August 2024 Brings Big Financial Shifts – Here’s What’s Changing
As summer heats up, so do several money changes that could impact your wallet. From energy bills to benefits, here’s your essential guide to the financial shifts happening this August.
1. Energy Price Cap Update
Ofgem’s latest price cap adjustment takes effect in August, potentially lowering bills for millions. Experts predict a modest drop, but volatility in wholesale markets means future changes remain uncertain.
2. Benefit Payment Increases
Several state benefits see their annual uprating applied in August, including Universal Credit and disability allowances. The 6.7% increase aims to help recipients cope with ongoing cost-of-living pressures.
3. New Tax Rules for Side Hustles
HMRC’s tightened rules on online selling platforms come into force, requiring digital marketplaces to report seller earnings directly to tax authorities.
4. Student Loan Changes
Recent graduates face altered repayment terms as new thresholds and interest rates take effect. The changes particularly impact those on Plan 2 and Postgraduate loans.
5. Bank of England Rate Decision
While not guaranteed, analysts suggest the Monetary Policy Committee might implement another base rate change in August, affecting mortgage and savings rates.
6. Rail Fare Increases
Annual ticket price adjustments typically announced in August will use July’s RPI figure, potentially adding to commuters’ transport costs.
7. Council Tax Rebates
Some local authorities begin distributing the second installment of annual rebate schemes to eligible households this month.
8. Pension Contribution Changes
Auto-enrollment minimums increase for both employers and employees, while new rules make it easier for multiple part-time workers to qualify.
Pro Tip: Use August to review your budgets and direct debits – these changes might require adjustments to your financial planning.
