AUGUST has brought a whole of host changes for your money – with more still to come.
All of the financial changes are important to know so you can plan ahead and avoid being caught off guard.
There’s still a whole range of money changes to come in AugustGetty
They include changes to universal credit and benefit payments, the energy price cap announcement and a Tesco Clubcard deadline.
Here we explain what’s happening and when, as well as what it means for your money.
1. UK inflation rate – August 16
The UK’s inflation rate for July will be revealed on August 16 by the Office for National Statistics (ONS).
Inflation is a measure of how the price of goods and services has changed over the past year.
In June, the inflation rate fell by more than expected to 7.9% – down from 8.7% – meaning prices are still rising but at a slower pace.
While the announcement in itself isn’t a change, the July rate is important as it’s typically used to set the increase in rail fares.
These will take place from the start of 2024.
Last year, the July rate came in at 12.3% – but the government capped the rail hike to 5.9% to help commuters.
2. Energy Price Cap announcement – August 25
The energy regulator Ofgem will announce the new price cap, which will come into effect on October 1 until December 31.
In May, the cap fell by £1,206 from £3,280 to £2,074 a year.
But the energy price guarantee is only a cap on unit rates – so if you use more energy, expect to pay more than the average household.
There are schemes offered by suppliers, local councils, charities and the government that could help you if you’re struggling with your energy bills.
3. Bank holiday benefit payment changes- August 28
Millions of households on Universal Credit and benefits may get their payments earlier due to the Bank Holiday on August 28.
If you usually get paid on the 28th, you’ll see your cash land in your bank account a few days before – most likely Friday, August 25.
This affects the following benefits:
Attendance AllowanceCarer’s AllowanceEmployment Support Allowance (ESA)Jobseeker’s Allowance (JSA)Pension CreditPersonal Independence Payment (PIP)State pensionUniversal CreditWorking Tax CreditChild Tax CreditChild BenefitGuardian’s Allowance
Bear in mind that as your payment will be made earlier in August, make sure you budget for the following month.
Income Support, Jobseekers allowance and pension credit payments usually arrive every two weeks while the rest arrive every four weeks.
4. Tesco Clubcard vouchers to expire – August 31
Tesco has warned that there £11.5million worth of Clubcard points due to expire after August 31.
The points, which were first issued in August 2021, have to be redeemed within two years.
Shoppers can use Clubcard vouchers in-store and online to save money on their Tesco shop.
If you decide to use your vouchers for your Tesco shop, every 150 points can be exchanged to the value of £1.50.
Your vouchers can also be used to cut the cost of car fuel and can even be doubled in value to spend at over 100 reward partners including Pizza Express and Zizzi.
You can also swap vouchers for money off your Tesco mobile bill.
5. Universal Credit migration – throughout August
The government will move more households on so-called “legacy benefits” such as tax credits onto Universal Credit.
From August, the Department of Work and Pensions (DWP) will make contact with people in the following areas:
West ScotlandWest YorkshireStaffordshireDerbyshireSouth London
The government plans to move all claimants onto Universal Credit by the end of 2024.
The move, called Managed Migration, began in May last year and came after a successful pilot in Harrogate in July 2019.
Once you receive a letter, you have three months to move over, or you could lose your current benefits.
In most cases, individuals will be better off following a move from legacy benefits to Universal Credit.
But 300,000 could be worse off, and should not move until they absolutely have to as they could end up with less money.
6. Changes to PIP – throughout August
Three major changes to Personal Independence Payment (PIP) benefits are due to be rolled out over the summer.
From August the DWP is introducing a new “light-touch” PIP review.
That means the new simplified form will be used to assess a long-term claimant’s eligibility for the benefit.
Unlike the usual 16-page award review form that’s issued to those with shorter-term PIP awards, those with 10-year awards will only need to complete a shorter six-page form.
Another major change is the scrapping of face-to-face assessments for those with long-term awards.
Unless a person’s medical condition has changed a face-to-face assessment will not be required as of next month.
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