Samantha Smith
A series of important financial updates will begin to roll out this August, which could significantly influence your personal or household budget.
From tuition fee increases to changes in benefit payment schedules and a new Bank of England interest rate decision, it’s essential to stay informed. Here’s a breakdown of all the key changes you need to know.
August 1 – Tuition Fees and Maintenance Loans Go Up
Starting August 1, university tuition fees in England will increase for the first time since 2017. The new annual tuition rate will jump from £9,250 to £9,535.
This change will impact both new university students enrolling in September 2025 and those currently pursuing their courses.
Also rising are maintenance loans, which help cover students’ living costs:
- Outside London: Increasing from £10,227 to £10,544 per year.
- In London: Going from £13,348 to £13,762 per year.
August 6 – eBay’s Faster Seller Payments Launch
eBay is rolling out accelerated payments for qualifying sellers from August 6. If a seller has completed 10+ sales totaling £150 or more in the past five days and has no more than two unresolved issues in the last year, they’ll now receive their funds within 24 hours of a sale.
This change cuts down the waiting time from two days post-delivery confirmation to next-day payments, improving cash flow for frequent sellers.
August 7 – Bank of England Sets Interest Rate
The Bank of England will announce its latest base interest rate decision on August 7. The current rate stands at 4.25%, unchanged since the last review in June.
This rate impacts borrowing costs across mortgages, loans, and credit cards, so any changes could directly affect your monthly payments.
August 20 – Latest UK Inflation Figures Released
On August 20, the Office for National Statistics (ONS) will publish updated inflation figures, which measure how prices change over time. The last reported rate was 3.6%, down from a peak of 11.1% in October 2022.
Inflation trends can influence interest rates, wages, pensions, and benefits—so this update is one to watch.
August 21 – Santander 123 Lite Account Shuts Down
Santander is officially closing its 123 Lite current account on August 21. Known for offering 3% cashback on household bills (capped at £15/month) with a £2 monthly fee, this account had already stopped accepting new customers earlier in 2024. Current users will need to switch to another product before this date.
August 25 – Early DWP Benefit Payments Due to Bank Holiday
With the August bank holiday falling on Monday, August 25, DWP benefit recipients may receive payments early.
If you’re due to get Universal Credit, PIP, or Child Benefit on this date, expect the money to arrive on Friday, August 22 instead.
August 31 – Key Child Benefit Renewal Deadline
Families receiving Child Benefit must renew their claim by August 31 if their child is staying in education or training beyond age 16.
Without renewal, the benefit will automatically end on or after the child’s 16th birthday.
Eligible education or training includes:
- A-Levels
- NVQs
- Home education
It does not include university or BTEC courses.
August 31 – Apply for Free Childcare
Parents need to apply by August 31 for 30 hours of free childcare to begin receiving the benefit from September 2025.
Once your application is approved, you’ll get an 11-digit code that must be given to your childcare provider to access funding.
Summary Table of August 2025 Financial Changes
| Date | Change | Details |
|---|---|---|
| August 1 | Tuition fee and maintenance loan increase | Fees rise to £9,535; loans also increase for London and non-London students |
| August 6 | eBay faster payments for sellers | Qualifying sellers get paid within 24 hours of a sale |
| August 7 | Bank of England interest rate decision | Base rate currently at 4.25% |
| August 20 | Inflation update from ONS | Last reported rate: 3.6% |
| August 21 | Closure of Santander 123 Lite account | Ends cashback account with £2 monthly fee |
| August 25 | Early DWP benefit payments due to bank holiday | Payments moved to August 22 |
| August 31 | Deadline to renew Child Benefit for 16+ children | Must reapply for continued payments |
| August 31 | Deadline to apply for 30 hours free childcare | Required for September funding |
August 2025 is packed with key financial changes that could affect students, families, benefit recipients, and even online sellers.
Whether it’s adjusting your budget to reflect higher education costs, renewing benefits, or preparing for inflation updates, being proactive will help you manage your finances more efficiently during this crucial month.
FAQs
Who will be impacted by the tuition fee increase in August 2025?
All students starting or continuing a university course in England from September 2025 will be affected.
When will DWP benefit payments arrive due to the August bank holiday?
If your benefit payment is due on August 25, you’ll likely receive it on August 22 instead.
What should I do if my child is over 16 and still in education?
You need to renew your Child Benefit by August 31 if your child continues in eligible education or training.