8 money changes coming from TODAY in February 2024

January is (finally) almost over – here are all the changes you can expect to see in February, from government schemes to reduced bills payments

January is famously a tight month: 31 days of scrimping and saving after an expensive festive period.

But after a month of saving those pennies is now over, we can today enter into February with a brand new slate and some (mainly) good money news.

This month eight million Brits will receive cost of living payments worth £299, following previous DWP grants that have provided a lifeline for many amid the cost of living crisis.

Others will benefit from 'free council tax cash-back in February, plus energy bill payment changes due to the energy price cap review.

But it's not all good news. Here's what to expect this month...

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1. The cost of living payment will be paid within days

The third and final DWP Cost of Living payment worth £299 is soon to be issued.

Cost of Living payments are cash grants offered to households on certain benefits including Universal Credit and tax credits.

More than 8 million households are expected to get the cash boost to help with the rising costs of food, energy bills and other essentials.

• Those on means-tested benefits (such as Universal Credit) will receive their payment via the DWP between 6 February and 22 February.
• Anyone who claims Tax Credits and no other low-income benefit will get the £299 in their accounts between 16 February and 22 February. These will be paid by HMRC.

This follows two earlier cost of living payments in the tax year 2023/24, worth £301 and £301. In 2022 there were an additional two payments that total £650.

2. Council tax changes are soon to be announced

Council tax will be rising again from the next tax year in April for some areas, and the exact amounts are set to be announced in February.

This tax year, council tax increased by 5% or 15% in some areas.

Areas expected to be affected are:

• Teignbridge, Devon
• Suffolk County Council
• Dorset Council
• Buckinghamshire Council
• Southend City Council
• Newport City Council

However – other areas will be better off, and will actually get a break from council tax in February and March. This is because the way the bill works, most councils only charge households for 10 months out of 12.

Hyndburn Borough Council, in Lancashire, is one council that offers this.

It explained: 'A standard Council Tax bill is payable over 10 months from April to January, usually on the first of each month (other dates are available by Direct Debit include the 10th, 20th and 28th).

'This gives people two months off paying Council Tax in February and March, sometimes referred to as "free months".'

3. National Insurance changes

In his Autumn Statement, the Chancellor announced that Brits will be paying less National Insurance from January, cutting employee National Insurance Class 1 contributions from 12% to 10%.

This means over the course of the year, someone earning £35,000 will save over £450.

Most people will see those changes in their pay cheque for the first time in February.

4. You could be eligible for a cold weather payment

Cold Weather Payments are payments made to low-income households who experience particularly chilly temperatures in their area.

And as February is typically the coldest month of the year, these payments can be expected.

For those living in England and Wales, money is paid out to families when the weather drops below 0º for seven days in a row, to help them meet the extra costs of energy bills.

Eligible households will get a payment of £25 for every 7 days of very cold weather (0°C or below) between 1 November 2023 and 31 March 2024.

You'll need to be claiming certain benefits to get the help including:

• Pension Credit
• Income Support
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance
• Universal Credit
• Support for Mortgage Interest (SMI)

5. The last day to claim a warm home discount

Millions of low-income households with high energy costs and those who get the Guarantee Credit element of Pension Credit will receive a warm home discount over the winter.

The discount is a one-off payment worth £150 that is taken off your energy bills and is available from October to March

If you qualify, you'll automatically receive a discount from your electricity energy supplier. In some circumstances, this can also apply to gas suppliers.

All eligible households will get a letter informing them if they're eligible in January 2024.

If you think you're eligible for the help, but don't receive the letter, you should contact the DWP by 29 February 2024.

6. The energy price cap will be reviewed

The energy price cap limits how much energy companies can charge their customers based on average use.

On 23 February, the latest adjustment will be revealed which will tell customers how much they will be paying from 1 April.

Cornwall insight predicts it will fall, meaning people would be paying less for their energy bills. This follows the previous change which saw it rise 5% in January.

7. Interest rates could change

The Bank of England will announce further interest rates changes on 1 February and it is expected that the rates should stay the same.

If interest rates rise, however, this will mean mortgage bills will increase, as will the cost of borrowing through loans, credit cards and overdrafts, while rates on savings accounts could increase too.

8. Get the winter fuel payment

Most people will have already received their Winter Fuel Payment but some are yet to claim the help, and are encouraged to claim this month, with the deadline fast approaching.

The Winter Fuel Payment is a payment worth £300, depending on your living circumstances, but the government is topping this up with an extra £300 pensioner Cost of Living payment, meaning some families could get £600 worth of help in order to help with the extra costs associated with the winter period.

This help is issued to those who were born before September 25, 1957 and spent at least one day living in the UK between September 18 to September 24, 2023.

If you do not claim certain benefits and you haven't claimed the winter fuel payment in previous years, you will need to apply before 31 March 2024.

For application information, visit the government website here.

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