Budget, Chancellor Jeremy Hunt confirmed that the government will abolish the multiple dwellings relief for stamp duty land tax. Those who buy more than one dwelling in a single transaction - such as houses and flats bought together, mixed-use properties like shops with a flat above, or houses with an annexe - will no longer benefit from the tax relief from June 1, leading to higher costs on larger purchases.
Initially, the relief was intended to attract investment in the private rental sector, but a HMRC evaluation of the process found it made no significant difference and was instead leading to abuse of the system. The move has been criticised by private investors who say the change in stamp duty will lead to the value of properties dropping. The chancellor said abolishing Multiple Dwellings Relief will raise around £385 million a year for the Treasury.
£80 payment for some via Households Support Fund - June 3
Vulnerable households could begin receiving benefits from the Household Support Fund after it was extended earlier this year. Councils use this fund to give extra support to those struggling with the cost of living.
Support may come in the form of free school meals vouchers or other vouchers to help pay for essentials such as clothing, rent, and energy bills. Some households could even receive cost of living payments. This includes households covered by Cornwall Council, which confirmed it will issue £80 payments from June 3.
Not all households will be eligible for support through the HSF and many councils are providing different forms of help. To find out if you qualify in your area, you should contact your council to see what support they will have available through HSF in June.
New King Charles banknotes enter circulation - June 5
From June 5, King Charles' likeness will grace British banknotes for the first time. His portrait is set to adorn the front of the notes and will also be featured in a cameo within the transparent security window, which can be seen from both sides.
The reverse side of the notes will retain their current designs, featuring prominent British figures such as Sir Winston Churchill on the £5 note, Jane Austen on the £10, JMW Turner on the £20, and Alan Turing on the £50. Existing banknotes with the image of the late Queen Elizabeth II will remain legal tender, with the old and new versions circulating together.
Cat owners face £500 fine - June 10
A forthcoming law requires all cats to be microchipped by that date, or owners could face a hefty penalty. Charity Cats Matter has highlighted that an estimated 25% of UK cats may currently be without microchips.
A spokesperson for the charity stated: "Once the new law comes into force, owners found without their cat microchipped will have just 21 days to have one implanted. After the 21 days, owners may then face a fine of up to £500. We have done the hard part by getting the law changed. Now it is down to cat owners to make sure this is the success we know it can and will be."
Bank of England interest rate decision - June 20
The Monetary Policy Committee (MPC) is scheduled to review the national interest rate on June 20. Previously, the Bank had voted to maintain interest rates at 5.25 per cent - a 16-year high.
The Bank has consistently expressed its intention to reduce inflation to 2 per cent, which is likely one of the key factors being considered before members vote on the new interest rate. Encouragingly, inflation dropped to 2.1 per cent in April, down from 3.2 per cent in March, marking the lowest level since July 2021 when inflation was recorded at 2 per cent.
Interest rates play a crucial role in determining the amount repaid on loans such as mortgages. Lower interest rates mean lower mortgage payments.
Despite a slight decrease in mortgage rates since December, approximately 45 per cent of fixed-rate mortgage holders are expected to face higher monthly repayments when they reprice their mortgage by the end of 2026.
Changes to Debt Relief Orders (DROs) - June 28
The £90 fees were already removed in April of this year, and increases in the debt threshold and vehicle value will be implemented next month. The total amount of debt covered by a DRO will rise from £30,000 to £50,000, while the value of a vehicle that a person can own when entering a DRO will increase from £2,000 to £4,000.
Andrew Shore, assistant director of policy at the Insolvency Service, noted: "Some people need a car for work, mobility or family reasons, but the value of vehicles has risen a lot in recent years. Raising the value of the car you can own will enable more people to access a DRO when they need one.
"And those who owe up to £50,000 but don't have the money to make repayments to creditors will be able to see a way out of overwhelming debt. The changes reflect challenges that people are facing now and will make sure DROs are available to people who really need that help."
Take a meter reading before new price cap - June 30
Households across the UK are being encouraged to take a fresh meter reading before July 1, when the new energy price cap steps into effect. This simple measure, taken the day before the cap's implementation could prevent billpayers from overpaying on electricity due to the energy companies' estimation method of usage charge. This strategic meter reading could also provide much-needed support should billing disputes arise or allegations of unfair charges be levelled.
HMRC letter for families receiving Child Benefit
Looking ahead to June, parents receiving Child Benefit should keep an eye out for a letter from HMRC that requires a response, failure to do so could mean losing out on over £1,300. These letters will be arriving between May 24 and July 17 and will ask for additional information.
Andy Wood from Crypto Tax Degens has emphasised the importance of prompt action, saying: "Parents will soon receive a letter from HMRC, asking them to confirm whether their child remains enrolled in full-time education or training. Remaining eligible for child benefits depends on whether you have a child under 16 (or 20 if the child is in education or training)."
He further clarified: "Child benefit payments amount to a substantial sum, with the potential to reach up to £1,331 annually for the initial child and up to £881 yearly for each additional child. The letter is due to be sent to all parents between May 24 and July 17 and will contain a QR code guiding recipients to the gov.uk website. Once there, parents can conveniently proceed to renew their child benefit claim online."
"Gov.uk have warned parents have until August 31 to take action or their payments will automatically stop. Although child benefit payments are available to all individuals with children, those with higher incomes are liable to pay the High Income Child Benefit Charge."
New full benefit rate for some claimants
Some benefit claimants are still waiting to receive the new full rate that was introduced last month by the Department for Work and Pensions (DWP), as the new rate only comes into effect during the first assessment period on or after April 8.
As benefit payments are disbursed after the closure of the first assessment period, some individuals may have received the previous rate this month since the assessment period commenced before April 8. Consequently, if it hasn't been received already, the new full rate should be paid from June 1.
