With temperatures rising and a bank holiday on the way, August will see changes in the UK that can affect bills and interest rates.
While parliament is slowing down, this month will set us up for the rest of 2024. With new base rate decisions being made, and energy price caps reviewed, here is everything you need to know.
Base Rate Decision is made
The Bank of England describes base rates as the “single most important interest rate in the UK”. This rate dictates the interest rates for mortgages, loans and savings accounts.
The base rate is determined by the Bank of England’s Monetary Policy Committee (MPC) and influences how banks charge people on how much they can charge to borrow or pay for savings.
On 1 August, the MPC will met to determine the latest base rate for the UK. Since August 2023, the base rates have remained unchanged at 5.25%.
The Bank of England has cut the base rate from 5.25% to 5%.
Energy price cap review
Ofgem, the energy regulator for the UK, review energy price caps every three months. This is to determine the maximum price energy companies can charge for energy units as standard.
Currently, there is a UK gas and energy cap which will run from 1 July to 30 September, charging 5.48p per kilowatt hour (kWh) and 22.36p kWh respectively.
Energy price caps are reviewed every three months, with the next taking place this month. The new price cap will be confirmed on the 27 August 2024.
This next cap will be integral following Chancellor Rachel Reeves’ decision to scrap winter fuel payments, affecting pensioners who don’t receive benefits.
Parliament in recess
The UK parliament will be in recess during the month of August. Despite having a general election at the beginning of July, any parliament activities will be postponed from 31 July until 2 September.
Once parliament resumes in September, there should be further progression on bills such as the Renters’ Rights Bill. We can also expect the first Labour Budget announcement at the end of October.
The Revive Property team.