With the cost of living crisis in the news on a daily basis, talk of rising fuel price caps and increasing weekly food bills, finding some bright spots at the moment is challenging. Add to this the multitude of numbers and dates flying around covering everything from when the next Prime Minister will be announced to when the cost of living payment should arrive in bank accounts, and the whole thing can have your head spinning.
As September gets underway, we know that we start the month with inflation at a 40 year high, it is currently 10.1%, and next month we can expect the Ofgem price cap to rise to £3,549. With all this in mind, and with the help of Nottinghamshire Live's parent publication The Mirror, outlined below are the ten financial updates to expect this month. They're all in date order.
1: Friday, September 2 - £326 cost of living payment for Tax Credit households
Households who claim Tax Credits will receive the first half of their £650 cost of living payment from September 2. The cash - worth £326 - should arrive in the bank accounts of eligible Brits by September 7. Tax Credit households must have been entitled, or later found to be entitled, to a payment or an annual award of at least £26 for any day between April 26, 2022 and May 25, 2022. The payment will contain the reference “CL” followed by your National Insurance number followed by “0001AX”.
2: Monday, September 5 - New Prime Minister
Results for the leadership contest will be announced and the UK will discover whether Liz Truss or Rishi Sunak will become the new Prime Minister. The new Conservative Party leader is being urged by consumer champions to tackle the cost of living crisis as a matter of urgency. The last round of Government help was announced in May, and since then, energy bills have continued to spiral and the new price cap for October has been confirmed.
READ MORE: DWP urges Brits to apply for £3,300 extra boost as millions are missing out
3: Wednesday, September 14 - Inflation rate
The Office for National Statistics (ONS) will release inflation rates for the 12 months to August on September 14. Consumer Price Index (CPI) inflation is currently at 10.1% - but the Bank of England expects it to hit 13.3% in October. 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.
4: Thursday, September 15 - Interest rates
The Bank of England will meet on Thursday, September 15 to decide whether to raise interest rates for the seventh time in a row. The central bank increased its base rate earlier this month from 1.25% to 1.75% - a rise of 0.5 percentage points and the biggest single rise in 27 years.
The base rate is what the Bank of England charges other banks and lenders - this in turn then influences the rates they charge customers. If interest rates are higher, you'll pay more to borrow on products like mortgages and cheaper loans tend to disappear.
5: Thursday, September 15 - Amazon Prime price hike
Also on Thursday, September 15, Amazon has confirmed it is increasing the price of its Prime delivery and streaming service. The cost of Prime for monthly subscribers will rise from £7.99 to £8.99, while its annual membership will increase from £79 to £95. The new rates will kick in from this date for new customers, or on the date of your next renewal.
6: Tuesday, September 20 - £150 disability cost of living payment
Six million disabled people will get their £150 cost of living payment from Tuesday, September 20. People on Personal Independence Payment (PIP) and Attendance Allowance are among those who qualify - but Employment and Support Allowance (ESA) is not included. People on income-related ESA were due to get a separate £324 payment in July. You must have received a payment - or later receive a payment - of one of these qualifying benefits by May 25, 2022 to get the cost of living cash.
7: Monday, September 26 - Universal Credit changes
Roughly 114,000 people on Universal Credit will be moved from the "light touch" work group to "intensive work search" from September 26. This is due to a planned increase in the Administration Earnings Threshold (AET). The AET determines which "work group" you’re placed in - this then has an impact on if you’re required to look for more work. The rate is being increased from £355 a month to £494 a month, or from £567 a month to £782 a month for joint claims, from September 26.
8: Friday, September 30 - Household Support Fund deadline
Councils have until Friday, September 30, to spend or "commit" to spend the remainder of the extra £500million that was put into the Household Support Fund. The support available is decided by each individual council, as well as the eligibility criteria. Some of the help that is offered through the Household Support Fund includes cash or credit towards your bills and supermarket vouchers.
9: Friday, September 30 - Last day to spend paper £20 and £50 notes
The Bank of England will withdraw the legal tender status of old paper £20 and £50 notes after September 30, 2022. You can still spend these bank notes in stores before this date, or you can deposit them at your bank or the Post Office. If you're trading them in, your old paper notes will be replaced with new plastic polymer versions. If you miss the September 30 deadline, you can still swap your old bank notes for new polymer versions at the Bank of England. Some banks will also still continue to accept old notes after September.
10: Friday, September 30 - Energy meter reading day
The last time the price cap rose in April, experts including Martin Lewis suggested taking a meter reading the day before the new figure came into place. This is so customers can tell their energy providers exactly much gas and electricity they are using before the price soars once again, reducing the risk of you being overcharged. If you apply this logic again before October 1, then you should look to submit an energy meter reading on Friday, September 30, the day before everything goes up.
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