December can be a costly month with Christmas approaching, but there are other significant financial developments on the horizon that may impact your finances.
Some households will receive a Christmas bonus payment, and updates on inflation and interest rates are expected soon.
Various winter assistance programs, such as Cold Weather Payments and the Warm Home Discount, will extend into December.
The Department for Work and Pensions (DWP) is set to distribute its annual tax-free Christmas bonus of £10 to eligible households by the first week of December.
Inflation data from the Office for National Statistics (ONS) will be unveiled on December 17, highlighting price fluctuations. The current inflation rate stands at 3.6%, having reached a peak of 11.1% in October 2022.
On December 18, the Bank of England will announce its next interest rate decision. The current base rate is 4%, having been reduced five times since August 2024 from a high of 5.25%.
Due to the Christmas and New Year bank holidays falling on Thursdays and Fridays, benefit payments will be processed early in December. Payments scheduled for these holidays will likely be made a day earlier.
Self-assessment taxpayers aiming to have HMRC collect owed taxes through their PAYE tax code must submit their online returns by December 30 if the tax due is under £3,000.
Throughout December, support schemes like Cold Weather Payments, Winter Fuel Payments, and Warm Home Discounts will continue to assist households with financial aid.