HOUSEHOLDS will want to circle these five key dates in their diaries when some big money changes are happening next month.
July is a big month for your finances, with the first instalment of the £650 cost of living payment landing in accounts, to the National Insurance threshold rising.
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We explain what’s happening and when, and how it will affect your wallet.
First £650 cost of living payment instalment
More than eight million households will be given the first chunk of their one-off £650 cost of living payment next month.
The first lot of money is worth £326 and will be paid between July 14 and the end of the month.
You’ll get the help if you claim the following means-tested benefits: Universal Credit, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), income support and Pension Credit.
You will need to be on eligible benefits or have begun a successful claim as of May 25 2022 to get the first payment.
There’s no need to apply for the payment – it will land in your account automatically.
But those claiming tax credits will have to wait longer for their payment.
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£1,000 British Gas bill help scheme opens
On July 1, the British Gas Energy Trust opens again – and you don’t have to be a customer to get up to £1,000 help for your bills.
The money is designed to help those struggling with energy bill debts.
You’ll need to hit the eligibility criteria to qualify for the help – like having less than £1,00 in savings.
Because energy bills are soaring, the scheme is likely to have high demand so make sure you apply sooner rather than later.
You’ll be able to apply for the help through the British Gas Energy Trust website.
National Insurance threshold rises
On July 6, the National Insurance threshold will rise.
The amount you can earn before you start paying National Insurance contributions (NICs) will rise to £12,570 from £9,000.
It means you can earn more before the tax is due – and some people will now pay nothing at all.
You can check exactly how much less NICs you’ll pay and how much more you’ll get in your pay packet using the government’s calculator.
Someone on a salary of £20,000 will pay around £291 less each year.
Tax credits renewal deadline
The tax credits renewal deadline is July 31.
Millions of households who claim the benefit have been told they must refresh their claim – or risk seeing their payments stop completely.
There are two types of tax credits – working tax and child tax credit.
Universal Credit has replaced both these for new claimants, but many have not yet made the switch over to the newer benefit.
Around 2.5million claimants getting tax credits were sent renewal packs last year.
The amount you get depends on your circumstances but it can be worth as much as £3,545 for child tax credits or £3,345 for working tax credits.
Each year a claim for tax credits must be renewed, otherwise the benefit could be stopped, and you could even have to pay money back.
Three price rises
Thousands of pay as you go customers with Three will see prices go up from July 12.
Affected customers are those who top up with credit and only pay for the calls and texts they actually use.
The network previously charged phone calls and texts at 10p, but soon calls will rise to 35p per minute and texts will be 15p each.
Data is set double in price and will soon cost 10p per MB.
But there’s a way to avoid the hikes.
Bundle packages, however, which have a set price paid in advance for a certain amount of minutes, texts and data – will not be impacted by the price hikes.
So to avoid paying more or switching to another provider, Three recommended trying one of its bundle packages.
