July money changes you need to be aware of - including energy bills and cost of living payment

July is set to usher in new money changes affecting the outgoings of households across the UK. From energy bills to tax credit deadlines, you may risk a nasty surprise if you don’t tune in.

With the economy still in recovery, it is hard for many across Britain to keep on top of their finances but there are key changes being brought in this month that could have a huge impact on household incomes.

People in England, Scotland and Wales are set to see a significant drop in their energy bills in July after Ofgem slashed the energy price cap. While millions of people in receipt of certain disability benefits are approaching the last day to receive their cost of living payment.

Here’s all the money changes coming in July you need to be aware of and how they could affect your bank balance.

Money changes in July to be aware of 

Energy price cap cut 

Ofgem confirmed the typical household will now pay £2,074 a year on its gas and electricity bill from July 1.  This is £426 a year less than the previous rate which stood since October last year.

Ofgem sets the maximum price that can be charged per unit of gas and electricity to households on variable or default tariffs in England, Scotland and Wales. Therefore, suppliers can’t charge you more for each kilowatt hour (kWh) than the cap, which is set at £0.30 per KWh.

However, this doesn’t mean you can’t exceed this total or pay more or less on your energy bill. The cap regulates how much energy you will pay for in a given hour and the £2,047 cap is an average figure households are expected to pay.

The way consumers pay for their energy, their location, meter type, and consumption, will affect whether an energy bill totals to less than or more than the average price cap. It should also be noted that while this is a reduction in how much energy firms are able to profit from you in a given hour, the government is no longer supporting homeowners with the £400 energy discount provided during the winter.

Tax credit renewal ends soon 

Tax credits are Government payments which give people on low incomes, or people with disabilities, extra help - topping up income for everyday living. However, those in receipt will need to renew their claim by July 31 to make sure they continue receiving financial support.

Claimants already on tax credits should have received a renewal pack from HMRC instructing those eligible on how to renew. However, if you are yet to receive yours, call HRMC on 0345 300 3900 and enquire.

Alternatively, you can renew your claim by July 31 on the HRMC app. Claimants will need their GOV.UK account details at hand.