THERE are some big changes coming in February that could have an impact on your bank balance.
From interest rate hikes to rising energy bills, there are some important dates for your diary next month.
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Bills are set to rise further this year and several key announcements will be made in February.
That includes information on how much your energy bills will rise by this year and some mobile phone contract hikes.
There will also be changes to Universal Credit for terminally-ill claimants.
Meanwhile, an important deadline is approaching for consumers who were mis-sold payday or doorstep loans.
They have just a few weeks to claim compensation that could be worth hundreds of pounds.
We explain what financial changes are coming up in February and how they could affect your pocket.
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Bank of England interest rate decision – February 3
The Bank of England is preparing to raise interest rates at a meeting this week after voting through a rise in December.
The bank raised rates to 0.25% at the end of last year, for the first time since August 2018.
Its monetary policy committee will meet on Thursday to vote on whether to hike rates for a second time.
Rate rises are bad for anyone with debt – particularly if you’re not locked into a fixed rate.
Credit cards, overdrafts and mortgage rates could all be affected.
However, a rise would be good for savers who can get improved rates on savings accounts and Isas.
Energy price cap – February 7
The energy price cap limits how much suppliers can charge for default tariffs, and it’s set to go up this year.
It’s reviewed every six months, with the next update set for February 7.
Millions of households have come off cheap fixed tariffs when their previous suppliers have gone bust, meaning they’re protected by the price cap.
But the cap is expected to go up from £1,277 to £1,900 for an average household.
That means millions of Brits will be paying an extra £600 a year for energy bills when the new limit is introduced in April.
Universal Credit rule change – February 15
Universal Credit claimants have to agree to taking certain steps in order to receive their benefit payments – this is called the claimant commitment.
From February 15, terminally ill claimants will not have to demonstrate that they’re taking certain measures in order to get their payments.
Anyone currently getting benefits under the special rules for terminal illness is exempt from having to search for work.
But they’re not automatically exempt from other claimant commitments.
This will change next month, meaning those nearing the end of their lives won’t have to meet specific targets to get their payments.
It was also announced last year that terminally-ill patients will get fast-tracked access to benefits.
Claimants in the final year of their lives will have their applications prioritised.
Previously, those rules were only in place for people with six months or less to live.
O2 hikes prices- February 17
The Retail Price Index will be revealed on February 17 – which could be of interest to you if you’re an O2 customer.
The network uses the index to set its prices by adding an extra 3.9% to whatever the rate of RPI announced in February is.
Other firms have already revealed how much phone and broadband bills will increase by from April.
BT, EE and Vodafone are hiking prices by as much as 9.3% in April – that amounts to as much as £74 extra each year.
Those firms work out their prices by adding 3.9% to January’s Consumer Price Index (CPI).
CPI is a measure of inflation, and it hit 5.4% earlier this month.
Loan misselling deadline – February 28
Consumers who were mis-sold loans by Satsuma or Provident have until the end of the month to file a compensation claim.
More than four million payday and doorstep loan customers could be eligible for a refund – even if they’ve already paid it back.
Some doorstep loans from Provident and Greenwood, payday loans given by Satsuma and guarantor loans from Glo were mis-sold to cash-strapped borrowers who couldn’t afford them.
If you took out a loan with one of those companies between April 6, 2007 and December 17, 2020, you could get a pay out.
There’s just a few weeks left to claim a share of a £50million compensation pot as the application window will close at the end of February.
You’re unlikely to get back the full amount you’re owed – but your refund could still be worth hundreds of pounds.
Bad marks could also be wiped from your credit record, too.
Get your application in before 5pm on February 28.
Visit scheme.providentpersonalcredit.com or call 08000 568 93 to make a claim.
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