MILLIONS of households will need to make a note of seven major money changes coming up in the calendar next month.
From council tax rises to new cost of living payments worth £299, lots is happening in February.
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The third instalment of the £900 cost of living payment is set to hit bank accounts for households on certain benefits.
But those on one specific benefit will have to wait a bit longer before it hits their bank accounts.
Plus local authorities will begin to announce how much council tax will rise.
The Bank of England will meet at the beginning of the month to determine the UK’s interest rate, in a move that could affect thousands of homeowners and savers.
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The changes are all important to know so you can plan ahead and avoid being caught off guard.
We’ve explained everything that’s happening below.
1. Interest rate changes – February 1
The Bank of England announced this week it would be holding interest rates at 5.25% for the fourth time in a row.
This came as a relief for millions of homeowners worried that an increase would see them paying more on their mortgage.
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It was also good news for people looking to borrow money, as the cost of borrowing through loans, credit cards and overdrafts can go up if the base rate is increased.
Savers are the main group to benefit from rate rises as banks tend to battle it out by offering market-leading rates.
However, this means that because the rate will not change banks will likely take advantage of this and keep their rates the same too.
We explain more about what a pause in the base rate means for your money.
2. Amazon Prime – February 5
Amazon Prime is set to make some major changes from next week and it is likely to upset viewers.
As of February 5, viewers will have to pay an extra £2.99 each month if they don’t want ads interrupting their favourite shows and movies.
Amazon says the move will allow the company to “continue investing in compelling content and keep increasing that investment over a long period of time”
The change has already been implemented in the US and has not gone down well with users of the platform.
3. Cost of living payment – February 6
Households on certain benefits, including Universal Credit, will receive the £299 payment directly into their bank accounts between February 6 and February 22.
Those eligible for the tax-free payment won’t have to do anything as it will be made automatically.
The full list of benefits that qualify people for the payment is:
- Universal Credit
- Income-based jobseekers allowance
- Income-related employment and support allowance
- Income support
- Working tax credit
- Child tax credit
- Pension credit
You need to have been entitled to a payment of any of the qualifying benefits above between November 13 and December 12 to be eligible for the free cash.
If you were later found between the same dates you will also be eligible for the payment too.
Households on tax credits only will receive their payment from HMRC after the others are paid by the DWP.
This payment will be made between February 16 and February 22.
This is to ensure that those on other benefits and tax credits will not get the payment twice.
4. Sky Mobile price hikes – February 14
The majority of Sky Mobile’s phone tariffs will soon increase, so you will likely see a rise.
From February 14, bills for Sky’s the average out-of-contract customer will see their monthly bill go up by 3%.
The majority of our data tariffs of 20GB and below are increasing by £1.
Tariffs of 25GB or above are increasing by £2, while some customers will see a £3 increase.
While this may seem small it means customers face an annual rise of between £12 and £36.
Around 71% of out-of-contract customers will be affected by the rise, according to Sky.
Most mobile phone providers increase their prices slightly at the start of the year, although this is the second time in six years that Sky has raised the prices on any of its mobile plans.
The Sun has put together a guide to the exact time to haggle or switch to cut your bills.
5. Energy price cap review – February 23
The energy price cap limits the amount an energy company can charge you for a default tariff, based on average use.
It is reviewed by the regulator Ofgem every three months and is adjusted to reflect the wholesale cost of energy.
The next adjustment will be announced on February 23 and will come into effect on April 1.
The cap limits the unit price of gas and electricity suppliers can charge.
Experts believe the price cap will fall by the equivalent of more than £300 a year from April.
Cornwall Insight predicts that the price cap will fall from the current £1,928 to £1,620 from April – £40 lower than it predicted in December.
6. Last day to claim Warm Home Discount – February 29
The Warm Home Discount scheme is paid to millions of low-income households each winter to help with increased heating costs.
The money isn’t paid to you but is applied as a credit on your bill.
In the vast majority of cases, it’s automatic, but there are thousands of households who have to apply for the rebate, due to the way the scheme operates.
The deadline for this is February 29.
You can find out more about the warm home discount scheme in our guide including how to apply and the eligibility criteria.
7. Tesco Clubcard points – February 29
Millions of Tesco shoppers have just weeks left to use up £18million worth of Clubcard vouchers or could risk losing them for good.
Customers can use the Clubcard vouchers, which were first issued in February 2022 and will expire at the end of this month, to bring down the cost of their weekly shop, pay for fuel or pick up a great new deal with Tesco Mobile.
Clubcard vouchers can be used in-store and online to save money on their Tesco shop.
We explain how the Tesco Clubcard scheme works and what you can use your points on.
8. National Insurance changes – February
The main 12% rate of employee National Insurance Class 1 contributions was cut to 10% on January 6, but most people will see the change take effect for the first time in their February paycheck.
Jeremy Hunt announced the change as part of the Autumn Statement.
The change will help 27million people and it means that someone earning an average salary of £35,000 will save over £450.
It is also good news for millions of self-employed workers who will also get to keep more of their hard-earned cash.
To see how much you’re set to save, have a look at our story.
9. Council tax changes – February
Council tax is once again expected to rise from April 1.
But the exact amount payments will rise by is set to be announced in February.
The payment is an annual fee you pay to your local council.
The cost is set by your council and goes towards funding local services.
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This year saw the majority of local authorities hike rates by 5% – though in some cases bills went up by 15%.
Households in six council areas across the UK may be forced to pay more in council tax from this April.
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