A number of important changes will affect people's finances across the UK in the month of August, and these are the ones you need to watch out for.
BirminghamLive reports that new rules, extra payments and benefit warnings are to come as people across Britain are keeping a watchful eye on their budgets as the cost of living increases.
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The problems us Brits face don't seem to be easing up any, however, as more increases to energy bills are due in October and next year. Food prices are also on the rise, as well as petrol and TV/broadband packages.
With all of this in mind, here are all the changes to come to your payments, benefits and rules in August 2022.
1. Delayed cost of living payment
Those on benefits that are eligible have now received their first instalment of the cost of living payment, totaling to £650. The DWP have said that 7.2 million of the £326 payments were made in the first week since the instalments dropped on July 14 2022.
Many others have received their payments on July 31, but some won't get this money until the middle of August. The DWP said: "In a small minority of complex circumstances, claimants may be paid automatically after the end of July – for example, if they were deemed unable to claim certain benefits, but won backdated entitlement on appeal.
"The DWP will seek to contact claimants directly in the very small minority of cases where there are issues or delays."
2. Last chance for tax credits renewal
HMRC has urged over 220,000 tax credits customers to renew their claims or face missing out on the key financial support they could have gotten.
More then 363,000 customers have renewed as of July 31, the cut-off date for tax credits renewals. However, if you have missed the deadline, there are steps you can take to sort the issue.
If you miss the deadline, you'll be sent a statement (TC607). If you contact HMRC within 30 days of the date on the statement your tax credit claim may be restored and you will not have to pay anything back.
If you contact HMRC after 30 days, they will ask you to explain the reasons for the delay before they consider restoring your claim. If your claim is restored, HMRC will tell you how much you'll get within eight weeks of receiving your renewal.
However, if you do not contact HMRC at all after receiving the statement, your tax credits payments will stop and you will have to pay back all the tax credits you've received since April 6, 2022.
If HMRC stops your payments, you cannot make a new claim for tax credits but can instead apply for either Universal Credit (if you‘re under State Pension age or your partner is) or Pension Credit (if you and your partner are over State Pension age).
3. £150 council tax rebate deadline approaching
Millions of Brits have already received their council tax rebate, worth £150, via their local authority. For those who do not receive their rebate via a direct debit set up, local councils are searching for ways to give out the cash, that is intended to help support energy pricing.
Places like Birmingham are giving out vouchers that can be redeemed at post offices, and Walsall Council is asking households to apply online for the money. It has paid out most of the rebates and needs the remaining households to come forward by August 31.
Those who still don't put in a claim in time will not miss out, the council said. After the deadline date, £150 will be added to the household's council tax account instead, and this will happen in September.
4. Tax credit payment changes
Various tax credits such as Working Tax Credit and Child Tax Credit tend to be paid weekly or monthly, and are handled by HM Revenue and Customs. They aren't arranged to be paid on a weekend, but can be moved if there are bank holidays anywhere in the UK.
There are three date changes to watch out for this August:
- Those due a Tax Credit payment on August 1 will receive it on July 29
- Those due a Tax Credit payment on August 2 will receive it on August 1 - this applies in England and Northern Ireland only
- Those due a Tax Credit payment on bank holiday Monday, August 29, will receive it on August 26
5. Pension Credit deadline for cost of living
Those on Pension Credit will also receive the £650 cost of living payment from the Government, on one condition - as long as they were entitled to the benefit between April 26 and May 25.
However, there is now a way to put in a claim for Pension Credit right now and still get access to the cost of living instalment.
Independent advisers at EntitledTo say that because Pension Credit can be backdated for three months, a new application for that benefit until August 18 will mean you end up being eligible for the £326 cost of living sum as well as the second part of £324. So you'll get the full £650 that's on offer.
This means that if you apply for Pension Credit after August 18, you may miss out on the initial £326 but will be in line for the £324 payment later on in the year. This date is confirmed by the fact that Pension Credit payments are split into benefit weeks, and you need to be eligible for the full seven-day period to receive that week's payment.
The DWP said that, on average, people get more than £3,300 in Pension Credit annually. This money tops up retirement income so that a single person could receive at least £9,200 a year, and couples get at least £14,055 a year.
Other benefits of this credit claim can go to a whole list of discounts, including a free TV licence for the over-75s.
6. Universal Credit cuts for holidays
People receiving Universal Credit who have gone away on holiday at the start of the school break may find a negative impact on their benefits.
