December tends to be a costly month mainly because of the holiday season, but there are also significant financial developments on the horizon that could impact your finances.
Among the upcoming events are the issuance of a Christmas bonus to eligible households, as well as updates on inflation rates and interest rates. Additionally, various winter assistance programs, such as Cold Weather Payments and the Warm Home Discount, will be continuing throughout December.
The Department for Work and Pensions (DWP) will soon distribute its annual tax-free Christmas bonus of £10 to qualified recipients, typically arriving by January 1. To be eligible for the Christmas bonus, individuals must be 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 been reduced five times since August 2024.
Due to the Christmas and New Year bank holidays, many beneficiaries will receive their payments earlier next month. For instance, if a benefit is due on Christmas Day or New Year’s Day, it will likely be paid on the preceding day.
Self-assessment taxpayers looking to have HMRC collect owed taxes through their PAYE tax code must file their online returns by December 30. This option is available for taxpayers with tax bills under £3,000 who already pay taxes through PAYE.
Throughout December, support schemes like Cold Weather Payments and Winter Fuel Payments will continue benefiting eligible households. These programs offer financial assistance during colder months to help with heating and electricity bills.