Between holidays, days out, family meals, catch-ups with friends, and, although the weather has hardly been playing ball so far, even the odd barbeque, the costs of enjoying the great British summertime can end up mounting up.
With a cost of living crisis still very much with us, inflation can also make everyday purchases much more expensive.
As such, it’s essential to ensure you are up-to-date on any upcoming financial changes that might affect your situation.
Here are six money changes that are set to take place in August 2023.
Money changes coming in August 2023
Several significant updates are coming next month, including interest rate announcements, tax changes, and energy cap updates.
Interest rate announcement
Later this week, the Bank of England will make its next announcement on interest rates – namely, the Bank of England Base Rate, which many experts predict will rise between 0.25 and 0.5%.
The Bank of England’s base rate is the rate charged to other banks and lenders, which ultimately affects the interest rates.
This ultimately means the base rate influences the interest rates you are charged as a customer by banks on financial services like loans, as well as the interest you receive on any savings.
Recent rises in interest rates have seen mortgage repayments hit the highest levels seen for 15 years.
Date: August 3
New inflation data
The Office for National Statistics is the government department tasked with collecting data on inflation.
It does this by collecting a ‘basket’ of goods and services and comparing them to what they would have cost 12 months ago.
This is called the Consumer Price Index (CPI), and when it is high, you’ll generally be paying more for your purchases.
In the ONS’ last announcement, inflation fell by slightly more than expected but is still running at 7.9%.
Date: August 16
Bank holiday benefit payment date changes
Benefit payment dates are sometimes altered if they are due to fall on a bank holiday.
When this occurs, the payment date is usually brought forward – as is the case in August.
With a bank holiday happening on August 28, the payment date for several benefits is being brought forward to the 25.
Child benefit is the main one listed on the gov.uk website. However, it is always best to check if your specific benefits are affected via the website.
Date: Change from August 28 to 25.
Ofgem price cap change
Ofgem (the energy regulator) will update its price cap towards the end of August.
The current Ofgem price cap stands at £2,074 after it fell at the last announcement from £3,280.
This brought it under the level of the £2,500 energy price guarantee, and consumers will pay whatever is lower.
It’s important to remember that the cap is based on typical-use levels annually and is not a cap on what your overall bill is but what companies can charge consumers for each kilowatt hour (kWh).
Date: August 25
Universal Credit migration
A major change is taking place to Universal Credit as certain areas move older ‘legacy’ benefits onto Universal Credit.
These benefits include Working Tax Credit, Child Tax Credit, Income-based Jobseeker’s Allowance (JSA), Income Support, Income-related Employment and Support Allowance (ESA), and Housing Benefit.
The regions affected are:
- West Scotland
- West Yorkshire
- Staffordshire
- Derbyshire
- South London.
The DWP will contact anyone affected in August and give them three months to make the change.
Date: August (no specific date)
PIP changes
The Department for Work and Pensions has announced it will be undertaking a ‘light touch’ review for people on Personal Independence Payments.
Individuals who have been granted shorter-term PIP awards are typically required to complete a 16-page form.
However, those with ten-year awards will now only need to fill out a shorter six-page form, eliminating the need for a healthcare professional assessment in most cases.
Most people above state pension age can also move to the ‘light touch’ forms.
Date: August (no set date)
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