In December, beyond the usual holiday expenses associated with Christmas, there are significant financial updates on the horizon that could impact your finances.
Among these updates is the issuance of a Christmas bonus to eligible households by the Department for Work and Pensions (DWP), set at £10 and typically distributed in the first week of December. This bonus is tax-free, does not affect other benefits, and is expected to be received by January 1 for those claiming specific benefits.
Additionally, winter assistance schemes such as Cold Weather Payments and the Warm Home Discount will extend into December, providing financial relief to households facing cold weather challenges.
Further financial news includes the upcoming release of inflation data by the Office for National Statistics on December 17, revealing the current inflation rate at 3.6%. The Bank of England will also announce its latest interest rates on December 18, with the current base rate at 4%, having undergone five cuts since August 2024.
As the festive season approaches, benefit payments are scheduled to be made early in light of the Christmas and New Year bank holidays. For instance, benefits due on Christmas Day or Boxing Day will likely be paid on December 24, and those due on New Year’s Day will be paid on December 31.
Moreover, self-assessment taxpayers aiming to have HMRC collect tax through their PAYE tax code must submit their online returns by December 30, particularly if they owe less than £3,000 in taxes and already pay tax through PAYE.
Throughout December, support schemes like Cold Weather Payments, Winter Fuel Payments, and the Warm Home Discount will persist, offering financial aid to households facing challenges during the winter season.