People in the UK will be seeing a number of financial changes in October - here is a list of the things you should expect.
Some of the key dates to note down include changes to your energy bills and cost of living payments. The new Energy Price Guarantee will come into force from October 1 and we have explained what it means below.
This comes as families across the country struggle with the high costs of living. Inflation, which is a measure of how much prices have changed, is currently at a 40-year high of 9.9%.
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The Bank of England has been raising interest rates as part of its plans to lower inflation, with its base rate currently set at 2.25%, reports The Mirror. Analysts are predicting interest rates could now hit 6% next year. Here are some key financial dates to be aware of in October.
1. Energy bills frozen at £2,500 - October 1
The new Energy Price Guarantee will come into force from October 1 and will freeze energy bills for the typical household at £2,500.
This is lower than the £3,549 Ofgem price cap that was due to come in on this date, meaning Brits won't face the hideous price rises that were expected this winter. However, it is still higher than the current £1,971 Ofgem price cap - and more than £1,000 more expensive that what households were paying last year.
It is important to note that this £2,500 figure is not an absolute cap on your bills - it is used to illustrate what the typical household will pay a year. The new Energy Price Guarantee caps the unit rates you're charged for gas and electricity, along with the standing charges. This means if you use more energy, you'll pay more - use less, and you'll pay less.
Here are the average unit rates for dual-fuel customers paying by direct debit:
Electricity
- Unit rate: 34.00p per kWh
- Standing charge: 46.36p per day
Gas
- Unit rate: 10.30p per kWh
- Standing charge: 28.49p per day
2. Energy bill discount worth £400 - October 1
An energy bill discount worth £400 will start to be sent out from October, spread out over six months. You'll get £66 off your bill in October and November, then £67 from December 2022 to March 2023.
How you get the discount depends on how you pay for your energy, as well as which supplier you're with. Direct debit customers will receive the discount automatically - it will be applied either as a deduction to your monthly direct debit, or as a refund to your bank account.
If you pay on receipt of your bill, the discount will come as a credit to your energy account each month. Smart prepayment meter customers will also receive the discount automatically each month.
If you're a prepay customer, you will be sent discount vouchers by text, email or post - you'll then need to manually redeem these.
3. Rates on Premium Bonds boosted - October 1
National Savings and Investments (NS&I) will increase the prize fund rate on its Premium Bonds from October. The rate will rise from 1.40% to 2.20%, adding an expected £76m to the prize fund for October.
The changes will see the number of £5,000, £10,000, £25,000, £50,000 and £100,000 prizes almost double. There will also be 19 times as many £50 and £100 prizes paid out from October. The odds of each £1 Premium Bond number winning a prize will also improve from 24,500 to 1 to 24,000 to 1.
4. Register for self-assessment tax return - October 5
If you've never submitted a self-assessment tax return before, you must register by October 5 - this is for the 2021/22 tax year. Registering for self-assessment means you'll be given your Unique Taxpayer Reference (UTR) to file your tax return.
The tax return deadline for the 2021/22 tax year is October 31 for those completed on paper forms, and January 31, 2023, for online returns. You can check if you need to complete a tax return by using the free online tool on Gov.uk.
Those who need to complete a self-assessment tax return are generally those who:
- Are newly self-employed and earned more than £1,000
- Are a new partner in a business partnership
- Have received any untaxed income
- Are claiming Child Benefit but they or their partner have an income above £50,000
5. Latest inflation rate - October 19
The Office for National Statistics (ONS) will release inflation rates for the 12 months to September on October 19. Consumer Price Index (CPI) inflation is currently at 9.9% - slightly down on the 10.1% that was recorded in the previous month.
Inflation is a figure used to explain how much the prices of everyday essentials have increased. When inflation is high, it means the cost of living has increased and you’re getting less for your money than you did before.
6. Clocks go back - October 30
The clocks will go back on October 30, which means the days get shorter and darker as we switch from British Summer Time to Greenwich Mean Time. For many night shift workers who are on duty during the early hours, it could mean an extra hour in work.
If you find you're working an extra hour, whether you get paid extra or not also depends on what is written in your contract and on how you're usually paid by your employer. Those who are paid by the hour should find they get extra money - meaning night shift workers could get extra pay for their work this Sunday.
But if you're paid a salary, or paid per shift, your company doesn't have to pay you any more than usual unless this is written in your contract. If you find yourself in this situation, you can try asking your boss for an hour in lieu to make up for the extra time you've worked.
7. Tax return deadline for paper forms - October 31
If you're submitting your tax return in the post, the deadline for paper forms is October 31. If you miss this deadline, you’ll be charged a late filing penalty of £100 if your tax return is up to three months late.
You can be charged more on top of this if it is later - plus interest - or if you pay your tax bill late. If you don't send your paper forms in time, you can instead fill out your tax return online - the deadline for this is January 31, 2023. Don't submit both a paper and online tax return.
8. Ovo Energy Hardship Scheme opens - October 1
Ovo Energy will open its new hardship scheme for its customers from October 1. The help on offer will include payment holidays for all prepayment meter customers who are in debt.
It means households who are behind on their bills will see their money go towards heating their home, rather than paying back debts. But as a payment holiday is only a temporary break, the debt will still need to be paid back eventually.
The new OVO support will also include a 200% increase in emergency top-up credit for prepayment meter customers. Customers who are vulnerable will also be able to access free technology and heat devices, such as smart thermostats and electric throws, along with free boiler checks.
Other financial updates happening in October - no set date
9. £150 disability payment
Cost of living payments worth £150 for people on certain disability benefits will continue to be issued into October. The Department for Work and Pensions (DWP) confirmed it had started issuing payments from September 20 - but said the "vast majority" of people will get the cash in early October.
You will be eligible for the £150 disability cost of living payment if you claim one of the following benefits:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment (in Scotland)
- Child Disability Payment (in Scotland)
- Armed Forces Independence Payment
- War Pension Mobility Supplement
You must have received one of these benefits - or later received a payment - on May 25, 2022 to get the £150 cost of living cash.
10. Scotland to pay £130 to families who get free school meals
Families in Scotland will get £130 in October, just before the start of the school holidays. The cash is part of the Scottish Child Payment Bridging Payment scheme and is awarded to those who claim free school meals.
This is usually because you're on a low income or getting certain benefits. Check the full eligibility criteria for free school meals if you're not sure. A second payment of £130 will also be made available in December, and follows two other £130 payments that were issued in the Easter and summer school holidays.
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