December can be a costly month, not just because of Christmas but also due to other significant financial events on the horizon that may impact your finances. Apart from holiday expenses, households can anticipate a Christmas bonus payment and updates on inflation and interest rates.
Various winter assistance programs will extend into December, including Cold Weather Payments and the Warm Home Discount. The Department for Work and Pensions (DWP) is set to distribute the annual tax-free Christmas bonus of £10 to eligible households, typically arriving by January 1 each year.
Inflation data from the Office for National Statistics will be disclosed on December 17, with the current rate at 3.6%. The Bank of England is scheduled to announce its next interest rates decision on December 18, with the current base rate at 4%, having undergone five reductions since August 2024.
Benefit payments for many individuals will be expedited in early December due to the Christmas and New Year bank holidays. Additionally, self-assessment taxpayers looking to have HMRC collect owed taxes through their PAYE tax code must file their online returns by December 30.
Support schemes like Cold Weather Payments, Winter Fuel Payments, and the Warm Home Discount will continue throughout December, providing financial assistance to eligible recipients.
