December can be a costly month with Christmas expenses, but there are other significant financial developments on the horizon that could impact your finances.
Households may receive a Christmas bonus payment, and updates on inflation and interest rates are also expected soon.
Various winter assistance programs, such as Cold Weather Payments and the Warm Home Discount, will extend into December, providing essential support.
The Department for Work and Pensions (DWP) will distribute its annual tax-free Christmas bonus of £10 to eligible households in the first week of December. This bonus does not affect other benefits and should be received by January 1.
Inflation data from the Office for National Statistics (ONS) will be published on December 17, with the current 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%.
Due to the Christmas and New Year bank holidays, benefit payments will be made earlier next month. If benefits are due on Christmas Day or Boxing Day, they will likely be paid on December 24. Similarly, benefits scheduled for January 1 will be paid on December 31.
Self-assessment taxpayers who wish to have HMRC collect tax owed through their PAYE tax code must file their online returns by December 30. This option is available for taxpayers with a tax bill of less than £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 households with essential financial aid.