Paul Lewis: July money news
Our financial expert has the latest on fuel duty rises being postponed, national savings refunds and a review of bank branch closures.
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Our financial expert has the latest on fuel duty rises being postponed, national savings refunds and a review of bank branch closures.
The Chancellor has postponed the rise in the duty charged on petrol and diesel, which was due to be phased in from September. Rachel Reeves had planned to phase out the 5p a litre cut introduced by Rishi Sunak in 2022.
Duty was set to rise by 1p on 1 September and another 2p on 1 December followed by the final 2p on 1 March. The first two have been postponed and we will have to wait until the Budget in the autumn to find out what will happen in 2027. VAT is added to the duty so the postponement will save a rise equivalent to 3.6p a litre this year.
Pump prices have risen by 26p for petrol and 43p for diesel since the US war on Iran began at the end of February.
These 8 small changes behind the wheel could save you hundreds of pounds this year.
If you have responsibility for a teenager aged 16 or more and receive child benefit for them it will stop at the end of August unless you reclaim it. It can be paid as long as they are in full-time education or training.
The tax-free payment is £27.05 a week for the eldest or only child and £17.90 for each other child but people with an income above £60,000 will pay extra tax to take back some or all of it. Claim online at gov.uk or on the HMRC app.
National Savings & Investments has admitted it wrongly kept £367 million belonging to 34,000 deceased customers. The error – which led to its chief executive being replaced in March – goes back as far as 2008. NS&I has now begun tracking down the executors or personal representatives of the late customers, and refunding the money to them to pass on to the heirs. NS&I hopes to finish the process by the middle of 2027.
The government has said that the restored money will be exempt from inheritance tax and income tax. NS&I’s bereavement service for the heirs of departed customers is suffering from long delays as staff are diverted to righting this historic wrong.
The government has launched a review into the effects of bank branch closures on face-to-face banking and has warned banks it may force them to ensure people have the banking service they need.
Led by former Which? director Richard Lloyd, it will go beyond the recent ‘access to cash’ review and look at how the loss of branches frustrates those who need to speak to someone about their accounts and savings, or those of vulnerable relatives.
It will report by October.
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