SIX money changes are coming in February that could affect your finances.
From potential water bill rises to Household Support Fund deadlines- we’ve listed how your finances could be affected this month.
1
Do bear in mind that you may not be eligible for some support listed below – but everyone will be affected by at least one of next month’s money changes.
We explain all you need to know, and what it means for your money.
Water bill rise announcement
Households usually have to fork out for their water supply each April when companies put up bills.
Last year, Water UK announced how much water bills are set to rise by on February 4.
While nothing has been confirmed, it does mean we can expect an announcement at a similar time this year.
The exact amount your bill will rise from will depend on where you live, how much you’re charged and the rate it’s increasing by.
Different areas of the country have a water company assigned to them.
And that company is responsible for setting the costs of bills and the rises for residents.
Most read in Money
Unfortunately, you can’t simply switch to another one when you’re unhappy like you can with other utilities.
Energy price cap announcement
On Monday, February 27, regulator Ofgem will announce its new energy price cap, which will apply from April to June.
Jonathan Brearley, the boss of Ofgem, said the energy price cap may drop below £3,000.
If the price cap does fall for the average households, it would only save customers a small amount as they were set to pay £3,000 anyway under the Government’s price guarantee.
The exact amount your energy bills will rise by will depend entirely on your own usage – so if you use more than the average household, expect to pay more.
And while there’s nothing you can do top stop these costs form rising, there is support in the pipeline for hard-up households.
Bank of England meeting
The Bank of England’s Monetary Policy Committee (MPC) will meet twice every quarter to decide if interest rates need to rise.
The next meeting will take place on Thursday, February 2.
If the bank decides to raise interest rates further it will make the cost of borrowing, including loans, credit cards and mortgage repayments more expensive.
And four million mortgage holders are already set to see their monthly payments jump by the end of the 2023 when they move off cheap mortgage deals and are forced to refinance onto a higher rate.
However, savings rates will get a boost as banks continue to battle it out by offering market-leading interest rates.
Historically banks don’t rush to up their savings rates in line with the base rate of interest – however, more and more are battling it out on the high street to offer the best rates.
Here, we explain how you can find the best mortgage deals now now.
Household Support Fund deadlines
Thousands of struggling households are eligible for extra financial support through the Household Support Fund.
The scheme was launched in October last year to help Brits through the cost of living crisis.
But people may want to act quickly as some deadlines are fast approaching.
For example, applications will close to eligible households in Leicester in February.
You could get help with food and energy bills, as well as essential kitchen equipment and support with housing costs.
Bedford Borough Council is giving households until February 28 to apply for the fund.
Your local council will set out their own deadline and criteria.
But the deadline for all councils to hand out the cash is March, 31 2023.
To find out what your local council is offering, and when its deadline for applications is, you should contact the authority directly.
If you don’t know who your local council is, you can find out by using this tool on the government’s website.
Meanwhile, we’ve listed all the bill hikes coming this year including council tax and energy bills.
Universal Credit changes
If you receive Universal Credit, there’s a major change coming to take note of.
The Administrative Earnings Threshold (AET) is increasing, which means roughly 120,000 on the benefit will be impacted.
The change means you will have to look for or prepare for work if you want to carry on receiving help.
Previously, households on Universal Credit had to earn the equivalent of 12 hours pay a week, at the National Living Wage, to not have to meet certain requirements.
These included having to look for more work or preparing for more work.
But from now, the 12 hour threshold has increased to 15, thrusting roughly 120,000 people into having to earn more to be exempt from the requirements.
You can read more about the change here.
Passport fees
From the start of February, passport renewal fees will go up by 9%.
Instead of paying £75.50 to renew an expired passport, it will cost £82.50 from Thursday, February 2.
Getting new passports for children will also increase from £49 to £53.50.
To get a new passport by applying via a form through the Post Office, prices will go from £85 now to £93 and £58.50 to £64 for children.
Overseas standard paper applications will increase from £95.50 to £104.50 for adults and £65.50 to £71.50 for children
The Home Office says the new fees will help “move towards a system that meets its costs through those who use it”.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
