10 big money changes and key dates in August – including new energy price cap and deadline for for free childcare hours
THERE are lots of important money dates for your calendar this August, including the deadline for applying for free childcare hours.
There are also key announcements such as the Bank of England base rate and the Ofgem energy price cap, which could significantly impact your finances over the next year.
Here we explain the key dates that need to go in your diary, as well as what you need to do to make the most of each of the changes.
August 1 – Base Rate Decision
The Bank of England’s Monetary Policy Committee (MPC) sets the base rate, which is the figure that many financial institutions, such as mortgage companies and savings accounts, use to decide whether their interest rates will rise or fall.
Products that track the base rate will automatically change when it does, which means that what the MPC does can have significant impacts for people with tracker mortgages or variable interest rates.
The MPC meets eight times each year, and the next meeting will be on August 1.
The interest rate decision is normally announced the following day.
At the last meeting, the Bank held rates at 5.25% for the seventh time in a row. And, despite inflation falling, there are still some reasons the MPC might be cautious and hold again.
It says: “Inflation has fallen a lot already and that is very good news. The signs we’re seeing are encouraging. But we need to be sure inflation will stay low before we can cut interest rates.”
Consumers should keep a close eye on what base rate decision is announced. If the base rate falls, savings products are likely to also quickly cut interest rates, and so it is worth shopping around to make sure you’re getting the best deal.
It’s unlikely that rates will rise, but if they do, mortgage rates will likely follow, and anyone who is not in a fixed-rate product should check that they’re not paying more than they need to.
Even if rates stay the same, it’s often a good time to do a quick financial health check and make sure you’re paying the lowest rate of interest on any debts, and getting the most interest possible on your savings.
August 10 – First Direct scraps text banking service
First Direct has announced that it is axing its text message banking service, which allows customers to get notifications about their current account balances.
You’ll also no longer be able to request mini-statements which include your balance and the last five transactions over SMS.
The bank has been providing text message services for 25 years. It says that customers should use the First Direct app, or online or telephone services instead.
If text message services are important to you, there are a few other banks that offer them, including Nationwide and Bank of Scotland.
Lloyds offers limited mobile updates, for instance when you go into your overdraft.
August 22 – Jaguar, Landrover dieselgate claims deadline
People who bought diesel cars made between 2009-2020 could be in line for hefty compensation worth thousands of pounds.
The issue was first uncovered when Audi and Volkswagen were accused of using illegal devices in their diesel cars to cheat emissions tests.
Since then, lawyers have started cases against several other manufacturers, including Jaguar Land Rover.
The law firms’ cases essentially say that the cars are more harmful than advertised and were mis-sold to consumers.
There are three reasons why you might be due some money back.
To join a claim, you need to contact the law firms that are bringing the case against Jaguar Landrover.
Leigh Day was pursuing a case but the deadline for joining the claim has now passed.
Pogust Goodhead says that the final deadline from the court is August 22, but that potential claimants should get in touch at least a calendar month before that if possible.
Johnson Law has a helpful checker on its website, which tells you if you are eligible to join its claim. All you need to do is enter your vehicle registration number.
Jaguar Landrover has previously denied the allegations, telling MoneySavingExpert: it “does not use emissions cheat devices or software in any of its products. We have not yet seen any technical evidence in relation to this matter and will strongly contest any claims made.”
August 14 – July inflation announcement
Every month, the Office for National Statistics (ONS) releases UK inflation figures based on the Consumer Price Index.
The next announcement, which will detail July’s inflation figures, comes on August 14.
There are a few reasons that consumers should care about these numbers.
The first is that inflation does will impact what happens to the base rate at the September MPC meeting.
The second is that July’s inflation rate is typically used to decide how much rail prices will go up by next year.
For regular train users, and commuters especially, this number could determine what kind of hikes lay ahead.
August 23-26 – Benefit payment dates
There’s one bank holiday in August, which falls on Monday, August 26.
DWP has confirmed that if your benefits payments normally fall on this date, you will get them early this month, on Friday, August 23.
It’s worth remembering that might mean you have to stretch your money a little further, as it will be slightly longer before your next payment is due.
August 27 – Energy price cap announcement
The energy watchdog, Ofgem, will announce the next energy price cap on August 27. This sets the maximum price that energy companies can charge per KwH of energy used as well as the maximum standing charge that customers will have to pay.
The new cap will apply from October 1 to December 31. Customers on standard variable tariffs will have their bills adjusted automatically, but should shop around to see if they can get a better price by fixing.
Anyone who is already in a fix that is coming to an end, should make sure they are using the cheapest provider or whether they can find a better deal elsewhere.
August 29 – Metro Bank starts charging for using debit cards abroad
Metro Bank is set to introduce a 2.99% fee on all debit card transactions made outside the UK from August 29.
This includes transactions made in Europe, which is currently free for customers, The Sun has revealed.
As well as the fee, every time you make take cash out at a cashpoint abroad, you’ll also need to pay a £1.50 ATM fee.
There are plenty of banks and cards that allow you spend fee-free both in Europe and further afield, so if you’re planning to travel it’s probably worth looking at using a different bank for your holiday spending.
Here’s the full list of banks and building societies that don’t charge you to use debit cards abroad.
August 30 – Barclays switcher deal ends
Barclays is currently offering £175 to new customers that switch their current accounts.
But the deal comes to an end on August 30, so if you want to take advantage, you’ll need to move quickly.
This offer is only open to new customers who open a Barclays Bank Account or Premier Current Account.
To qualify, you need to use the Current Account Switch Service to move your current account from another participating bank or building society, including at least two active Direct Debits
You also need to pay at least £800 into your new account by 30 August 2024
August 31 – Child benefit stops
If your child turned 16 this year and leaves approved education or training, you’ll stop getting child benefit payments on August 31.
If they’re planning to stay in approved education or training, you can keep getting the payments, but you need to let HMRC know by filling in the CH297 form.
Approved education includes:
- A levels or similar, for example Pre-U, International Baccalaureate
- T levels
- Scottish Highers
- NVQs and most vocational qualifications up to level 3 – excluding intermediate and advanced apprenticeships
- home education – if it started either before your child turned 16 or after 16 if they have special educational needs and disabilities
- traineeships in England
Approved training should be unpaid. There’s a list of examples on the gov.uk website.
If your child is older and has been in approved education, but is leaving this year, your money will also stop.
For instance, if your child is finishing A Levels, you’ll stop getting payments on August 31.
If the training or education ends at another time, payments will stop at the end of February, 31 May, 31 August or 30 November (whichever comes first).
August 31 – Last day to claim for free childcare hours for 9 months up
If your child is eligible for the 15 hours free childcare from 9 months, which kicks in from September, you need to get your application in before August 31 in order to have the funding ready for September.
To get the free hours, you need to download a code and share it with your childcare provider in time.
HMRC has strongly advised that parents do not leave this to the last minute, and says that they should apply before the start of the summer holidays, or they might miss out on the first term of money off.
Read our guide that explains what you need to do and when to access the free childcare.
What help is available to parents for childcare costs?
CHILDCARE can be a costly business. Here is how you can get help
- 30 hours of free childcare – Parents of three and four-year-olds can apply for 30 hours of free childcare a week.
To qualify you must work at least 16 hours a week at the national living or minimum wage and earn less than £100,000 a year. - Tax credits – For children under 20, some families can get help with childcare costs.
- Tax-free childcare – Available to working families and the self-employed, for every £8 you put in the government will add an extra £2.