Various financial changes will occur in June that may affect your personal budget.
Some of the changes, which come amid the just-announced general election, include new cost-of-living payments for some people living in certain areas. Meanwhile, some Universal Credit applicants may see their payments increase depending on when their final assessment period occurs.
The Bank of England may also make a major new announcement affecting the British economy regarding how much of your mortgage you will have to repay when it looks at interest rates again in June.
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There’s a new law that pet owners need to know too, otherwise you could get caught and fined and start seeing banknotes with King Charles’s picture on your money. You can find a full breakdown of all currency changes coming in June 2024 here.
Removal of Multiple Dwellings Tax Deduction – June 1
During the Spring Budget, Chancellor Jeremy Hunt confirmed the government would scrap multiple housing allowances for stamp duty land tax.
Those who purchase more than one house in a single transaction (for example, houses and flats purchased together, mixed-use properties such as shops with folding roofs or outbuildings) will not benefit from tax relief as of June 1. and so you pay more on larger purchases.
Originally, the aid was intended to attract investment into the private rental sector, but HMRC’s review of the process 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 the value of properties falling. The Chancellor said the removal of Multiple Housing Allowance would free up around £385 million a year for the Treasury.
Payment of £80 for some through the Household Support Fund – 3 June
Vulnerable households could start receiving help from the Household Support Fund after it was extended earlier this year. Municipalities use this fund to provide extra support to those struggling with the cost of living. Support may come in the form of free school meal vouchers or other vouchers to help pay for basic needs such as clothing, rent and energy bills.
Some households may even receive living expenses payments. This includes households covered by Cornwall Council, which has confirmed it will pay £80 from 3 June.
Not all households will be eligible for support through the HSF, and many councils are providing assistance in different ways. To find out if you qualify in your area, contact your local council to find out what support they may have available through the HSF in June.
New King Charles banknotes enter circulation – June 5
King Charles’ face will appear on banknotes for the first time from June 5. The King’s portrait will appear on the obverse of the banknotes and in a cameo in the transparent security window that can be viewed from both sides.
Meanwhile, the images on the back will remain unchanged; Sir Winston Churchill will be £5, Jane Austen £10, JMW Turner £20 and Alan Turing £50.
Notes currently in circulation featuring the late queen will remain legal tender, with both versions in circulation together.
Cat owners could be fined up to £500 – 10 June
A new law is coming into force that pet owners need to know about – or they’ll face a hefty fine.
All cat owners must have their cats microchipped before June 10 this year or face fines of up to £500. According to the charity Cats Matter, around 25 per cent of cats in the UK may not be microchipped.
A spokesman said: “Once the new law comes into force, owners whose cats have not been microchipped will be given just 21 days to have them microchipped. After 21 days, owners could face fines of up to £500. The hard part is changing the law. “It’s up to cat owners to make sure it’s the success we know it can and will be.”
Bank of England interest rate statement – 20 June
Members of the Monetary Policy Committee (PPC) will review the national interest rate on June 20. The bank had previously voted to keep interest rates at 5.25 percent, the highest level in 16 years.
The bank has consistently said it wants to reduce inflation to 2 percent, and that is likely one of the key factors examined before members vote on the new interest rate. Fortunately, inflation fell from 3.2 percent in March to 2.1 percent in April; It is the lowest level since July 2021, when inflation was recorded at 2 percent.
Interest rates are used to help determine the amount paid back on loans such as mortgages. Low interest rates mean mortgage payments will also be low.
Although mortgage interest rates have fallen slightly since December, around 45 per cent of fixed-rate mortgage holders will face higher monthly repayments when they reprice their mortgages by the end of 2026.
Changes to Debt Relief Orders – June 28
Debt Relief Orders (DRO) will undergo significant reform on 28 June. The removal of the £90 charges was already implemented in April this year; The increase in the debt threshold and the value of a vehicle will come into effect next month.
The total amount of debt covered by a DRO will increase from £30,000 to £50,000, while the value of a vehicle a person can own when they enter a DRO will increase from £2,000 to £4,000.
Andrew Shore, Deputy Director of Policy at the Insolvency Service, said: “Some people need a car for work, mobility or family reasons, but the value of vehicles has increased a lot in recent years. Increasing the value of the car you can own will enable more people to access a DRO when they need it.
“And those who owe up to £50,000 but don’t have the money to repay creditors will be able to see a way out of huge debts. The changes reflect the challenges people are facing now and will ensure DROs are available to people who really need help.”
Take a meter reading before the new price ceiling – June 30
Households are being asked to take new meter readings before the new energy cap comes into force on July 1. By taking meter readings the day before the cap goes into effect, bill payers can avoid being overcharged for their electricity due to the way companies estimate it. How much do you pay for your usage?
Additionally, an accurate meter reading can provide an extra layer of support if you need to dispute a bill or claim that you’ve been charged incorrectly or unfairly.
HMRC letter for families receiving Child Benefit
Throughout June families will receive letters which they must reply to or risk losing more than £1,300. HMRC will send letters requesting additional information between 24 May and 17 July.
Underlining the urgency, Andy Wood of Crypto Tax Degens said: “Parents will soon receive a letter from HMRC asking them to confirm whether their child is enrolled in full-time education or training. Your continued use of child benefits depends on whether you have a child benefit.” . Child under 16 years of age (or 20 years of age if the child is in education or training).”
He explained: “Child benefit payments amount to a significant sum and have the potential to reach up to £1,331 per year for the first child and £881 per year for each additional child. The letter should be sent to all parents by May. Between 24 and 17 July Once there, parents can conveniently continue to renew their child benefit claim online.
“Gov.uk has warned that parents have until 31 August to take action, otherwise their payments will be automatically stopped. Although child benefit payments are available to all individuals with children, those on higher incomes are required to pay the High Income Child Benefit Charge .”
New full benefit rate for some claimants
Some people claiming benefits have yet to receive the new full rate, which the Department for Work and Pensions (DWP) introduced last month. This is because the new rate will not be paid until the first assessment period on or after April 8.
Since benefit payments are made after the first assessment period closes, some people may have received the old rate this month because the assessment period started before April 8. Therefore, the new full fee must be paid from 1 June if it has not already been paid. has already been taken.