2022 was one of the hardest years in recent memory, with soaring costs putting pressure on millions of houeholds across the UK. A doubling of energy costs since last winter, record food inflation and other costs have left many worried about affording their bills in the months ahead.
The cost of living crisis meant governments have had to roll out several financial support packages including a £650 payment to those on benefits and a £400 discount off energy bills for all households. Experts have said 2023 is set to be another difficult year, as although inflation is set to slow by the middle of the year, the Bank of England has forecast a two-year recession - the longest since records began.
There is a lot happening in 2023, from changes to benefit and pension rates, more cost of living payments and energy cost changes, and it can be hard to keep track of it all. So we've rounded up all the upcoming changes that could make a difference to your finances this year, and when they are going to happen according to ChronicleLive. To get all the latest money-saving news straight to your inbox twice a week sign up here.
Read more: 12 ways you can save money in January if you're struggling post-Christmas
Energy price cap rise - January 1
The energy price cap increased to £4,279 for typical use from New Year's Day - but the government's energy price guarantee (EPG) will keep the average bill at around £2,500 a year until the end of March. The guarantee means the energy price cap, announced by regulators Ofgem every three months, is less relevant than usual and means that some people will see no change to their bills in January. This time last year the price cap was only £1,277.
While direct debit customers should see no change to their bills this month, according to MoneySavingExpert, for prepayment customers the change will amount to a £20 per year increase on average and a £39 a year rise for those who pay on receipt of bills. Based on typical use, the annual bill for a prepayment customer is £2,559 but is rising 0.8% to £2,579. For those who pay on receipt of their bill the typical yearly cost is going from £2,715 to £2,754 - a 1.4% increase. You can read more here.
Tax return deadline - January 31
If you're self-employed or a high earner, you've only got a month left to submit your online tax return for the 2021/2022 tax year. The deadline for filing paper-form tax returns ended on October 31, 2022, so you must now file online if you haven't yet. If you miss the deadline you could face a £100 penalty if your return is up to three months late. Further fines of £10 a day are applied after three months, up to a maximum of £900.
First payment on account deadline - January 31
Payments on account are advanced payments towards your tax bill if you are self-employed. These payments are normally made twice a year, to help spread the cost of your tax bill. The deadlines are January 31 and July 31.
Interest rate announcement - February 2
The Bank of England's Monetary Policy Committee (MPC) meets twice every quarter to decide if interest rates need to rise, and the first one of 2023 is on February 2. A rise is good news if you have shares and investments but not so good if you have a loan, credit card or mortgage. Read our explainer on how interest rates work here.
Energy price cap announcement - February 27
Ofgem will announce the price cap to take effect from April 1, 2023. The government's energy price guarantee is due to rise to £3,000 for a typical bill from that date and with the cap likely to be above that, many people will still be protected although some could see small increases.
Rail prices increase - March 5
Train prices will in increase by 5.9% from March. Fares usually rise each year based on the annual increase in the retail price index (RPI) from the previous July but the government has confirmed that rail fares won't rise by July's RPI value of 12.3% in March. However, it but is still the biggest hike in over ten years.
Interest rates announcement - March 23
The Bank of England's Monetary Policy Committee (MPC) second meeting of 2023.
Help to Buy deadline - March 31
Help to Buy equity loans can only be given once the purchase of your home is completed by March 31. Help to Buy is designed to help people who want to get ion the property ladder with a 5% deposit. The government lends you up to 20% of the property price and after five years you'll have to start paying interest on the loan. The current phase of the scheme, which has a price cap of £250,000, is due to close to applications at the end of March but has been extended for another two years in Wales with a new cap of £300,000 from April.
End of monthly energy discounts - March 31
The government's £400 discount off energy bills, which is spread over six months, ends in March having been given each month since October.
Energy price guarantee rises - April 1
The energy price guarantee, which caps the typical household energy bill at £2,500, rises to £3,000 from April 1. It means bills above this will be offset by the government, though you could still pay more than the cap if you use more energy than a typical household. Read how that works here.
National minimum and living wage rises - April 1
This year sees a 10% hike in the national living wage (NLW) from £9.50 to £10.42 an hour, meaning more than 2.5 million people will be paid more. The NLW is the minimum amount all employers have to pay staff aged 23 and over. Those younger than 23 can be paid the national minimum wage (NMW) instead, which will be set at a new rate of £10.18 for 21-22 year-olds and £7.49 for those aged 18-20.
