As autumn sets in, a series of key financial changes are coming into effect this October that will impact wallets and bank accounts across the UK. From the final instalment of energy bill help to increases in state pensions, it's crucial to stay informed.
1. The Final Energy Bills Support Scheme Payment
Households will receive the last £66 discount on their energy bills this month, marking the end of the government's support scheme. This brings the total discount received over the winter to £400. With the energy price cap falling in October, this final payment offers some additional relief, but experts warn bills will remain significantly higher than pre-crisis levels.
2. Benefits and State Pension Rise
Millions on benefits and the state pension will see their payments increase by 10.1% from October. This significant uplift, based on September 2022's inflation rate, applies to Universal Credit, Personal Independence Payment (PIP), and Jobseeker's Allowance. The full new state pension will rise to over £200 per week.
3. National Minimum Wage Increase
Workers on the National Living Wage will get a pay boost. The rate for those aged 23 and over increases to £10.42 per hour. Younger workers on the standard National Minimum Wage will also see their hourly pay rise, providing a welcome lift for many during the cost-of-living squeeze.
4. Water Bills Set to Rise
While not immediate, many water companies will announce their new pricing plans for the coming year in October. With inflation high, households are being warned to prepare for potential increases in their water bills from April 2024.
5. Help with Childcare Costs
Parents receiving Universal Credit can now claim back up to £951 per month for one child and £1,630 for two or more children in childcare costs. This change, which removes the previous cap, is designed to make it easier for parents to return to work or increase their hours.
6. Stricter Rules for Vaping Products
In a move to curb underage vaping, new regulations come into force limiting the nicotine strength and volume of vape liquids that can be sold. The rules also ban certain child-friendly flavours and packaging.
7. End of Paper Rail Tickets for Some
Several train operators are phasing out paper tickets at specific stations in favour of smartcards and mobile tickets. While aimed at modernising travel, passengers are advised to check the new ticketing rules for their regular routes to avoid being caught out.
Staying on top of these changes is key to managing your finances effectively this October. With energy costs still a concern and inflation impacting everyday spending, every bit of information helps in navigating the current economic climate.
