June will see a series of financial changes that could impact your personal budget. Amid recently announced general elections, some of the changes include new cost-of-living payments for individuals living in specific areas.
In addition, 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 major announcement that could impact the UK economy and your mortgage repayments when it reviews interest rates in June.
Pet owners should be aware of a new law to avoid possible fines, and banknotes with the image of King Charles could appear in your money. Here’s a comprehensive look at all the monetary changes happening in June 2024, reports the Manchester Evening News.
Abolition of the tax benefit for multiple homes – June 1
In the spring budget, Chancellor Jeremy Hunt confirmed that the government will abolish the multi-dwelling stamp duty land tax exemption. Those who buy more than one property in one transaction – such as houses and apartments bought together, mixed-use properties such as shops with a flat above or houses with an outbuilding – will no longer benefit from the tax relief from June 1. to higher costs for larger purchases.
Initially the relief was intended to attract investment into the private rental sector, but a review of the process by HMRC found that this did not make a significant difference and instead led to abuse of the system. The move has been criticized by private investors who say the change in stamp duty will lead to property values falling. The Chancellor said the abolition of Multiple Dwellings Relief will generate around £385 million a year for the Treasury.
£80 payment for some through the Households Support Fund – June 3
Vulnerable households could receive benefits from the Household Support Fund after it was extended earlier this year. Municipalities use this fund to provide extra support to people struggling with the costs of living.
Support can come in the form of free school meals vouchers or other vouchers to help pay for essentials such as clothing, rent and utility bills. Some households could even receive compensation for living expenses. This includes households covered by Cornwall Council, which confirmed they will make £80 payments from June 3.
Not all households are eligible for support through the HSF and many municipalities offer different forms of assistance. To find out if you qualify in your area, contact your local 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 will adorn the front of the banknotes and will also appear in a cameo in the transparent security window, visible from both sides.
The reverse of the banknotes retains their current design, with prominent British figures such as Sir Winston Churchill on the £5 note, Jane Austen on the £10 note, JMW Turner on the £20 note and Alan Turing on the £50 note ticket. Existing banknotes depicting the late Queen Elizabeth II will remain legal tender, with the old and new versions circulating together.
Cat owners face a £500 fine – June 10
A coming law will require all cats to be microchipped by that date or owners could face a hefty fine. Charity Cats Matter has highlighted that an estimated 25% of British cats may not currently be microchipped.
A spokesperson for the charity said: “Once the new law comes into effect, owners found without their cat microchipped will have just 21 days to have one implanted. After these 21 days, owners can be fined up to £500. We’ve done the hard part by changing the law. Now it’s up 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 expected to review national interest rates on June 20. Previously, the Bank had voted to keep interest rates at 5.25 percent – the highest level in 16 years.
The Bank has consistently stated its intention to reduce inflation to 2 percent, which is likely to be one of the most important factors taken into account before members vote on the new rate. Encouragingly, inflation fell from 3.2 percent in March to 2.1 percent in April, the lowest level since July 2021, when inflation was recorded at 2 percent.
Interest rates play a crucial role in determining the amount repaid on loans such as mortgages. A lower interest rate means lower mortgage costs.
Despite a slight decline in mortgage rates since December, around 45 percent of fixed-rate mortgage holders are expected to face higher monthly repayments by the end of 2026 if they revalue their mortgages.
Changes to Debt Relief Orders (DROs) – June 28
The £90 charge has already been abolished in April this year and increases to 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 a person can own when entering a DRO will rise from £2,000 to £4,000.
Andrew Shore, deputy director of policy at the Insolvency Service, commented: ‘Some people need a car for work, mobility or family reasons, but the value of vehicles has risen dramatically in recent years. will ensure more people have access to 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 find a way out of overwhelming debt. The changes reflect the challenges people are now facing and will ensure DROs are available to people who really need that help.”
Carry out a meter reading before the new price limit – June 30
Households across the UK are being encouraged to take a new meter reading before July 1, when the new energy price cap comes into effect. This simple measure, taken the day before the cap was introduced, could prevent bill payers from overpaying for electricity due to the way energy companies calculate usage costs. This strategic meter reading could also provide much-needed support if billing disputes arise or allegations of unfair charges are made.
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 asking for a response. Failure to do so could mean missing out on more than £1,300. These letters are received between May 24 and July 17 and request additional information.
Andy Wood of Crypto Tax Degens has highlighted the importance of quick action, saying: “Parents will soon receive a letter from HMRC asking them to confirm whether their child will continue to attend full-time education or training. Whether they remain eligible child benefit depends on whether you have a child under the age of 16 (or 20 if the child is in education or training).”
He further clarified: “Child benefit is a substantial amount, with the potential to reach up to £1,331 per year for the first child and up to £881 per year for each additional child. The letter will be sent to all parents between May 24 and July 17 and will include a QR code directing recipients to the gov.uk website. Once there, parents can easily renew their child benefit application online.
“Gov.uk has warned parents until August 31 to take action or their payments will automatically stop. While child benefit payments are available to all those with children, those on higher incomes are liable for the high child benefit.”
New full benefit rate for some claimants
Some benefit claimants are still waiting for the new full rate introduced by the Department for Work and Pensions (DWP) last month, as the new rate only comes into effect during the first assessment period on or after April 8.
Because benefits are paid after the close of the initial assessment period, some individuals may have received the previous rate this month since the assessment period began before April 8. If this has not yet been received, the new full rate should have been paid from 1 June.