Council tax increases - April 1
The government has already confirmed that it will allow local authorities to increase council tax above the cap of 2.99% but most councils still have to announce how much the actual rise will be. Confirmation of rises is usually shared at the beginning of the new financial year in April, and this rate will be payable from April 1. Some councils have already announced they are expecting a serious increase - in Newport, the council is reportedly considering a 9.5% hike alongside major cuts to services like bins and care.
Water charges increase - April 1
Any hikes to water bills will be announced in the coming months but will be payable from April 1.
Increases to council tax and housing benefit support - April 1
New rates and allowances for housing benefit where rent is paid monthly and council tax support are timed to coincide with the new council tax year and the week in which many rents change.
End of tax year - April 5
The end of the current tax year always falls on April 5, so this is your last chance to make the most of your tax-free ISA allowances for the year.
Changes to tax - April 6
The new tax year means that higher earners will be dragged into paying more tax following the 45% additional rate of income tax threshold that is being cut from £150,000 to £125,140. However the personal allowance will remain at £12,570, as will the 20% tax threshold from £12,571 to £50,270.
Benefits rate and state pension uplift - April 10
The Department for Work and Pensions (DWP) has confirmed it will increase benefits in line with the consumer price index (CPI) from April 2023. Announced in chancellor Jeremy Hunt's autumn statement on November 17 it means benefits will be increased in line with CPI of 10.1% which is taken from the figure from September. This includes the likes of working tax credit, child benefit, child tax credit, universal credit, attendance allowance and PIP.
The government is also reinstating the pension triple lock, meaning benefits will also rise with inflation on this date.
Interest rate announcement - May 11
The Bank of England's Monetary Policy Committee (MPC) third meeting of 2023.
Energy price cap announcement - end of May
Ofgem will announce the price cap to take effect from July 1, 2023.
Potential interest rate rise - June 22
Another meeting of the The Bank of England's Monetary Policy Committee (MPC) to set the Bank of England's base rate.
Energy price cap rise - July 1
New Ofgem energy price cap comes into effect, but the energy price guarantee will keep bills at around £3,000 a year for the typical household.
Deadline to use up stamps without barcodes - July 31
Royal Mail has started to phase in newer barcoded stamps, which will replace old-style ones. From July 31, only the new style stamps complete with barcodes will be valid and you'll face an extra charge if you try to use anything else.
Second payment on account deadline - July 31
Potential interest rate announcement - August 3
The Bank of England's Monetary Policy Committee's (MPC) fifth meeting of 2023.
Energy price cap announcement - end of August
Ofgem will announce the price cap to take effect from October 1, 2023.
Potential interest rate announcement - September 21
The sixth 2023 meeting of the Bank of England's Monetary Policy Committee.
Energy price cap rise - October 1
New Ofgem energy price cap comes into effect, but the energy price guarantee will keep bills at around £3,000 a year for the typical household.
Deadline for paper tax return - October 31
If you want to fill in your tax return manually, you'll have to do it by the end of October. 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 the following year.
Energy help schemes start - November 1
Existing energy help schemes usually start to be paid in November. These include the warm home discount scheme, which offers £150 off your energy bill to certain pensioners and those on a low income receiving certain benefits; winter fuel payments offering up to £300 as well as an additional £300 cost of living payment; and cold weather payments which give you £25 for each seven-day period of very cold weather between November 1 and 31 March 31 if you receive certain benefits. You can read about all the help that is available for heating bills here.
Potential Interest rate announcement - November 2
The Bank of England's Monetary Policy Committee (MPC) meet again
Energy price cap announcement - end of November
Ofgem will announce the price cap to take effect from January 1, 2024.
Potential Interest rate announcement - December 14
The Bank of England's Monetary Policy Committee (MPC) last meeting of 2023.
Other unconfirmed dates:
The DWP is giving people on means-tested benefits a £900 cost of living payment in 2023. Confirmed last year, the department said this week the money would be paid in three instalments with the first payment of £301 being made in spring 2023, followed by a second of £300 in the autumn 2003 and a final instalment of £299 in spring 2024. There will also be £300 for pensioners and £150 for those with disabilities but dates for these have not been announced yet. You can read more here.
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