MILLIONS will want to get clued up on these eight money changes happening in September that could affect your finances.
It’s a big month for your finances, from cost of living payments to the Household Support Fund deadline.
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We explain all you need to know and what it means for your money.
September 2 – millions claiming tax credits get £650 cost of living payment
Over one million families getting tax credits will get the first half of the £650 cost of living direct payment from September 2.
The first payment is worth £326, and those claiming working tax credits or child tax credits have had to wait longer than most for the cash.
Around seven million households on benefits like Universal Credit and pension credit started getting the first payment from July 14 – so should have the payment already.
But those claiming tax credits had to wait to avoid duplicate payments where people claim this, and another qualifying benefit – so will get theirs in days.
Most people will be paid by September 7, HMRC has said.
If you’re on tax credits, you don’t need to apply, you should get the payment automatically.
Cost of living payments are tax-free, do not count towards the benefit cap and do not affect the amount you usually get from benefits.
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September 5 – new Prime Minister revealed
Whoever will takeover as the new Prime Minister from Boris Johnson will no doubt make some changes that will affect your personal finances.
Rishi Sunak and Liz Truss are battling it out for the top dog position.
Mr Sunak has positioned himself as the economically cautious choice. He’s vowed not to make any tax cut pledges until inflation is dealt with.
While Ms Truss has pledged to reverse the National Insurance hike from day one in office and even introduce a fully costed budget.
Both will be under pressure to provide some relief to millions of households struggling to cope under mounting energy bills.
An emergency budget will be held this month where the new PM will outline their plan of action.
September 15 – Amazon Prime price hike
The price of Amazon Prime memberships is rising from £7.99 to £8.99 from September 15.
The rise will also increase the annual membership from £79 to £95 a year.
As households look at ways to lower costs due to a cost of living crisis, many will be tempted to cancel their contracts.
But Martin Lewis has revealed how to stall the rise by converting to an annual subscription – which would lock in the old price for next year, he said.
Switching to the annual membership before the price rise would save you £28.88 – paying the new £8.99 a month price tag would cost £107.88.
If you’re set on stopping your cobntract, you can cancel the service by going to your Amazon Prime Account page when logged into Amazon.
September 15 – Bank of England meeting and possible interest rate hike
There will be a Bank of England meeting on September 15 – and it could spell a possible interest rate hike.
Last In August, the BoE increased the base rate of interest by 0.5 percentage points to 1.75% – the biggest hike in 27 years.
Economists expect this could increase to as high as 2.25% in September.
Interest rates are being hiked to curb runaway inflation.
Another rate rise could have a significant impact on your finances – especially homeowners.
And anyone on a variable or tracker mortgage will be the first to feel the effects of any increase.
These mortgages are linked to the Bank’s base rate – so when it goes up, so do your monthly repayments.
There are around 1.9million homeowners with these mortgages.
September 20 – £150 cost of living payment for people with disabilities
Six million people claiming certain disability-related benefits will get a £150 cost of living payment from September 20.
However, most people will get their cash in the first two weeks of October.
You can get the cash if you claim one of the following:
- Disability Living Allowance
- Personal Independence Payment
- Attendance Allowance
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
- Adult Disability Payment (in Scotland)
- Child Disability Payment (in Scotland)
Claimants must have received, or begun an eventually successful claim for one of these benefits, as of May 25 this year to be eligible for the £150 payment.
The cash should be paid directly into the account where you receive your benefits payments.
The money is also exempt from tax and won’t count towards the benefit cap or impact existing benefit awards.
September 26 – hundreds of thousands to get extra £200 extra energy bill help
More than 400,000 households will get an extra £200 to help them pay for energy bills.
The Winter Fuel Support Scheme is open to households in Wales where at least one member is a recipient of the following working age means-tested benefits:
You can apply for the help when the scheme opens on September 26 – you’ll need personal details like your National Insurance number and bank details.
Your local authority will wire the money across to your bank account with the details you provided upon application.
September 30 – Old £20 and £50 notes no longer legal tender
Consumers have until September 30, 2022 to use paper £20 and £50 notes.
After this date, you will not be able to spend them.
The Bank of England has issued a reminder to anyone with forgotten banknotes in their wallet – it’s use it, or lose it.
It said anyone with paper notes should either spend them, or deposit them at a bank or Post Office before the deadline day.
These can be presented in person or sent by post (although you risk them getting lost) to: Dept Nex, Bank of England, Threadneedle Street, London EC2R 8AH.
You can find the full guidance on the Bank of England’s website.
The Bank is replacing old-style paper notes with polymer versions, which are more durable and difficult to counterfeit.
September 30 – Household Support Fund deadline
Councils have until September 30 to spend the funding dished out to them under the Household Support Fund.
Councils across the UK have been given a portion of the £1.5billion pot to help their residents.
You can find your local council using the government website, and ask what help is available where you live and who is eligible.
Each council decides what help to provide and in what form – some provide cash grants, while others provide vouchers or free school meals.
In some areas, the help is given automatically to those who meet certain criteria, while in other parts of the country you’ll need to apply.
You can get up to £300 to help with the cost of bills and essentials under the scheme.
Here’s four ways to save up to £2,375 to help cover energy bills this winter.
While hard-up parents can get up to £200 in cash support from their local council to put towards the cost of school uniform.
