Overview
- Ofgem raised the energy price cap by about 13% to an average of £1,862 a year, a change that took effect on July 1 and will raise unit rates for gas and electricity for most household payment types.
- Motability scheme reforms also began on July 1 for all new orders, introducing VAT and Insurance Premium Tax on some payments, cutting the annual mileage allowance to 10,000 miles, increasing excess charges to 25p per mile, and tightening tyre and cover rules.
- The Financial Conduct Authority will bring Buy Now Pay Later under formal regulation from July 15, requiring per-transaction affordability checks, banning backdated interest, extending card-like protections for purchases between £100 and £30,000, and giving customers the right to take disputes to the Financial Ombudsman Service.
- Key fiscal and macro dates this month that will further affect household finances include the ONS inflation release on July 22, the Bank of England interest-rate decision on July 30, and the HMRC second self‑assessment payment on account due July 31 with immediate interest and staged automatic penalties for missed payments.
- Taken together, these moves create near-term cashflow pressure for vulnerable groups, borrowers, and the self-employed and could interact with any forthcoming political shifts in leadership to change longer-term policy directions.