December is known for being a costly month primarily because of Christmas, but there are other significant financial events on the horizon that could impact your finances.
Among these upcoming events are a Christmas bonus payment for select households, updates on inflation and interest rates, as well as the continuation of various winter assistance programs throughout December, such as Cold Weather Payments and the Warm Home Discount.
The Department for Work and Pensions (DWP) is set to distribute its annual Christmas bonus of £10 to eligible households in the first week of December. This tax-free bonus does not affect other benefits and is expected to be received by January 1 at the latest, subject to claiming certain benefits.
In other financial news, the Office for National Statistics (ONS) will release the latest inflation data on December 17, with the current inflation rate at 3.6%, having peaked at 11.1% in October 2022. Additionally, the Bank of England will announce its next interest rate decision on December 18, with the current base rate at 4% after five cuts since August 2024.
Due to the Christmas and New Year bank holidays, thousands of individuals will receive their benefits earlier in December. For instance, if a benefit is due on Christmas Day or Boxing Day, it will likely be paid on December 24 instead. Similarly, those expecting benefits on January 1 may receive them on December 31.
Self-assessment taxpayers looking to have HMRC collect owed taxes through their PAYE tax code must submit their online return by December 30. This option is available for taxpayers with tax bills under £3,000 who already pay tax through PAYE.
Throughout December, support schemes like Cold Weather Payments, Winter Fuel Payments, and the Warm Home Discount will continue to assist eligible households with financial aid during the winter season.