December can be a costly month with Christmas expenses, but there are other significant financial developments on the horizon that could impact your finances. Some households are set to receive a Christmas bonus payment, alongside updates on inflation and interest rates.
Various winter assistance programs will extend into December, such as Cold Weather Payments and the Warm Home Discount. The Department for Work and Pensions (DWP) is gearing up to distribute its annual £10 Christmas bonus to eligible households, typically arriving by the first week of December and not affecting other benefits.
Inflation figures from the Office for National Statistics (ONS) are scheduled for release on December 17, with current inflation at 3.6%, having previously peaked at 11.1% in October 2022. The Bank of England will reveal its next interest rate decision on December 18, with the current base rate standing at 4% after several cuts since August 2024.
Due to the Christmas and New Year bank holidays, numerous individuals will receive their benefits earlier than usual. Those expecting payments on Christmas Day or Boxing Day will likely receive them on December 24. Similarly, for benefits due on January 1, payments are anticipated on December 31.
Self-assessment taxpayers seeking HMRC to collect tax owed through their PAYE tax code must submit their online return by December 30 if the tax bill is less than £3,000 and they pay tax through PAYE.
Throughout December, support schemes like Cold Weather Payments, Winter Fuel Payments, and the Warm Home Discount will continue to assist households. Cold Weather Payments worth £25 are triggered when temperatures stay below zero for seven consecutive days. Winter Fuel Payments, offering up to £300, and the Warm Home Discount providing £150 off electricity bills, will also benefit more households.