SEVEN major money changes are coming in December which could impact your wallet, including cost of living payments worth £600.
The last month of the year can be a stressful one for households when factoring in Christmas and New Year's costs.
But there are a number of major money changes coming – most of which will impact your purse or wallet positively.
Millions on benefits will receive a £10 Christmas bonus, while millions more will get an up to £600 cost of living payment.
The Bank of England is set to decide on its base rate too, with any rises or falls having a knock-on effect on consumers.
Here's all the changes coming next month:
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£10 Christmas bonus
The £10 Christmas bonus is a one-off tax-free payment paid to people on certain benefits in December.
You don't need to make a claim if you qualify as the cash is paid automatically into your bank account before the 25th.
In most cases, it will show up as "DWP XB" on your statement.
But, you must get at least one of the following benefits in the "qualifying week", normally the first full week of December:
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- Adult Disability Payment
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Carer Support Payment
- Child Disability Payment
- Constant Attendance Allowance (paid under Industrial Injuries or War Pensions schemes)
- Contribution-based Employment and Support Allowance (once the main phase of the benefit is entered after the first 13 weeks of claim)
- Disability Living Allowance
- Incapacity Benefit at the long-term rate
- Industrial Death Benefit (for widows or widowers)
- Mobility Supplement
- Pension Credit – the guarantee element
- Personal Independence Payment (PIP)
- State Pension (including Graduated Retirement Benefit)
- Severe Disablement Allowance (transitionally protected)
- Unemployability Supplement or Allowance (paid under Industrial Injuries or War Pensions schemes)
- War Disablement Pension at State Pension age
- War Widow’s Pension
- Widowed Mother’s Allowance
- Widowed Parent’s Allowance
- Widow’s Pension
That means you can receive Universal Credit and be entitled for the £10 bonus, if you receive one of the qualifying benefits as well.
£300 cost of living deadline
Thousands of households can qualify for the last £300 cost of living payment by claiming Pension Credit by December 10.
To qualify for the payment you need to have been receiving the government benefit between August 18 and September 17 this year.
But you can backdate a Pension Credit claim by up to three months and to qualify for the £300 payment.
So, if you make a claim by December 10 and it is approved, you should receive the £300 payment which is set to be paid before spring 2024.
Not only that, but you will also start receiving money from Pension Credit, which is worth up to £201.05 a week for a single person.
Hundreds of thousands of people eligible for the benefit don't claim it – missing out on an average of £3,500 a year.
Interest rates
The Bank of England (BoE) is next meeting to decide its base rate on December 14.
Any rises or falls in the base rate tend to have a positive or negative knock-on effect on consumers.
This is because the base rate influences how much it costs banks and lenders to borrow from each other.
If interest rates are higher, you pay more to borrow on products like mortgages, but it also means savings rates on bank accounts go up.
The BoE held its rate at 5.25% the last two times it has met, with its governor Andrew Bailey warning against them falling soon.
Early benefit payments
Thousands on benefits such as Universal Credit will see payments land in accounts early next month.
This is because the government makes them earlier to those who would have been paid on a bank holiday date.
So, if you are due money on Christmas Day, or Boxing Day, you will receive it on December 22 instead.
Meanwhile, anyone due a payment on January 1, 2024 will see it land in their accounts on December 29.
Winter Fuel Payment
Winter Fuel Payments have already started being made at the start of November, but they will continue through December.
The government is also adding up to £300 top ups for those in line for payments this year.
That means you could be in line for an up to £600 cash boost, although the amount you get depends on your circumstances.
Either way, you will most likely be in line for any payment if you were born before September 25, 1957.
You also need to have lived in the UK for at least one day between September 18 and September 24, 2023.
Cold Weather Payments
Cold Weather payments are issued to households on certain benefits experiencing sub zero temperatures over a seven-day period.
The scheme runs between November this year and March 2024.
If you are eligible, you don't have to do anything as the money is paid automatically.
You receive £25 for each seven-day period where temperatures are below zero degrees Celsius.
That means you could receive £50 if cold weather persists for 14 days.
But, you have to be on certain benefits or receiving support for mortgage interest to qualify. The full list of qualifying benefits is:
- Pension Credit
- Income Support
- income-based Jobseeker’s Allowance (JSA)
- income-related Employment and Support Allowance (ESA)
- Universal Credit
If you do qualify, payments are usually made within 14 working days of the bout of cold weather.
Warm Home Discount
The Warm Home Discount is a one-off £150 discount on your electricity bill made between October and March.
That means some people will have already received their payment, but some will be made in December.
The money is not actually paid to you, but is an automatic discount applied to your bills.
You will have to apply if you live in Scotland
In England, you qualify for the £150 discount if you receive the Guarantee Credit element of Pension Credit or are on a low income or the following benefits:
- Housing Benefit
- income-related Employment and Support Allowance (ESA)
- income-based Jobseeker’s Allowance (JSA)
- Income Support
- the "Savings Credit" part of Pension Credit
- Universal Credit
In other news, Cadbury fans are rushing to buy advent calendars scanning at tills for £2.50 instead of £9.
Plus, the exact code to spot when the DWP Christmas bonus lands in bank accounts within days.
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