SUMMER has begun and that means we’re over half way through 2022.
But there’s still plenty of time left for some big money and payment changes on their way which you should note.
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These dates give you the opportunity to claim back spare pennies and start saving up.
Whilst it may feel like a while away but we explain why now is the perfect time to start saving up for Christmas.
If you have children this may be even more important as soon Santa will be packing up his sleigh so parents need to be prepared.
We’ve compiled a list of the important dates to note in your calendar.
First cost of living payment
Millions of Brits will receive the first part of the £650 cost of living payment from this week.
It comes as part of the Government’s support package to help will bills and essentials during the cost of living crisis.
Eight million people receiving Universal Credit and other benefits will see the cash land in their bank account between 14 July and the end of the month.
It’s an easy payment to spot as it will be marked by the special code DWP Cost of living.
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The first payment is worth £326 whilst the second is £324.
The date when we can expect the second payment to land in our bank account has yet to be announced.
To be eligible for the payment you must receive:
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
- Universal Credit
You can read more about the cost of living package here.
You can also read about how to make sure you get all of the payments you’re entitled to here.
Tax credits deadline
Millions have been warned they could miss out on thousands this year if they don’t renew their tax credits by July 31.
There are two types of tax credit working tax and child tax credit.
Universal Credit has replaced both of these benefits, but many haven’t transitioned over yet.
The amount you receive depends on your circumstances however it could be worth up £3,545 for child tax credit and £3,345 for working.
If you don’t renew your tax credit, the benefit could be stopped and you’ll miss out. In some cases, you may even have to pay back the money so you must ensure you’ve renewed your claim.
You’ll have been sent a renewal pack to start the process.
If you want to find out more about tax credits and how to apply then you can read more here.
School uniform grant
Thousands of families may be entitled to the school uniform grant.
Local councils across the UK offer grants to households who may be struggling to buy their child the necessary clothing items they need.
However, this depends on the country you live in, England, Scotland, Wales or Northern Ireland, and you may not be entitled to any money at all.
The amount you receive and when you have to apply will also change according to the area you live in.
To be eligible for the grant you receive benefits such as Universal Credit, Jobseekers allowance and child tax credits.
If your child receives a free school meal, it’s likely they’ll also be entitled to a free uniform.
We’ve written about how to claim and who’s eligible for the grant here.
Mortgage rule change
In August, a big change is coming concerning mortgages.
An affordability test for mortgage lending will be dropped in August the Bank of England has confirmed.
The withdrawal will happen from August 1.
Mortgage lenders must follow a set of rules on affordability which have been set by the Bank.
However, these will be dropped after it was consulted on the potential impacts ditching it could have on mortgage lending.
According to Rightmove, the average house price is £368,614, which is a record high.
The test determined the level of monthly repayments you can afford. Dropping the test means it will be easier for buyers to apply for a mortgage.
If you’re wondering about how to apply for a mortgage and how to improve your chances of getting it accepted, you can read The Sun’s article about them here.
£150 disability payment
If you have a disability you may be entitled to an extra £150 from the cost of living payment support package.
This payment is exempt from tax and won’t affect any existing benefit awards.
The money will be paid directly into your bank account.
In order to be eligible for the payment you must be receiving:
- Disability Living Allowance
- Personal Independence Payment
- Attendance Allowance
- Scottish Disability Benefits
- Armed Forced Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
You can read more about the money you may be entitled to receive here.
Paper £20 and £50 withdrawn
Paper notes are getting rarer now that they’re being replaced with machine washable plastic notes.
Like the £5 and £10 notes, the £20 and £50 will no longer be in circulation as of September and won’t be accepted in shops, restaurants or any establishment that accepts cash.
The new £20 began circulating in 2020, whilst the new £50 entered circulation last year.
Before the change comes into effect, you’ll need to deposit or spend any paper notes before they’re no longer legal tender.
You can read more about the changes to these notes here.
£400 energy bill discount
In October, every household will benefit from a £400 energy bill discount.
Payments will be made in instalments over a period of six months.
The payments replace a previous plan to give a £200 energy rebate, which households would pay back. This payment is a grant meaning you won’t have to pay it back.
If you pay your energy bill via direct debit then you should see the money put into your bank account.
If you pay through a pre-payment meter then you’ll receive a voucher or the money will be added to the meter.
You can read more about the discount here.
What is the energy price cap?
Energy prices have soared after a price cap increase.
It’s currently priced at £1,971 per year for the average household. However, it’s estimated that will increase to £2,800 in October.
The current rates are set at:
7.p per killowatt hour (p/kWh) for gas
28p/kWh for electricity
A standing charge of 27p per day for gas
A standing charge of 45p per day for electricity
The cap sets a maximum figure a customer can be charged on a variable dual-fuel rate.
This measures the typical usage of gas and electricity over a six-month period.
It was originally set up in January 2019 to try and limit providers on how much they can charge on default energy bills meaning households couldn’t be unfairly charged.
You can read more about this here.
£300 cost of living payment for pensioners
Pensioners will receive an extra £300 as part of the cost of living package.
The payment will arrive in November to help pay for bills and other essentials.
In order to eligible you must be receiving Pension Credit.
It’s been estimated up to a million eligible pensioners could be missing out on the benefit.
How much you’re entitled to depends on your circumstances including whether you have a partner, if you’re disabled or if you are caring for a child.
If you want to apply for pension credit then you must have reached State Pension Age, which is set at 66. You must also reside in England, Scotland or Wales.
Your household income is calculated when you apply. If you fall short of the threshold, a top-up amount will be awarded to you.
Your income includes:
- State pension
- Other pension
- Earnings from employment or self-employment
- most social security benefits, for example Carer’s Allowance
Your savings, providing its £10,000 or under, will not affect your pension credit.
You can apply four months before you reach State Pension age or at any time once reaching it but your application will be backdated by only three months.
You can apply online here.
You can find out more about the extra discount here.
Cold weather payments
You may be eligible for the £25 cold weather payment to help towards your energy bill costs this winter.
The payments begin in November and continue throughout the winter months, meaning you can receive the payment more than once.
To be eligible for the payment you must receive one of these benefits:
- Pension credit
- Income support
- Income-based jobseeker’s allowance
- Income-related employment and support allowance
- Universal Credit
- Support for mortgage interest
You may also need to meet one of these additional criteria’s:
- Have a disability of receive pension premium
- Have a child who is disabled
- Receive child tax credit that includes a disability or severe disability element
- Have a severe or enhanced disability premium
- Receive of a limited capability for work amount
- Have a child under five living with you
It’s automatically paid to anyone who is eligible for the payment, so no application process is necessary.
If you believe you may be eligible then you can tell your pension centre, Jobcentre Plus Office or call the Universal Credit helpline.
There may be other benefits you could be entitled to.
During the Cost of Living crisis former Chancellor Rishi Sunak announced a cost of living package to help pay for essentials and energy bills.
