December can be a costly month with Christmas expenses, but there are other significant financial developments ahead that could impact your finances.
Households may receive a Christmas bonus payment, and updates on inflation and interest rates are expected. In addition, various winter assistance programs, such as Cold Weather Payments and the Warm Home Discount, will continue throughout December.
The Department for Work and Pensions (DWP) is set to issue its annual tax-free Christmas bonus of £10 to eligible households in the first week of December. This bonus does not affect other benefits and should be received by January 1 for those claiming specific benefits.
Inflation data from the Office for National Statistics (ONS) is scheduled for release on December 17, with the current rate at 3.6%. The Bank of England will announce its next interest rates decision on December 18, with the current base rate standing at 4%.
Due to the Christmas and New Year bank holidays falling on Thursdays, benefit payments for thousands of individuals will be made a day earlier. Self-assessment taxpayers seeking HMRC to collect tax through their PAYE tax code must submit online returns by December 30 if the amount owed is below £3,000.
Support schemes like Cold Weather Payments, Winter Fuel Payments, and the Warm Home Discount will be ongoing. Cold Weather Payments of £25 are triggered when temperatures remain below zero for seven consecutive days, while Winter Fuel Payments of up to £300 and the Warm Home Discount of £150 off electricity bills will be provided to eligible households.