The Mirror rounds up all the key financial updates coming in May 2025 and we explain exactly how they will impact your wallet
There are big changes coming up in May 2025 that could impact your finances. NatWest is expected to complete its takeover of Sainsbury’s Bank next month, while Nationwide should confirm whether it will issue a new round of £100 bonus payments.
Meanwhile, interest rates could go down, in what would be welcome news for millions of homeowners, with the Bank of England set to issue an update soon. However, inflation is expected to have risen due to higher energy bills.
But energy bills could soon be able to come down, with Ofgem also set to announce its July price cap. Finally, there are key dates to watch out for next month if you claim benefits and self-assessment taxpayers who’ve yet to file their return will soon be subject to fines.
May 1 – NatWest takeover of Sainsbury’s Bank
Sainsbury’s Bank customers with personal loans, credit card and savings accounts will be transferred to NatWest from May 1. It comes after NatWest agreed to takeover Sainsbury’s Bank in a deal worth around £2.5billion.
Sainsbury’s Bank stopped offering new credit cards and loans last August, and no longer accepted applications for new savings accounts from last month. Sainsbury’s Bank will continue to offer insurance and travel money services.
May 1 – £10 a day penalties for late tax returns begin
If you missed the self-assessment deadline on January 31, you will start to receive £10 a day fines from May 1. These will keep accumulating until they reach £900. Once the form is six months late, you’ll either be charged 5% of the tax due or £300 – whichever is higher. This comes on top of the initial £100 penalty for missing the January 31 deadline.
May 5 – May bank holiday
Thousands of people in receipt of benefits will be paid earlier than normal next month due to there being two bank holidays in May. The first bank holiday is on Monday, May 5. If you’re due a benefit payment on this day, you’ll receive your payment on Friday, May 2 instead.
May 8 – Bank of England interest rates announcement
The Bank of England will make its next interest rates announcement on May 8. The base rate is currently at 4.5% after the Bank of England held it at its last meeting in March. The base rate is what the Bank of England charges other banks and lenders – this then affects how much it costs you to borrow money.
May 21 – Latest inflation update
The latest inflation data from the Office for National Statistics (ONS) will be released on May 21. Inflation is a measure of how prices have changed over time. In the latest update from the ONS, inflation was revealed to have fallen by more than expected to 2.6%. Experts are expecting it to rise again after energy bills went up. At its highest point, inflation reached 11.1% in October 2022.
May 26 – May bank holiday
The second bank holiday that could affect your benefit payments is on Monday, May 26. If you’re due a benefit payment on this day, you’ll receive your payment on Friday, May 23 instead.
May 27 – Ofgem price cap announcement
Ofgem will announce its new energy price cap by May 27. This new rate will come into force from July 1 and will run for three months, until August 31. The Ofgem price cap is currently set at £1,849 a year for the average dual fuel household paying by direct debit. Energy analysts at Cornwall Insight are predicting it could fall to £1,683.
May 29 – Nationwide £100 bonus confirmed
Nationwide is expected to confirm if it will pay another round of £100 Fairer Share bonuses to its customers on May 29. This is when the building society will publish its latest full-year financial results.
The bonus is based on the building society’s financial performance. Last year, Nationwide paid out a total of £385million in June to 3.85 million customers after the building society announced profits of £2billion.
May 31 – P60 deadline
Your employer must issue your latest P60 by May 31. Your P60 summarises your total pay and deductions for the tax year. You need your P60 to prove how much tax you’ve paid on your salary and as proof of your income if you apply for a loan or a mortgage.
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