It's all change on the money front in 2023, with a string of financial changes kicking in from today, January 1.
How much you pay out in energy bills, mortgage costs and council tax and how much you get in from pensions, benefits and the National Minimum Wage will all change this year, with the busiest month being April, when the new year year starts.
Here we look at the changes month-by-month, and what they mean to you.
Read more: The new UK laws, rules and other changes coming into force in 2023
January
January 1: Energy price cap rise
The energy price cap increased to £4,279 for average use from today - but the Government's energy price guarantee (EPG) will keep the average bill at around £2500 a year until April 1. Customers with standard tariffs who paying for their bills by cheque or cash when they receive them will also see a small increase, as will those on prepayment meters. Customers who pay by monthly direct debit should not see a change, and in the North East, will actually pay slightly less than they have been.
The change will be different depending on who you're with, how you pay and where you live, as the supplier decides the difference, so your bill could either rise or fall, but either way, the difference is likely to be minimal for most families. Households on dual-pricing tariffs, such as Economy 7, are likely to be the worst hit, and could pay nearly £150 more over the course of a year. You can find out more about the changes here.
January 31: Tax return deadline
If you're self-employed or a high earner, you've only got a month left to submit your online tax return for the 2021 to 2022 tax year. The deadline for filing paper-form tax returns ended on October 31, 2022, so online is now the only way to file on time. If you miss the deadline, it can be an expensive business. Self-assessment customers face a penalty of £100 if their tax return is up to three months late, and further fines of £10 a day are applied after three months, up to a maximum of £900. For payments late by six months, you'll be fined 5% of the tax you owe or £300, whichever is greater. Find out more here.
January 31: First payment on account deadline
Payments on account are advanced payments towards your tax bill if you are self-employed. These payments are normally made twice a year, to help spread the cost of your tax bill. The deadlines are January 31 and July 31.
February
February 2: Potential interest rate rises
The Bank of England's Monetary Policy Committee (MPC) meets twice every quarter to decide if interest rates need to rise, and the first one of 2023 is on February 2. A rise is good news if you have shares and investments but not so good if you have a loan, credit card or mortgage.
February 27: Energy price cap announcemnt
Ofgem will announce the price cap to take effect from April 1, 2023.
March
March 5: Rail fares rise
Millions of commuters will pay 5.9% more for train tickets in March. However, it could be worse, as fares fares usually rise each year based on the annual increase in the retail price index (RPI) measured the previous July. The Government recently confirmed that rail fares won't rise by July's RPI value of 12.3% in March 2023, but the rise announced of 5.9% is still the biggest hike in more than a decade.
March 23: Potential interest rate rises
The Bank of England's Monetary Policy Committee (MPC) second meeting of 2023.
March 31: Help to Buy deadline
Help to Buy equity loans can only be given once the purchase of your home is completed by March 31. Help to Buy is designed to help people who want to get ion the property ladder with a 5% deposit. The Government lends you up to 20% of the property price and after five years you'll have to start paying interest on the loan.
March 31: End of monthly energy discounts
Most households across the UK are currently getting a £400 rebate on their energy bills, split over six months but this will come to an end on the last day of March, with no plans to extend.
April
April 1: Energy Price Guarantee rises
The EPG will increase from £2,500 a year for the typical household to £3,000. The Government-backed bills subsidy limits the unit rates and standing charges, so if you use more energy, you could pay more. Use less, and your bill will be less. The EPG is set to remain in place until April 2024.
April 1: National Minimum and Living Wage rises
This year will sees a 10% hike in the National Living Wage (NLW), from £9.50 to £10.42 an hour, meaning more than 2.5million Brits will be paid more. The NLW is the minimum amount all employers have to pay staff aged 23 and over. Those younger than 23 can be paid the National Minimum Wage (NMW) instead, at the new rate of £10.18 for 21-22 year-olds and £7.49 for those aged 18-20.
April 1: Council Tax rises
The Government has already confirmed that it will allow local authorities to increase Council Tax above the cap of 2.99% without a referendum, but most councils still have to announce how much the actual rise will be. Confirmation of rises is usually shared at the beginning of the new financial year in April, and this rate will be payable from April 1.
April 1: Changes to prescription charges?
While nothing has been announced yet, any changes to prescription charges are likely to be announced at the beginning of April. For the first time in 12 years, NHS prescription charges in England were frozen throughout 2022/23 but it has not been confirmed if that will continue. An NHS prescription currently costs £9.35 or £30.25 for a three-month prescription prepayment certificate (PPC).
April 1: Wates charges increase
Any hikes to water bills will be announced in the new year, but will be payable from April 1. Last year, Northumbrian Water hiked their bills by 10%, but people living in the North East still pay one of the lowest rates for water even after the increase.
April 1: Increases to Council Tax and Housing Benefit Support
New rates and allowances for Housing Benefit where rent is paid monthly and Council Tax Support are timed to coincide with the new Council Tax year and the week in which many rents change.
April 4: Increases to Housing Benefit Support
This is the date that the increase in Housing Benefit when rent is paid on a weekly basis (or multiple of a week) comes into effect.
