Five Money Changes Coming in January That Could Affect Your Pocket


Energy Bill Rise

Millions of households will see their energy bills increase this month due to Ofgem's new price cap. The average household on a dual-fuel tariff and paying by direct debit will now pay £94 more a year. The price of electricity has also risen, as well as the unit rate for gas. However, the exact amount you pay may vary based on your supplier and payment method.

Tax Return Deadline

Self-assessment customers have until January 31 to file their online tax return for the 2022/23 tax year. Filing late can result in a £100 penalty, with additional fines of £10 per day up to a maximum of £900. The government's website has a calculator to determine the amount of fines for late filing.

Winter Fuel Payment (Automatic Payments)

The winter fuel payment, worth up to £600, is made to eligible elderly households. Most payments are made automatically, but if you haven't received it by January 26, you should contact the Winter Fuel Payment Centre. The deadline to claim the winter fuel payment is March 31.

Changes to Free Childcare

Parents can now apply for extra free childcare hours. From April, working parents of two-year-olds are eligible for 15 free hours a week. There are specific income criteria and more details can be found on the Childcare Choices website.

Tax Cuts for Millions

Class 1 NICs will be reduced from 12% to 10% starting January 6, benefiting approximately 27 million workers. This change can result in savings of over £450 a year for someone earning an average salary of £35,000. Self-employed workers will also see a boost in income, with some NIC rates being cut.

These five money changes in January could impact your budget. It's important to stay informed and take necessary action to ensure your finances are in order.

Did you miss our previous article…