As January 2025 unfolds, several important financial changes are set to impact UK residents, particularly pensioners. These adjustments, which include alterations to state pensions, Winter Fuel Payments, and tax regulations, are crucial for effective financial planning in the new year.
Key Takeaways
Ofgem Energy Price Cap Increase: Starting January 1, household energy bills will rise by 1.2%.
Bus Fare Cap Rise: The bus fare cap has increased from £2 to £3.
Winter Fuel Payment Changes: Payments will now be means-tested, affecting eligibility.
Self-Assessment Tax Return Deadline: January 31 is the final day for submitting tax returns.
Alcohol Duty Freeze Ends: Alcohol duty rates will increase on February 1.
Ofgem Energy Price Cap Increase
Effective from January 1, Ofgem has announced a 1.2% increase in energy prices for gas and electricity. This follows a 10% rise in October 2024, resulting in households paying approximately £160 more for their energy compared to September 2024. Consumers are encouraged to consider fixed tariffs to mitigate the impact of these price hikes, especially with another increase anticipated in April.
Bus Fare Cap Rise
The previous £2 cap on bus fares has been lifted, with a new cap set at £3 as of January 1. This represents a 50% increase, affecting services provided by First Bus and Stagecoach. Routes with fares below £3 will only see increases in line with inflation, while other routes may exceed this new cap. Notably, Transport for London and Greater Manchester have separate funding arrangements, keeping their fares lower.
Winter Fuel Payment Changes
A significant change to the Winter Fuel Payments has been announced, with the amount of £200 to £300 now being means-tested. This means that most state pensioners will not automatically receive these payments. Instead, only those claiming Pension Credit due to low income will be eligible. Payments should be received by January 29, and those who have not received notification are advised to follow up with the Winter Fuel Payment Centre.
Self-Assessment Tax Return Deadline
January 31 marks the deadline for self-assessment tax returns. Individuals earning over £1,000 from secondary income sources, such as rental properties or side businesses, must submit their returns by this date. Failure to do so may result in fines from HMRC, starting at £100 for late submissions. New filers must also register for self-assessment before the deadline.
Alcohol Duty Freeze Ends
The freeze on alcohol duty rates, which was extended until February 1, will conclude at the end of January. This means that prices for non-draught alcoholic products will increase, while draught products like pints in pubs will remain unaffected. For those participating in Dry January, the end of the month may present an opportunity for cheaper drinks before the price hike.
As these financial changes take effect, it is essential for individuals, particularly pensioners, to stay informed and adjust their financial plans accordingly. The adjustments in energy prices, transport fares, and government payments will significantly influence disposable income and overall financial health in 2025.
Sources
5 money changes in January from HMRC to pension Winter Fuel Payments | Personal Finance | Finance | Express.co.uk, Daily Express.
Komentarze