April brought with it a huge raft of bill increases, as the cost of living crisis worsened, and the month of May will also bring some huge financial changes and deadlines that families should be aware of.
From council tax to energy prices, it seems like almost everything is going up. Many households will have also seen a rise in broadband, mobile and mortgage payments too, reports the Mirror.
As millions of households struggle, the government is under mounting pressure to act. The Prime Minister is reportedly looking at ways to cut costs for the nation - mainly drivers and parents. You can read more about this here
READ MORE: Universal Credit claimants could boost cash from DWP by up to £1,600
After the price hikes April brought, we took a look at everything changing this month, from Universal Credit your Tesco Clubcard points. Here is what is changing, and how it will affect you.
Interest rates likely to rise
Interest rates are expected to be hiked from 0.75% to 1% this Thursday (May 5) in what would be the highest level for 13 years. The Bank of England is battling to cool rising inflation, which hit a new 30-year high of 7% in March and is expected to reach 8% later this year.
The base rate is what the BoE charges other banks and lenders - this then affects what you're charged if you borrow money, and how much interest you get back on your savings. For those with a mortgage, if you have a fixed-rate deal then your rates won't change if interest rates are hiked.
If you're on a tracker mortgage and interest rates are hiked, then your rates will go up as these move in line with the base rate. Those who are on a standard variable rate (SVR) mortgage may see rates increase, as it'll be down to your lender to decide whether to pass on the increase.
For savers, interest rate rises are generally good news as it means you could see a higher return on your money if you've got a variable rate account. However, there is no guarantee that banks and lenders will move in line with a potential hike - and some may take time to announce any changes.
Universal Credit shake-up
Up to 2.6million people on old-style legacy benefits are expected to start being moved over to Universal Credit from May 9. The “managed migration” process to Universal Credit had been paused due to Covid. The Government wants everyone to be moved over by the end of 2024.
People will start getting a “migration notice” in the coming months, giving them a three-month deadline to claim Universal Credit or have their benefits stopped. Only around 500 people will be moved to Universal Credit at first, but the Department for Work and Pensions (DWP) will ramp up the pace after a few months.
Those being affected are benefit claimants who get the following payments:
- Working Tax Credit
- Child Tax Credit
- Income-based Jobseeker’s Allowance
- Income Support
- Income-related Employment and Support Allowance
- Housing Benefit
If you claim the above benefits and want to move to Universal Credit straight away, you can asked to be moved over now - but do your research first.
Officials say 55% will be better off on the Universal Credit, but some will be worse off in the long term - and you can't move back to the old-style benefits once you're on Universal Credit. Some 400,000 people currently claiming will also see their benefits stopped.
You can use an online benefits calculator, such as this one from charity Turn2Us, to see how the change will affect you.
Council tax rebates
Council tax rebates worth £150 started dropping into the bank accounts of thousands of eligible households from last month - but not everyone has received the payment yet.
Some households face waiting months for the £150 to land in their account, with councils officially having until September 30 to issue the money.
The Mirror has checked in with dozens of local authorities and has highlighted 25 places where the rebates haven’t yet started to be processed. Some councils are expecting payments to start in May.
Those who pay their council tax by Direct Debit will receive the payments first, as councils have their details on the system already.
The council tax rebate will apply to homes in council tax bands A, B, C or D in England and Wales - roughly 80% of properties - but not those who live in council tax bands E, F, G and H (or I as well, in Wales).
Sky price increases
Sky landline customers saw the cost of making a call with Sky Talk on a home phone rise by 10% from the beginning of May. It means you now pay 22p per minute, up from 20p, to talk to family and friends.
This applies to Pay As You Talk customers making outgoing calls to mobile and home phone numbers. International calls may be charged at different rates, depending on your tariff.
If you're not happy with the price increases, you may want to consider looking for a cheaper deal by comparing prices online through Uswitch.com. Those who are out of contract can leave fee-free, but those who are locked into a deal may have to pay an exit fee to leave.
You could also consider haggling with Sky, if you don't want to leave but want to lower your monthly bill. Sky will also bring back EU roaming charges from May 3. This will cost £2 per day for holidaymakers who use mobile data, make calls and texts outside the UK.
Voxi introduces EU roaming charges
Voxi - a sub-brand of Vodafone - is to introduce mobile roaming charges for new and existing customers who holiday in Europe from 27 May. Customers will need to purchase a European roaming pass to make calls, send texts and use data in 49 European countries and destinations.
The roaming passes cost:
- £2 for a one-day pass
- £4 for a two-day pass
- £8 for a eight-day pass
- £15 for a 15-day pass
The roaming passes will also include unlimited texts and minutes, even if that's not what your UK Sim usually offers.
Tesco Clubcard deadline
Tesco shoppers have only a few weeks left to use £17million worth of unspent Clubcard vouchers before they expire in May. The supermarket said the vouchers were issued in May 2020 and must be used by May 31, 2022.
Tesco Clubcard vouchers are issued every three months, in February, May, August and November, and are valid for two years. The grocer is alerting customers that they can use these vouchers now, to get money off at Tesco.
To get Tesco vouchers through its Clubcard loyalty scheme, customers have to build up points by spending money in stores. Shoppers get one point for every £1 they spend in store and online, or one point for every £2 spent on fuel.
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