April 5: End of tax year
The end of the current tax year always falls on April 5, so this is your last chance to make the most of your tax-free ISA allowances for the year.
April 6: Changes to tax
The new tax year means that higher earners will be dragged into paying more tax following the 45% additional rate of income tax threshold that is being cut from £150,000 to £125,140. However the personal allowance will remain at £12,570, as will the 20% tax threshold from £12,571 to £50,270.
April 10: Universal Credit and benefit payments to rise
New rates and allowances for means-tested benefits (Universal Credit, Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance and Pension Credit) are increased on the first Monday after April 6, which this year falls on April 10. Rates also increase for the majority of other social security benefits on this date.
Millions of households will get a benefit payment boost this year as monthly payments are set to rise in line with September's inflation rate of 10.1% in April.
April 10: State pension rise
Jeremy Hunt confirmed in his Autumn Statement that the triple lock would stay - and pensions would rise in line with inflation. The move means millions of pensioners will get an £870 rise in their state pension payments, bringing the pension to £10,600 a year.
Mobile, broadband and TV price hikes
Many telecom companies raise their prices every April in line with the Consumer Price Index (CPI) of inflation plus an additional 3.7% or 3.9%, and rules allow these providers to hike their prices midway through customers' contracts. According to Which?, some broadband customers could face bill hikes which see an extra £87 to £113 added to annual bills when compared against the amount they initially signed up for.
May
May 11: Potential interest rate rise
The Bank of England's Monetary Policy Committee (MPC) third meeting of 2023.
End of May: Energy price cap announcement
Ofgem will announce the price cap to take effect from July 1, 2023.
June
June 22: Potential interest rate rise
Another meeting of the The Bank of England's Monetary Policy Committee (MPC) to set the Bank of England's base rate.
July
July 1: Energy price cap rise
New Ofgem energy price cap comes into effect, but the Energy Price Guarantee will keep bills at around £3,000 a year for the typical household to £3,000.
July 31: Deadline to use up stamps without barcodes
Royal Mail has started to phase in newer barcoded stamps, which will replace old-style stamps. From July 31, only the new style stamps complete with barcodes will be valid, and you'll face a surcharge if you try to use anything otherwise.
July 31: Second payment on account deadline
Payments on account are advanced payments towards your tax bill if you are self-employed. These payments are normally made twice a year, to help spread the cost of your tax bill. The deadlines are January 31 and July 31.
August
August 3: Potential interest rate rise
The Bank of England's Monetary Policy Committee's (MPC) fifth meeting of 2023.
End of August: Energy price cap announcement
Ofgem will announce the price cap to take effect from October 1, 2023.
September
September 21: Potential interest rate rise
The sixth 2023 meeting of the Bank of England's Monetary Policy Committee
October
October 1: Energy price cap rise
New Ofgem energy price cap comes into effect, but the Energy Price Guarantee will keep bills at around £3,000 a year for the typical household to £3,000.
October 31: Deadline for paper tax return
If you want to fill in your tax return manually, you'll have to do it byt the end of October. If you don't send your paper forms in time, you can instead fill out your tax return online - the deadline for this is January 31 the following year.
November
November 1: Energy help schemes start
Existing energy help schemes usually start to be paid in November. These include:
- Warm Home Discount scheme, which offers £150 off your energy bill to certain pensioners and those on a low income receiving certain benefits;
- Winter Fuel Payments, offering up to £300. If you receive a Winter Fuel Payment, then you'll be eligible for the pensioner cost of living payment as well - this means you could potentially get up to £600. Winter Fuel Payments are normally worth between £100 and £300 - depending on your age, who you live with and if you claim benefits;
- Cold Weather Payments, £25 for each 7 day period of very cold weather between 1 November and 31 March if you receive certain benefits.
November 2: Potential Interest rate rise
The Bank of England's Monetary Policy Committee (MPC) meet again
End of November: Energy price cap announcemnt
Ofgem will announce the price cap to take effect from January 1, 2024.
December
December 14: Potential Interest rate rise
The Bank of England's Monetary Policy Committee (MPC) last meeting of 2023.
Also expect in 3023
Mortgage hikes
As well as the potential for interest changes throughout the year, four four million mortgage holders are already set to see their monthly payments jump by the end of the 2023 when they move off cheap mortgage deals and are forced to refinance onto a higher rate.
Cost of Living payments
The Department for Work and Pensions (DWP) will be making payments totalling up to £1,350 to the most vulnerable in 2023 as the cost of living crisis continues. It is understood that more than eight million UK households will be eligible for the £900 payment, and millions more will also be eligible for the pensioner payment. Specific dates for the payments have not yet been confirmed, but it is understood the £900 payment will be split into installments.
Now read:
How to get help if you’re struggling with the cost of food - including voucher schemes
New coins with portrait of King Charles III unveiled by Royal Mint in commemorative collection
- How to work out how much your heating costs per hour
- How to defrost the condensate pipe on your boiler in 4 easy steps
- Heating on all the time or not? Martin Lewis answers age-old question
