December can be a financially demanding month with Christmas expenses, but there are significant financial developments ahead that may impact your finances.
Households can anticipate a Christmas bonus payment, alongside updates on inflation and interest rates. Additionally, ongoing winter assistance programs such as Cold Weather Payments and the Warm Home Discount will continue through December.
The Department for Work and Pensions (DWP) is set to distribute its annual tax-free Christmas bonus of £10 to eligible households by early 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 inflation rate at 3.6%. The Bank of England will announce its next interest rate decision on December 18, with the current base rate at 4%, having undergone five reductions since August 2024.
Due to the Christmas and New Year bank holidays, benefit payments for thousands will be processed earlier next month. Benefits scheduled for Christmas Day or Boxing Day will likely be paid on December 24, while payments due on January 1 will be issued on December 31.
Self-assessment taxpayers seeking HMRC to collect owed taxes through their PAYE tax code must submit their online returns by December 30. Taxpayers can utilize this method if they owe less than £3,000 and already pay tax through PAYE.
Various support schemes will persist in December, including Cold Weather Payments of £25 for prolonged sub-zero temperatures and Winter Fuel Payments of up to £300. Additionally, the Warm Home Discount offers £150 off electricity bills.
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