Mirror Money rounds up all the financial updates and changes that are coming up in January 2025 – from energy bills, to inflation and bus fares
It’s the start of a New Year – and already there are plenty of money changes coming up in January that can affect your finances.
Energy bills have gone up for millions of households, and there are new rules incoming for broadband and mobile price rises. There is also a key deadline coming up for those who’ve yet to receive their Winter Fuel Payment, plus we’ve have the next inflation update to note in your diary. Here is everything you need to know.
January 1 – Ofgem energy price cap rises
The Ofgem energy price cap rose from £1,717 to £1,738 a year on January 1. This figure represents a household that uses an average amount of energy, and who pays by direct debit. Your bill can be higher or lower than this, depending on how much gas and electricity you consume. Ofgem updates its price cap every three months, so it will change again in April, July and October.
January 1 – Bus cap rises
The cap on bus fares rose from £2 to £3 on January 1. The cap, which covers most bus journeys in England, will remain at £3 until the end of 2025. Some councils have confirmed they’ll keep the cap lower in their areas, by subsidising the cost themselves, or through local transport schemes.
January 1 – VAT tax break for private schools ends
Private schools are now charged VAT on fees, as of January 1. VAT is charged at a rate of 20% on education and boarding fees charged by private schools. The charge was first confirmed by Chancellor Rachel Reeves in her Budget last year.
January 15 – Inflation update
The first inflation update of the year will be released on January 15. Inflation is a measure of how prices have changed over time and is currently at 2.6%. At its highest point, inflation reached 11.1% in the 12 months to October 2022 – but despite its fall in recent months, it is now back above the Bank of England target of 2% inflation. New inflation data is released by the Office for National Statistics every month.
January 17 – New rules for broadband and mobile price rises
A ban on telecom firms from using mid-contract price rises that are linked to inflation will come into force from January 17. Ofcom introduced this ban after inflation-linked price rises were ruled to be “confusing” for households. Mobile and broadband customers must now be told in “pounds and pence” how much their contract will rise by each year.
January 29 – Winter Fuel Payment deadline
If you haven’t received your Winter Fuel Payment, you can contact the Winter Fuel Payment Centre from January 29. The Winter Fuel Payment used to be available to everyone over state pension age, but the rules changed this year so that you also now need to be in receipt of a means-tested benefit, such as Pension Credit.
January 31 – Self-assessment tax deadline
If you have to submit a self-assessment tax return, the deadline for filing this online is January 31. This applies for the 2023/24 tax year. If you miss this deadline, you face a fine of at least £100 – even if you have no tax to pay. You also need to pay any tax you owe for the previous tax year.