With 2023 done and dusted, many of us are not only suffering from the January blues, but are also anxiously awaiting a late payday.
This time last year, 92% of UK households said their cost of living had increased from 2022, according to Statista.
But to avoid any additional strain on the wallet, it may be helpful to keep up with some current and upcoming financial changes, both good and bad:
Applications open for free childcare – January 2
From April onwards, parents of two-year-olds will be able to receive 15 free hours of childcare per week.
Working parents will need to earn more than £8,670 individually but less than £100,000 a year to qualify.
The government announced that the 15 hours will also be extended until the age of nine months.
Inflation is a percentage measuring how much prices change over time.
The UK inflation rate is currently 3.90 percent, compared to 4.60 percent last month and 10.70 percent last year.
For context, low, stable and predictable inflation is what seems appropriate.
Deadline for HMRC online self-assessment – 31 January
HMRC said 5.7 million people have less than a month to file their tax returns for 2022-2023.
So, make sure you don’t miss the deadline of 31 January and risk a £100 fine – plus potential further penalties.
HMRC said the quickest and easiest way customers can pay their tax bill is via its app.
Information about the different methods of payment can be found on GOV.UK. People who are unable to pay in full can also access support and advice on the site.
Cost of living payment of £299 – 6 February
The full list of benefits that apply to them is:
- Universal Credit
- Jobseekers’ allowance based on income
- Income-related work and support allowance
- Income support
- Work tax credit
- Child tax credit
- Trust retirement
To receive the payment, you must be eligible for one or more of these benefits between August 18 and September 17.
Bereavement Support Deadline – February 8th
Although Widower Parental Allowance has now been replaced by the Bereavement Support Payment, for a limited time, you may still be able to claim help retrospectively if your household partner died after 8 April 2001 and before 6 April 2017.
This option can be worth thousands, but must be claimed before the deadline.
Rail fares rise – March 3
Rail fares are scheduled to increase by 4.9 percent in March 2024, the rate set by the government.
Minimum wage increase – April 1
This year we will see an increase in the national minimum wage.
For those aged 21 and over, the amount will rise from £10.42 to £11.44, an increase of 9.8 per cent for the country’s lowest earners, known as the £1.02 payment.
For people aged 18 to 20, the fee will rise from £7.49 to £8.60, an increase of £1.11.
For those aged 16 or 17 or in training, the pay rises by £1.12 to £6.40.
Council Tax Increase – 1 April
The amount councils in England can raise council tax without holding a local referendum has been increased, with those with welfare duties able to raise council tax by five per cent, while others can raise it by three per cent.
TV license hike – April 1
The 6.7 percent increase in license fees is said to be in line with inflation.
Tax cuts for the self-employed – April 6
Taxes on the self-employed will rise from 9% to 8%, with the average self-employed person in the UK taking home £350.
State benefits and pensions hike – April 8
Universal Credit is expected to rise by 6.7 per cent, as can an 8.5 per cent increase in state pensions.
Register for self-assessment – October 5
For those registering for Self-Assessment Tax for the first time, the deadline is 5 October.
Warm Home Discount – October
If you want a £150 discount on your electricity bill for the winter period, sign up to the Warm Home Discount Scheme.
Contact the Warm Home Discount Scheme before 29 February 2024 to find out if you are eligible.
Fuel payment for the winter – November
Millions of pensioners are also queuing up for a winter fuel boost, which could be up to £600.
If you were born before September 25, 1957, you will be eligible in most cases.
This will happen automatically if you receive any of the following:
- State pension
- Trust retirement
- Attendance allowance
- Promote personal independence
- Carer’s allowance
- Disability living allowance
- Income support
- Employment and Earning-Related Support Allowance (ESA)
- Income-based Jobseekers Allowance (JSA)
- Awards from the War Pensions Scheme
- Disability benefit
- Disability benefit for industrial injuries
- Industrial death benefit
Any payments received from this scheme will not affect future benefits.
Cold Weather Payments – November
If you receive certain benefits or mortgage interest support, you may be eligible for £25 for each 7-day period of extremely cold weather of 0°C or below.