December is typically a costly month primarily because of Christmas, but there are other significant financial developments on the horizon that could impact your finances.
Among these updates, some households can look forward to receiving a Christmas bonus payment soon. Additionally, there will be updates on inflation and interest rates in the coming days.
Throughout December, various winter assistance programs will remain active, such as Cold Weather Payments and the Warm Home Discount. Comprehensive information on these schemes is available for those interested.
The Department for Work and Pensions (DWP) is set to distribute its annual Christmas bonus of £10 to eligible households, a tax-free payment that does not affect other benefits. Claimants of specific benefits are entitled to this bonus, typically received by early January.
Inflation data from the Office for National Statistics (ONS) is scheduled for release on December 17, providing insights into price changes. The Bank of England will announce its next interest rates decision on December 18, with the current base rate at 4%, having undergone five reductions since August 2024.
Due to the Christmas and New Year bank holidays, benefit payments for thousands of individuals will be processed earlier next month. Beneficiaries expecting payments on Christmas Day or Boxing Day are likely to receive them on the preceding day.
Self-assessment taxpayers opting for HMRC to collect owed taxes via their PAYE tax code must submit their online returns by December 30. This method is applicable if the tax bill is below £3,000 and the individual already pays tax through PAYE, even if they have additional income from a side job.
Various support schemes will persist into December, including Cold Weather Payments, Winter Fuel Payments, and the Warm Home Discount, offering financial relief during the winter season.