In December, expenses tend to rise not only due to Christmas but also because of other significant financial developments that could impact your finances.
Households may receive a Christmas bonus payment, and updates on inflation and interest rates are on the horizon.
Various winter assistance programs will remain active in December, such as Cold Weather Payments and the Warm Home Discount, providing crucial support to those in need.
The Department for Work and Pensions (DWP) will distribute its annual tax-free Christmas bonus of £10 to eligible households starting 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.
The Office for National Statistics (ONS) will release the latest inflation data on December 17, with the current inflation rate at 3.6% and a peak of 11.1% in October 2022.
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, from a peak of 5.25%.
Due to Christmas and New Year bank holidays, benefit payments for thousands will be made earlier in December. Payments scheduled for Christmas Day or Boxing Day will likely be issued on December 24, and those due on January 1 will probably be paid on December 31.
Self-assessment taxpayers aiming to have HMRC collect their tax through their PAYE tax code must submit their online return by December 30, especially if they owe less than £3,000 and already pay tax through PAYE.
Throughout December, support schemes like Cold Weather Payments, Winter Fuel Payments, and the Warm Home Discount will continue to provide assistance to eligible households, offering financial relief during the winter season.