December can be a costly month with the holiday season approaching, but there are financial events beyond Christmas that may impact your finances.
Some households are set to receive a Christmas bonus payment soon, along with updates on inflation and interest rates. Additionally, ongoing winter assistance programs, such as Cold Weather Payments and the Warm Home Discount, will extend into December.
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 for those claiming specific benefits.
Inflation figures from the Office for National Statistics (ONS) are scheduled for release on December 17, reflecting price changes over time. The Bank of England will announce its next interest rates on December 18, with the current base rate at 4%, having been reduced five times since August 2024.
Due to upcoming Christmas and New Year bank holidays, many benefits will be paid early in December. If benefits are due on Christmas Day or Boxing Day, payments are likely to be made on December 24, and for benefits due on January 1, payments should arrive on December 31.
Self-assessment taxpayers aiming to have HMRC collect owed taxes through their PAYE tax code must file their online return by December 30. This method is applicable for tax bills under £3,000 if already paying tax through PAYE, such as employees with additional income sources.
Throughout December, support schemes will persist, including Cold Weather Payments of £25 for prolonged sub-zero temperatures, Winter Fuel Payments up to £300, and the Warm Home Discount offering £150 off electricity bills.