The DWP can reduce entitlement for those on the benefit if they go on an unauthorised trip overseas, and the entitlement could even be reduced to zero if you haven't been sticking by the rules.
You're expected to continue your job search while on holiday and if an interview date or work start date can't be arranged, you could even be asked to fly home.
The DWP also confirmed that extended absences for bereavements and medical treatment could be approved so that your benefits aren't affected.
7. Energy price cap review
Energy regulator Ofgem is expected to announce its price cap for October on August 26. So, Brits will then know how much bills are expected to go up later this year.
The price cap is a limit on how much suppliers can charge for each unit of gas and electricity you use, and also sets a maximum for the daily standing charge for having your home connected to the power grid.
The price cap for a typical household paying by direct debit is currently £1,971 a year. For someone paying by prepayment meter, the price cap is significantly higher at £2,017 a year.
Energy analysts at BFY say the price cap could hit £3,420 in October, while Cornwall Insight has issued an even higher prediction of £3,500. It's then set to go up again in January.
8. DWP bank holiday benefit changes
Due to there being a bank holiday on Monday, August 29 those who are due a benefit payment on that day will get an instalment a few days earlier, on Friday, August 26.
As said before, payments are not set to be paid on weekends, but some are on specific dates rather than days. When it comes to Universal Credit, for example, it is fixed to the same date every month for each individual claimant, based on when they had their first payment.
So if your date happens to be the weekend days of the 27 or 28 or the bank holiday of the 29, the money will go in on August 26 instead. Child benefit is usually paid every month on a Monday or Tuesday.
Single parents can have it paid weekly, or if one parent is claiming other benefits, the same can be arranged. If this payment is due on Monday, August 29, the payment will arrive three days earlier on August 26 rather than a day later.
The State Pension is also paid monthly, on varying dates dependant on National Insurance numbers. Those with numbers in the range 00 to 19 as the last two digits of their National Insurance number normally get their pension on a Monday, so if that date would normally be August 29, the money will go in on August 26 instead.
The same applies to all other benefits, except for HMRC's tax credits which are treated differently as mentioned earlier in this list. Be sure to check payments have arrived as early as possible on the new dates so you can call benefits officials if there is a problem.
Helplines and jobcentres will be closed over bank holiday weekends so you won't be able to call them then.
9. Universal Credit advanced payment boost
A new campaign is trying to get more people to claim the benefits they are entitled to - and this includes the 1.2 million families who are missing out on Universal Credit payments of £6,200 on average.
For anyone who is newly alerted to the opportunity to apply for Universal Credit, there is normally a five-week wait for the first payment to come through.
If you apply now, you could immediately get an advance payment to tide you over in the meantime. This can be up to the total amount of your first expected Universal Credit payment but will have to be paid back in instalments deducted in future.
Those already in receipt of Universal Credit or other benefits can apply for emergency cash up to £812. Anyone considering a move on to Universal Credit is urged to check with welfare agencies whether they'll end up better off or not in the long run.
DWP Minister David Rutley has pointed out that although those on New Style Employment and Support Allowance, Contributory Employment and Support Allowance, or New Style Jobseeker’s Allowance do not qualify for the £650 cost of living payment, if they now put in a successful claim for one of the benefits that is eligible (such as Universal Credit), it may be in time to get the second instalment of £324 in the autumn.
You can check your chances on benefits calculators here to find out which state support suits you and your living situation best.
10. Nearly £1K off your council tax
With the new campaign to help claim cash from council and the Government underway, some figures have suggested that 2.8million families are failing to take advantage of Council Tax Reduction, with an estimated £2.7 billion not being paid out.
This is an average of £975 per household, however, your bill could be reduced by up to 100 per cent, meaning you don't have to pay any council tax at all.
Applying now would mean that you may well get a huge discount to your council tax bill in August. You can put in a claim if you own your home, rent, are unemployed or working full or part time.
How much money you get depends on:
- where you live - each council runs its own scheme
- your circumstances (for example income, number of children, benefits, residency status)
- your household income - this includes savings, pensions and your partner’s income
- if your children live with you
- if other adults live with you
11. Cash grants from Household Support Fund
The DWP announced that more than 8.9 million grants have already been given to families in the first round of Household Support Fund payments in the six months from October 2021 to March this year.
The fund was extended by a further £500 million earlier this year with more grants set to be paid in the next round of payments up to the end of September 2022.
Check with your city council to see what procedures they have in place for distributing this cash.
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