A number of changes are coming into affect from today and across May that could make a big difference to your finances. The changes will be happening across the month and will include alterations to DWP benefit dates, energy bills and other bills and costs.
It comes as the DWP began rolling out the £301 cost of living payment to millions of households last week. That money is part of a £900 overall cost of living package being given in three instalments to those on means-tested benefits over the course of 2023.
The changes happening in May could impact your finances so it's worth checking if you're going to be affected. Here are all the changes happening to your money this month. To get all the latest money-saving news straight to your inbox twice a week sign up here.
Read more: DWP benefits and Universal Credit users face big payment changes today
May - £301 cost of living payment
Many DWP benefit claimants began getting their £301 cost of living payment from April 25 and millions have already received it. The DWP has committed to completing the payments to all eligible claimants by May 17. Tax credit claimants who receive no other benefits will get their money from HM Revenue and Customs (HMRC) between May 2 and May 9.
May - First payments since benefits uplift
From April 10 the DWP increased benefits in line with the September 2022 consumer price index (CPI) figure. Announced in chancellor Jeremy Hunt's autumn statement last November, it means benefits are increased in line with CPI of 10.1%. This includes the likes of working tax credit, child benefit, child tax credit, universal credit, attendance allowance, and PIP. The government has also reinstates the pension triple lock meaning benefits will also rise with inflation on this date.
Many should expect to see their first full month's payment of new support with the higher rate this month. It is estimated that some could see an increase of nearly £100 to their benefit payments.
May 1, 8 and 29 - bank holiday payment date changes
There are a number of changes to your usual benefit payment dates owing to the three bank holidays taking place in May. They are as follows:
- If you are due to be paid on the Monday, May 1 Bank Holiday in Scotland, England and Wales you will be paid on Friday, April 28.
- If you are due to be paid on the Monday, May 8 Bank Holiday in Scotland, England and Wales you will be paid on Friday, May 5.
- If you are due to be paid on Monday, May Bank 29 Holiday in Scotland, England and Wales you will be paid on Friday, May 26.
May 2 - Increases to Tesco delivery fees
Tesco is also increasing its minimum spending limit for customers to be eligible for free home delivery online. The cost for anyone who doesn't meet the limit is also rising. From May 2, customers will need to pay £5 for delivery if they don't spend a minimum of £50.
If shoppers spend over this amount, they will not have to pay the extra cost. The change will not affect click-and-collect orders with the minimum fee sticking to £25.
From May 2 - renewal packs for tax credit claimants go out
Those who claim tax credits will receive a renewal pack from HMRC starting from May 2, as previously stated by the department. Two types of renewal packs will be sent out telling claimants what action is needed. One renewal pack, which has a red line across the first page and says ‘reply now’, will require customers to confirm their circumstances to renew their tax credits.
The second pack will have a black line across the first page and will state 'check now', meaning claimants will need to ensure their details are correct. If they are not, the claimant will need to update their details to continue getting their tax credits.
May 11 - Interest rates announcement
The Bank of England (BoE) will announce any changes it will make to interest rates on May 11. If the monetary policy committee decides to increase the base rate again, it will be the twelfth time in a row. The base rate is currently 4.25%.
Experts suggest this rate could be increased further in order to curb inflation following last month's smaller-than-expected drop in CPI inflation. Last month, Deutsche Bank economists predicted rates were most likely to peak at 4.25% but now say they will peak at 4.75%.
May 19 - Pension credit deadline for nearly one million people
Pensioners only have until May 19 to check if they qualify for pension credit and get some extra cash. If they backdate their claim, they could also qualify for the £301 cost of living payment.
An estimated 850,000 people are thought to be missing out on the l benefit which tops up pensioners' weekly incomes.
May 24 - New inflation figures released
On May 24, we should find out the consumer price index (CPI) inflation rate for April. Inflation is a measure of how fast prices are rising for shoppers across the country.
The Bank of England is meant to try to keep inflation as close to 2% as possible at all times, but the rate has soared recently amid the ongoing cost of living crisis. In March inflation hit 10.1%, a slight fall from 10.4% in February, but still higher than the 9.8% that experts had expected.
Economists believe inflation will drop more sharply from April as energy prices are expected to fall, but we won't find this out for sure until May 24.
May 26 - Ofgem price cap announcement
Energy regulator Ofgem will announce the price cap for the period between July 1 and September 30 on May 26. The price cap is set every three months but last year the energy price guarantee (EPG) temporarily replaced the price cap, meaning people have been protected from increases as the guarantee is currently £2,500 for a typical household - less than the current price cap of £3,280.
From July, however, the EPG will increase to £3,000, and the Ofgem price cap is predicted to fall below that. According to estimates, the price cap is likely to be just over £2,000 a year, but we'll find out the exact amount on May 26.
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