Here we break down all the money changes taking place throughout the month of June including the Universal Credit rises, new fines for pet owners, and the next base rate decision
A whole host of money changes are coming next month – here is a round up of what you need to keep an eye on.
The changes will affect a range of Brits from pet owners, to benefit claimants and people buying houses. The Bank of England is also announcing its next interest rate decision which could have an impact on your mortgage payments. Really, with a major change to banking notes set for June, technically every single person will be impacted.
Here we break down all the money changes taking place throughout the month of June.
June 1 – Multiple Dwellings Relief (MDR) tax break scrapped
Multiple Dwellings Relief (MDR) has been around since 2011 and lets people who buy multiple residential properties in the same or a linked transaction pay less Stamp Duty Land Tax (SDLT). Where the relief applies, Stamp Duty is calculated against the average property value rather than the combined value of the properties.
The tax relief was abolished by Chancellor Jeremy Hunt in the Spring Budget. The reason for the move was that the relief costs the Treasury around £700million a year but no longer fulfils its original objective of supporting investment in the private rented sector. It was also noted that Multiple Dwelling Relief can overcomplicate Stamp Duty with many cases going to the tax tribunal over the last few years.
June 5 – New King Charles banknotes
Bank notes featuring King Charles III will enter circulation from June 5. The overall design of the notes will remain the same but will now feature a portrait of the King where the portrait of the late Majesty, Queen Elizabeth II was. All four bank notes – £5, £10, £20 and £50 – will feature the new design. Banknotes that feature the late Queen will remain legal tender and will co-circulate alongside King Charles III’s notes. The new banknotes are only being printed to replace those that are worn and to meet any overall increase in demand for banknotes.
June 10 – Cat owners could be fined up to £500
All pet cats in England must be microchipped by 10 June 2024. The new rules mean that cats must be microchipped before they reach the age of 20 weeks. This also includes indoor-only cats. As part of the new rules, you must keep your contact details up to date on a Defra-approved microchipping database. If you miss the June deadline, the new law states you’ll have 21 days to have your cat microchipped, or you may face a fine of up to £500. The new microchipping law is only being introduced in England.
June 20 – Bank of England base interest rate decision
The Bank of England’s Monetary Policy Committee (MPC) will meet to review its base interest rate. Currently, the rate sits at 5.25% and has been at this level since August last year. At its last meeting on May 8, the MPC voted by a majority of 7–2 to maintain the rate at the same level. Two members voted to reduce Bank Rate by 0.25 percentage points, to 5%.
The Bank bases its decision on the level of inflation in the UK and earlier this month it was revealed that this had dropped to 2.3% in the year to April. This is not far off the Bank’s target of 2%. Many believe this should encourage the Bank of England to cut interest rates, however, this drop was not as far as was anticipated. This means the Bank may hold off from cutting rates until inflation drops further. However if it does, the 643,000 people on tracker mortgages will see an immediate cut to their monthly payments,
June 28 – Changes to Debt Relief Orders
From the end of June, the rules for getting a Debt Relief Order (DRO) will change. From June 28, The total amount of debt a DRO can cover is also changing, with the maximum value threshold rising from £30,000 to £50,000. Alongside this, the maximum value of a vehicle that a person can retain with a DRO is also rising from £2,000 to £4,000.
DWP benefit rate rise – June
It was confirmed in the Autumn Statement last year that benefits would be rising by 6.7% this April. This includes benefits such as Universal Credit, Personal Independence Payment (PIP), Carer’s Allowance and Pension Credit. Most claimants saw their paymentas rise in the April pay, however, those claiming Universal Credit are yet to see it. Many will be seeing the rise in May, with some having to wait another month.
This is the way Universal Credit is calculated each month. Universal Credit is calculated based on your circumstances each month and these are called your “assessment periods” – if your circumstances change then the amount of Universal Credit you get that month could also change. Normally you get your Universal Credit payment seven days after each monthly assessment period. Those whose assessment periods started before the April 8 rise will see the benefits rise in May however, those whose assessment period started after won’t see it until June.
June – Universal Credit payment rises
Benefits payments increased by 6.7% from April 8, 2024, for many claimants. But for some Universal Credit claimants, the increased benefit rates will only take effect around June. This is due to the Universal Credit assessment period.
Universal Credit is calculated based on your circumstances each month and these are called your “assessment periods” – if your circumstances change within the assessment period then the amount of Universal Credit you get that month could also change. So if your assessment period started before the April 8 rise, you will have seen the benefits rise in May. However, those whose assessment period started after won’t see it until June.
Charity Turn2us sets out an example: If your assessment period started on March 26. It runs for a complete calendar month to 25 April, with a new assessment period beginning on 26 April. Universal Credit payments are paid a week after the last date of each assessment period, so you will receive your payment on 2 May.
But as this assessment period started before April 8, the new rates will not take effect and you will have to wait until your next assessment period (April 26 to May 25) to get the new rate on June 1.
If your assessment period started after April 8, for example on April 12., it ran for a complete calendar month to May 11, with a new assessment period beginning on May 12. As Universal Credit payments are paid a week after the last date of each assessment period, you received your payment on May 18. As your assessment period started after April 8, the new rate was in effect and you received the increased Universal Credit payment.
June – Housing benefit claimants to receive DWP letter
The Department for Work and Pensions (DWP) are currently working to move everyone claiming older legacy benefits onto Universal Credit. The DWP has been doing this in stages and has been contracting people who claim certain types of benefits. From June 1, all people claiming Housing Benefit only will start to receive letters asking them to claim Universal Credit instead.
Once you get one, you will only have three months to put a claim in for Universal Credit. If you do not take action before this deadline then you risk losing your current benefit entitlement.
