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Manchester Evening News
Manchester Evening News
Business
Ben Hurst & Melissa Major & Ellie Kemp

The six changes affecting DWP benefits, energy bills and motorists this June and what they mean for you

DWP benefits claimants and motorists are among those affected by key changes being rolled out next month. The moves could impact you financially, so they're well worth being aware of.

Changes include the £150 disability cost of living payment being issued, while childcare rates for those who claim Universal Credit will rise. Councils will also able to impose big fines on issues such as bus lanes or people parking on cycle paths, reports LancsLive.

Elsewhere on the roads, the DVLA could change rules over eyesight, meaning anyone with glasses will need to declare it. If it impacts a crash it could lead to disqualification, reports YorkshireLive.

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It is also the final month before the energy price cap drops, with the average household energy bill to be cut by £426 a year from July. A key deadline also looms for anyone who has a prepayment metre.

They were sent vouchers to cash in at the post office - and they stand to lose out on £400 if they don’t redeem them by the end of June - and it is thought more than two million people are in this situation.

Here is a round-up of the six key changes coming into effect this June - and what they mean for you.

Disability Cost of Living Payment to be paid

Anyone expecting the £150 payment will see the money drop into their bank in June. People may be entitled to it if they’re getting any of the following benefits: Attendance Allowance, Constant Attendance Allowance, Disability Living Allowance for adults, Disability Living Allowance for children, Personal Independence Payment, Adult Disability Payment (in Scotland), Child Disability Payment (in Scotland), Armed Forces Independence Payment, War Pension Mobility Supplement.

You must have received a payment of one of these benefits for 1 April 2023 to get the Disability Cost of Living Payment. Most people will be paid the £150 Disability Cost of Living Payment automatically between 20 June 2023 and 4 July 2023.

DVLA to change eyesight rules

Guidance will soon be updated meaning anyone with an eye condition will need to declare it. Optometry Today says the DVLA will release updated guidance on its list of notifiable eye conditions.

Adam Sampson, chief executive for the AOP, said: “We’ve continued to have an open dialogue with the DVLA on this important issue to work towards a pragmatic solution for our members, patients and the DVLA. “The move is sure to remove an unnecessary administrative burden for practitioners but also alleviate worry for many patients.” The rule the DVLA issued in October was that if vision was a factor in an accident, a £1,000 fine and three points issued to the driver is to be expected, only if the driver had not notified the DVLA of the condition prior to the incident. In more serious cases, it could result in a driving disqualification.”

Councils in England to get new powers over traffic offences

From the end of this month, local authorities across England will have the power to apply to the Secretary of State for new powers to enforce 'moving traffic offences'. This will give them the power to issue fines to drivers for the first time.

Moving traffic offences include incorrectly driving into a bus lane, stopping in a yellow box junction, banned right or left turns, illegal U-turns, going the wrong way in a one-way street, and ignoring a Traffic Regulation Order (TRO).

Universal Credit childcare rates increase

By the end of next month, anyone who qualified for DWP's Universal Credit will see their childcare costs boosted. At the moment 85% of childcare can be claimed back.

Currently, these are up to a maximum of £646.35 for one child, or £1,108.04 for two. These rates are due to increase to £951 for one child and £1,630 for two children from 29 June 2023.

For more information visit the government website here.

Energy Price Cap

After the end of June, everyone will be impacted by the energy price cap. From July 1, the average household is expected to fall by £426 as Ofgem announces the new price cap.

The regulator announced it is cutting its price cap from £3,280 to £2,074 from July 1, marking the first time consumers on default tariffs have seen their prices fall since the global gas crisis took hold more than 18 months ago.

At its peak, the price cap reached £4,279 and, “whilst today’s level is lower than last quarter, it is still above the levels it was before the energy crisis took hold, meaning many households could still struggle to pay bills”, the regulator said. Households have been partly shielded from the most recent rise in prices by the Government’s Energy Price Guarantee (EPG), which limited annual energy costs to £2,500 for the average household – subsidising Ofgem’s price cap.

Interest Rates

The Bank of England’s Monetary Policy Committee (MPC) will set their base rate on June 22. So far, it has been raised 12 times in a bi to tackle inflation. The number of homes being repossessed and homeowners in arrears jumped in the first quarter of this year, according to figures from a trade association.

There was a 50% increase in the number of homeowner mortgaged properties being repossessed in the first quarter of 2023, compared with the previous three months, UK Finance said. The series of rate hikes have taken the base rate from 0.1% to 4.5%.

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