Ten things happening in July that will affect your money
There’s a summer Budget, UK call charge changes and bill hikes afoot.
There are a number of things occurring in July that could impact your finances.
Here are 10 you should you should know about.
The summer Budget
On 8th July the Government will deliver the second Budget of the year.
The summer Budget follows the surprise Conservative Party majority win in the May General Election.
The Chancellor George Osborne is expected to provide more detail on the £12 billion of spending cuts promised in the Conservative manifesto.
Read Summer Budget 2015: what we know so far for more details.
Freephone numbers finally free on mobiles
From 1st July mobile companies will no longer be able to charge users for calls to Freephone numbers, under new Ofcom rules.
Mobile users typically incur a charge of between 14p and 40p per minute, but under the reforms numbers beginning with 0800 and 0808 will no longer attract a charge.
0800 and 0808 prefixes are used by a range of businesses and organisations including helplines and charities like Age UK and National Debtline, as well as some Government services.
Ofcom says that less widely used Freephone numbers beginning with 0500 will continue to be chargeable from mobiles, but will be withdrawn from use by 2017.
New charging system for 08, 09 and 118 numbers
Ofcom is also simplifying charges for calls to expensive non-geographic service numbers beginning with 08 (including 084 and 087), 09 and 118, from 1st July.
These numbers are used by banks, directory services and broadcasters, but unless a caller is using a BT landline, the charges can be unclear.
The new system will be made up of two parts: an ‘access charge’, which goes to the phone company, and a ‘service charge’, set by the broadcaster.
Phone companies – both landline and mobile – will have to state what the single access charge for calls will be on bills and when customers take out a new contract.
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Greek crisis
On 5th July the Greek people will vote in a referendum on the deal that has been offered by European creditors regarding the country’s debt.
It's feared that should the people reject the plan, Greece will default on its debt and have to leave the European Union.
Markets across the world are expected to react strongly to the outcome, whichever way it goes.
Holidaymakers heading to Greece now are being advised to carry extra cash as banks are curently closed and there are long queues at ATMs. Some insurers have increased the amount of cash covered under their travel insurance policies.
FSCS deposit protection changes
From 3rd July the Bank of England will boost the Financial Services Compensation Scheme (FSCS) deposit protection limit from £85,000 to £1 million for temporary high balances.
This level of cover will apply for a six-month period for situations where you may have to handle more money than usual, such as when selling your home or receiving a payout from insurance benefits.
The Bank of England is also introducing unlimited cover on money paid out as part of a personal injury claim from this date.
At the same time cover in the event of an insurer failing will be increased from 90% to 100% of the claim for annuities, pure protection, claims from death or incapacity and professional indemnity insurance. Limits for all other types of insurance will remain at 90% of the cover.
Earn 5% interest from your current account
Mortgage support cut
From 6th July the amount of money struggling homeowners can claim through Support for Mortgage Interest (SMI) will fall.
SMI is a means-tested benefit that can be claimed by people receiving Income Support, income-based Jobseekers' Allowance, Employment and Support Allowance and Pension Credit.
It’s designed to cover a borrower’s interest payments to their bank or building society, but not the capital borrowed, and is currently claimed by 161,000 people.
As it stands homeowners can get help with monthly payments on a mortgage worth up to £200,000, based on an interest rate of 3.63%. But following a sharp fall in high-street mortgage rates, the rate will be reduced to 3.12%.
The change means that on a £100,000 mortgage arranged over 25 years the amount that can be claimed each month will fall from £302.50 to £260.
Deadline for tax credit renewal
The deadline for tax credit renewals is 31st July.
Those that already claim tax credits should have recieved a renewal form. If you haven't received yours, call the tax credit helpline on 0345 300 3900.
If you only receive a review notice you just need to make sure the information is correct. If everything is in order your tax credits will renew automatically. If not you’ll need to inform HMRC by the deadline. If you don’t you may be under or overpaid.
If you receive a declaration form with the renewal you will need to complete it and return it to HMRC or renew online by the deadline. Failure to do so will mean your tax credits may stop.
Earn 5% interest from your current account
Self-assessment payment deadline
'Payments on account' are advance payments made by those who fill out a self-assessment return towards their tax bill. Two payments on account have to be made each year – the first by midnight on 31st January, and the second by midnight on 31st July.
If you miss this you will be charged charged interest on what you owe and possibly a penalty on top.
Earn 5% interest from your current account
End of Yourpoints reward scheme
The Yourpoints credit card reward scheme will close from 1st July to both Royal Bank of Scotland and NatWest customers.
RBS announced the change back in April and blamed the European Parliament’s decision to cap interchange fees.
The scheme allowed you to earn one point for every £1 you spend on your card, which could then be converted into rewards like money off vouchers.
Fuel Broadband bill hikes
Fuel Broadband customers will see the cost of their broadband rise from 1st July.
Package fees will increase by £1 a month on broadband and fibre broadband deals.
At the same time line rental charges will rise by £1.40 per month, taking the cost to £16.40, while daytime calls to UK local and national numbers will increase to 9p per minute from 8.4p per minute. The call set up fee applied to all non-inclusive calls, like mobile phones, will increase from 14.5p to 15.5p per call.
If you’ve renewed your contract since 1st March this year, your line rental and broadband won’t be affected.
Compare broadband deals at broadbandchoices.co.uk
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John Lewis ventures into mobile market
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