We round up all the money changes coming in December 2024, including the DWP Christmas bonus, inflation, interest rates, benefits being paid early and an important Winter Fuel Payment deadline
December can be a tricky month financially due to the cost of Christmas – but there are plenty of big money changes coming up that will impact your wallets.
There will be a Christmas bonus payment for some households, while in not-so-good news, Nationwide is hiking fees for certain bank account holders. We’ll also get an update on inflation and interest rates, while an important deadline also looms for the Winter Fuel Payment.
Certain winter help schemes will also continue into December, including Cold Weather Payments and the Warm Home Discount. Here is everything you need to know.
DWP Christmas bonus – from December 1
The Department for Work and Pensions (DWP) will soon send out its Christmas bonus, worth £10. In previous years, it has been paid to eligible households during the first week of December. It is tax-free, does not affect any other benefits you’re claiming, and should come through by January 1 at the latest. You have to be claiming certain benefits to get the DWP Christmas bonus.
Nationwide to hike bank account fee – from December 1
Nationwide is increasing the fee on its FlexPlus packaged bank account by £5 a month from December 1 – this means you’ll pay £60 more over a year. You currently pay £13 a month for the FlexPlus account but this will rise to £18 a month. The FlexPlus account offers travel and mobile phone insurance plus breakdown cover.
Inflation – December 18
The latest inflation data from the Office for National Statistics (ONS) will be released on December 18. Inflation is a measure of how prices have changed over time. In the latest update from the ONS, inflation was revealed to have crept back above the Bank of England target, after it rose to 2.3%. At its highest point, inflation reached 11.1% in October 2022.
Bank of England interest rates – December 19
The Bank of England will make its next interest rates announcement on December 19. The base rate is currently at 4.75% after the Bank of England announced its second cut of the year at its last meeting in November. The base rate is what the Bank of England charges other banks and lenders – this then increases your cost of borrowing as a customer.
Winter Fuel Payment deadline – December 21
Millions of pensioners will no longer receive their Winter Fuel Payment this year after the eligibility was changed – and you now need to be in receipt of a means-tested benefit. In order to be eligible for a Winter Fuel Payment this year, you must have been born before September 23, 1958 and claiming a benefit between September 16 and September 22, 2024.
But there is one benefit that can be backdated. Pension Credit can be backdated by three months – so if you put in a claim for Pension Credit by December 21, you’ll still receive your Winter Fuel Payment for this year.
Benefits paid early – December 24 and December 31
Thousands of people will see their benefits paid early next month due to the Christmas and New Year bank holidays. This year, Christmas Day will fall on a Wednesday, and Boxing Day is on Thursday. This means if you’re due a benefit on either of these days, you’ll likely be paid on Tuesday, December 24 instead.
Similarly, if you’re due a benefit payment on January 1, which will fall on a Wednesday, you should receive your benefit payment on Tuesday, December 31.
Winter help schemes – throughout December
There will be several support schemes carrying on throughout December. The DWP will continue to pay out Cold Weather Payments worth £25 when temperatures drop below zero degrees for seven consecutive days, as well as its Winter Fuel Payments, worth up to £300. Households will also continue to receive the Warm Home Discount, worth £150 off your electricity bill.
