A number of changes will be coming into effect throughout February impacting many people's finances, while additional support payments will also be made to help people through the cost of living crisis.
Currently, energy bills remain at their highest level while inflation still stands at a staggering 10.5 per cent.
Despite this, a wave of government support will be handed out throughout February to help vulnerable households face the brunt of the economic crisis. These mainly come in the form of discounts and payments towards energy bills but can also include cash handouts in some circumstances.
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Here's a breakdown of all the big money changes and support coming in February.
Changes to Universal Credit
In a major change to benefits, thousands of Universal Credit claimants will be encouraged to find more work or increase the number of working hours they currently do. The threshold of working hours required to not meet regularly with a Jobcentre coach will increase from 12 to 15 hours a week - or 24 hours a week if you claim as a couple.
The regulation, which will begin impacting claimants from February 26, will give sanctions to those who fail to fulfil their work duties given by the Jobcentre.
You can read more about the changes here.
Interest Rates announcement
The Bank of England will announce a fresh assessment of its interest rates on February 2. The base rate will affect how much money you have to pay back on loans and mortgages.
If interest rates become higher, then you will pay more on mortgages, loans, and credit cards which may affect many people's financial situations.
You can read more about what might be announced here.
Changes to passport fees
From February 2, the Home Office will introduce higher fees for applying for and renewing passports. Application fees will rise from £75.50 to £82.50 for adults and from £49 to £53.50.
Meanwhile, postal applications will rise from £85 to £93 for adults and from £58.50 to £64 for children. Fees will also increase for online applications for overseas applicants from £86 to £94 for adults and from £56 to £61 for children.
Overseas standard paper applications will increase from £95.50 to £104.50 for adults and from £65.50 to £71.50 for children.
You can read more about changes to passport fees here.
Energy discount payment
Households all across the country will continue to receive instalments of the £400 energy discount. In February, £67 will be sent out with the last instalment coming in March.
The discount will be provided automatically for those who pay by direct debit while those who pay on receipt of an invoice will see the discount applied as credit to their energy account.
Cold Weather Payments
During consecutive periods of cold weather in February, some households could receive £25. In order to be eligible, recipients must be receiving one of the qualifying benefits.
These include: Pension Credit, Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance or Universal Credit.
Cold weather payments are triggered when the average temperature in an area is recorded, or forecast, to dip below zero degrees celsius for over seven consecutive days. You can find out more about the payments here.
Warm Home Discount
Some households may be eligible to get money taken off their energy bills. In order to qualify, recipients must be receiving Pension Credit, Income-related Employment and Support Allowance, Income-based Jobseeker’s Allowance, Income Support, Universal Credit, Housing Benefit or Child Tax Credits and Working Tax Credits.
Ofgem price cap announcement
The energy regulator will announce its energy price cap for April to June on February 27. While this is expected to increase, households are currently protected by the Energy Price Guarantee which will rise to £3,000 a year from April.
However, Ofgem boss Jonathan Brearley hinted that there was a possibility the price cap could fall below £3,000 in April due to falling wholesale gas and electricity prices.
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