YOU should be on the lookout for 11 money changes coming next month – especially now Christmas is around the corner.
Millions of households will be in line for extra cash in December, while others will see their payments brought forward.
Plus, there will be deadline dates you need to keep in your diary, sales to look out for and an interest rate decision.
Here’s everything you need to know…
Christmas bonus
Households on certain benefits will be getting an extra payment to their bank accounts in the first week of December.
The Christmas bonus is paid out every year to people on benefits like Universal Credit, Carer’s Allowance, Pension Credit, PIP and Disability Living Allowance.
The payment is only £10 but every penny counts during the festive season.
To get the money, you usually need to be claiming benefits before the first full week of December.
Winter Fuel Payment
Some households will get a cash boost of up to £300 thanks to the Winter Fuel Payment.
The payment is handed out to struggling pensioners to help them with their energy bills over the winter.
If you get the state pension and your annual taxable income is under £35,000 then you should qualify for the free cash.
Your income can include wages, private pensions and some state benefits.
Most eligible pensioners should have got a letter in October or November and the money should arrive from mid November.
That means some people will have already received their payments but others could get them in December.
Interest rate decision
The Bank of England will be making its next decision on interest rates on December 18.
It’s good news for homeowners as it looks almost guaranteed there will be a cut from 4% to 3.75%.
The Bank sets its base rate roughly every six weeks, which in turn impacts interest rates on savings and mortgages.
When the base rate is lower, cheaper mortgage deals are usually available.
But at the same time, interest rates on your savings will go down too.
Inflation data
The latest inflation data will be revealed by the Office for National Statistics (ONS) on December 17.
Inflation is a measure of how much the prices of goods and services have changed over time.
It’s currently sitting at 3.6% after falling by less than expected to the 12 months to October.
At its highest, it was 11.1% in October 2022.
Cyber Monday
You may have missed out on Black Friday by now – but there’s still Cyber Monday.
Many online stores reduce their prices further on this day, which falls on December 1 this year.
Boxing Day sales
You could also snap up a bargain in the Boxing Day sales – and perhaps even snap up a Christmas present for next year.
Some stores launch up to 75% deals so it’s worth having a look.
Some of the big brands that have run Boxing Day sales in the past include Boots, Dunelm, Next, Superdrug, B&M and The Perfume Shop.
Early benefit payments
Benefit payments are usually impacted by the Bank Holidays – meaning households could be paid early over Christmas.
Both Christmas Day on December 25 and Boxing Day on December 26 are Bank Holidays.
If you’re due a benefits payment on either of these days, it’s likely you’ll be paid on Christmas Eve instead.
The DWP hasn’t yet officially confirmed its timetable for Christmas benefit payments, but it has done this in previous years.
Cold Weather Payments
Thousands of struggling households could get £25 towards the cost of their energy bills next month.
Cold Weather Payments are handed out to low-income households when the weather dips below zero.
You’re usually eligible if you receive certain benefits such as Pension Credit, Income Support, income-based Jobseeker’s Allowance, Universal Credit, and income-related Employment and Support Allowance.
You’ll receive the payment if the temperature falls below freezing for seven days in a row in your postcode.
The cash will be deposited directly into your bank account within 14 days.
Warm Home Discount
The Warm Home Discount is a one-off £150 discount on your electricity bill made between October and March.
That means some people will have already received their payment, but some will be made in December.
The money is not actually paid to you, but is an automatic discount applied to your bills.
You will have to apply if you live in Scotland.
In England, you qualify for the £150 discount if you receive the Guarantee Credit element of Pension Credit, are on a low income or receive the following benefits:
- Housing Benefit
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
- The Savings Credit part of Pension Credit
- Universal Credit.
Self-assessment deadline
Some self-employed workers and those with extra income will need to fill out a self-assessment form by the end of December.
This form is used by HMRC to collect income tax.
Typically, income tax is deducted automatically from people’s wages, pensions and savings.
However, people and businesses with extra income must report it in a tax return.
Most self-employed workers will have until January 31, 2026 to file their return for the current tax year.
But if you want HMRC to collect the tax owed through your PAYE tax code then you must file by December 30.
Festive food wars
Supermarkets tend to begin their festive food wars in December.
From December 19, Lidl will cut the cost of Xmas veg to just 8p per pack including a 2kg bag of white potatoes, 1kg carrots and 500g sprouts.
Last year Asda and Aldi did the same.
Frozen turkeys go on offer at this point too.
