December can be a costly month with Christmas expenses, but there are other significant financial events on the horizon that may impact your finances.
Households can expect a Christmas bonus payment soon, alongside updates on inflation and interest rates. Additionally, ongoing winter assistance programs, such as Cold Weather Payments and the Warm Home Discount, will extend into December.
The Department for Work and Pensions (DWP) will distribute its annual tax-free Christmas bonus of £10 to eligible households in the first week of December. This bonus, which does not affect other benefits, should be received no later than January 1 for those claiming specific benefits.
Inflation data from the Office for National Statistics (ONS) will be released on December 17, revealing a current rate of 3.6% with a previous peak of 11.1% in October 2022. The Bank of England will announce its next interest rates on December 18, with the current base rate at 4%, having been reduced five times since August 2024.
Due to the Christmas and New Year bank holidays, many individuals will receive their benefits early in December. If your benefit falls on Christmas Day or Boxing Day, it is likely to be paid on December 24. Similarly, those expecting benefits on January 1 should anticipate payment on December 31.
Self-assessment taxpayers wishing to have HMRC collect owed taxes through their PAYE tax code must submit their online returns by December 30, especially if the tax bill is less than £3,000 and already pay tax through PAYE.
Throughout December, support schemes like Cold Weather Payments, Winter Fuel Payments, and the Warm Home Discount will continue to assist eligible households. Cold Weather Payments of £25 will be issued when temperatures drop below zero for seven consecutive days, while Winter Fuel Payments can reach up to £300 and the Warm Home Discount can provide £150 off electricity bills.