December can be a costly month with Christmas expenses, but there are other significant financial developments on the horizon that could impact your finances.
Households can expect a Christmas bonus payment, along with updates on inflation and interest rates. Additionally, 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 distribute its annual tax-free Christmas bonus of £10 to eligible households early in December. This bonus will 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 interest rates on December 18, with the current base rate at 4%, down from its peak of 5.25%.
Due to the Christmas and New Year bank holidays, benefit payments will be issued early next month. For instance, benefits scheduled for Christmas Day or Boxing Day will likely be paid on December 24. Similarly, benefits due on January 1 will be paid on December 31.
Self-assessment taxpayers looking to have HMRC collect tax owed through their PAYE tax code must file their online return by December 30. This option is available for taxpayers with tax bills under £3,000 who already pay tax through PAYE.
Throughout December, support schemes like Cold Weather Payments, Winter Fuel Payments, and the Warm Home Discount will be ongoing, providing financial assistance to eligible households.