For many people Christmas is a financial pinch and as the cost of living crisis continues to loom people are under more pressure at this time of year than ever. But while December is an expensive month there are additional payments coming to many. For instance there are further cost of living payments due to arrive in December along with the next instalment of the £400 energy rebate.
As well as this for people who claim benefits there could be additional payments and also changes to when their benefits are paid due to bank holidays in December and January. The way Christmas falls this year will mean a slight change to when you get your money.
It's also likely people will see the true rise of inflation this month as the Office for National Statistics announces the inflation rate for the next 12 months in December. It's already above 11% with financial forecasters predicting this could rise again.
Read more: The important deadline for people claiming £400 energy bills discount vouchers
These are all the important dates and changes to look out for this month.
Those with set dates
Wednesday, December 14 - ONS latest inflation figures
The Office for National Statistics (ONS) will release the inflation rate for the 12 months to November on Wednesday, December 14. Consumer Price Index (CPI) inflation is currently at 11.1% – largely because of rising food and energy costs. Inflation is a figure used to explain how much the prices of everyday essentials have increased. When inflation is high it means the cost of living has increased and you’re getting less for your money than you did before.
Thursday, December 15 - Bank of England interest rates decision
Interest rates have been rising this year, which is good news for savers but not so good for borrowers. The Bank of England will meet on December 15 to decide whether to raise interest rates for the ninth time in a row.
The central bank increased its base rate on November 3 from 2.25% to 3% – a rise of 0.75 percentage points and the biggest single hike in more than 30 years. The base rate is what the Bank of England charges other banks and lenders – this in turn then influences the rates they charge customers. If interest rates are higher you'll pay more to borrow on products like mortgages and cheaper loans tend to disappear.
Sunday, December 18 - Pension credit cut-off date
Pension credit is a benefit that tops your income if you're over retirement age. If you think you might be eligible for pension credit then Sunday, December 18, is the last day to backdate a claim to qualify for the £324 cost of living payment.
Thursday, December 22 - ONS latest GDP figures
The ONS will reveal its latest gross domestic product (GDP) figures on Thursday, December 22. GDP is simply a measure of the size and health of the economy to show whether it has grown or shrunk in a certain period. Monitoring GDP is particularly important right now as the UK is already expected to be headed toward a recession.
Earlier this month the ONS said the UK economy shrank by 0.2% in the three months to September. A recession is defined as two consecutive quarters – six months – of negative growth.
Monday, December 26 - Boxing Day sales
The Boxing Day sales officially start on Monday, December 26, although online sales can often begin earlier. This can be a great time to stock up on discounted presents for next year. You may also find cut-price seasonal goods to put away for 2023 such as reduced Christmas trees and decorations.
No set dates
December - Benefits dates moved forward for some households
If your usual benefit payment date falls on a bank holiday then you may find you get paid earlier than normal. There are a few bank holiday dates coming up, including Monday, December 26, and Tuesday, December 27.
December 27 is a replacement bank holiday as Christmas Day falls on Sunday. If your benefit is due on these days then you may find you get paid on the previous working day, which is Friday, December 23. Households claiming tax credit may find their benefit payments due on Wednesday, December 28, are also paid on Friday, December 23, as well while money will land on December 28 for payments due on Thursday, December 29, in England and Scotland.
Then there is also a bank holiday on Monday, January 2, which is a replacement bank holiday for New Year's Day, which falls on a Sunday. If you'd normally expect a benefit payment on this day you'll likely be paid on Friday, December 30, instead. Tax credit-claiming households expecting a payment on Tuesday, January 3, will also be paid on December 30 while payments will be made on January 3 for payments due on Wednesday, January 4, in England and Northern Ireland.
December - £67 energy discount
Households have already received £66 in October and November for the energy bill discount payment – so £132 worth of discounts in total. Further payments worth £67 will be sent from December 2022 to March 2023.
Direct debit customers get the discount automatically either as a deduction to your monthly direct debit or as a refund to your bank account. If you pay on receipt of your bill the discount is applied as credit to your energy account each month.
Smart prepayment meter customers also get the discount automatically each month. If you're a prepay customer you will be sent discount vouchers by text, email, or post – you'll then need to manually redeem these. Read more about the important deadlines on claiming these here.
December - DWP Christmas bonus
The Department for Work and Pensions ( DWP ) is sending out a £10 Christmas bonus to households in receipt of certain benefits in December. You can see the list of benefits that qualify you for the payment here.
Brits need to receive these benefits in the "qualifying week", which is usually the first full week of December. They must also be present or "ordinarily resident" in the UK, Channel Islands, Isle of Man, or Gibraltar. The DWP hasn't officially given a date for when the Christmas bonus will be paid.
However people started receiving it from the start of December last year so it is likely to be around this time again. The Christmas payment may show up as "DWP XB" on your bank statement.
December - £300 pensioner cost of living payment
Pensioners who receive a winter fuel payment will get an extra £300 on top of this thanks to a new cost of living payment being sent out in November and December. Winter fuel payments are normally worth between £100 and £300 meaning the maximum someone could get is £600 with the cost of living payment on top. The money should be received by January 13, 2023.
It will appear in bank statements with the payment reference starting with your National Insurance number followed by "DWP WFP" for people in Great Britain or "DFC WFP" for people in Northern Ireland. You could be eligible for a Winter Fuel Payment if you were born before September 26, 1956. You normally need to have lived in the UK for at least one day in the qualifying week, which this year is between September 19 and 25, 2022.
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