December can be a costly month due to Christmas festivities, but there are significant financial developments on the horizon that could impact your finances.
In the upcoming weeks, some households can expect to receive a Christmas bonus payout, while updates on inflation and interest rates are also anticipated.
Additionally, various winter assistance programs, such as Cold Weather Payments and the Warm Home Discount, will extend into December, providing crucial support to eligible individuals.
The Department for Work and Pensions (DWP) is gearing up to distribute its annual Christmas bonus of £10 to qualifying households. This tax-free bonus will not affect existing benefit claims and is typically disbursed by January 1 to eligible recipients of specific benefits.
On a different note, the Office for National Statistics (ONS) is scheduled to unveil the latest inflation figures on December 17. Inflation, which currently stands at 3.6%, serves as a metric for tracking price fluctuations over time.
Meanwhile, the Bank of England is set to announce its next interest rate decision on December 18. The current base rate sits at 4%, having undergone five reductions since August 2024 from its peak of 5.25%. This rate influences the borrowing costs for consumers as set by the Bank of England for financial institutions.
Due to the upcoming Christmas and New Year bank holidays, thousands of beneficiaries can expect early payment next month. For instance, if benefits are due on Christmas Day or Boxing Day, payments are likely to be processed on December 24 instead.
Self-assessment taxpayers who wish to offset their tax liabilities through their PAYE tax code must submit their online returns by December 30. This option is available for taxpayers owing less than £3,000 and already paying taxes through PAYE.
Throughout December, support schemes like Cold Weather Payments, Winter Fuel Payments, and the Warm Home Discount will provide financial assistance to eligible households, offering relief during the winter months.
