We’ve reached the finish line – seemingly the longest month in history has come to an end. January is gone!
However, as we move closer to February, there are a number of events and changes value knowing about. This can have an effect in your funds and the broader economy. It’s good to remain informed to avoid unpleasant shocks in the approaching weeks.
Here are six financial changes happening in February.
Announcement of the energy price cap
At the top of February, energy regulator Ofgem will announce a recent cap on energy prices. This can be announced on February 27pand can run from April to June this 12 months. While nothing has been confirmed yet, Ofgem’s chief executive Jonathan Brearley has hinted that the value cap could drop below £3,000.
If the energy ceiling falls below this amount, customers will only save a small amount due to the present government-set energy price guarantee. While the value cap for the common household can be lower than £3,000 a 12 months, energy bills will ultimately rely on consumption.
The water bill goes up
Nothing has been confirmed to date, nevertheless in 2022 Water UK announced how much water bills could increase this month. Of course, the quantity your bill will increase (or decrease in some areas!) will rely on your geographic location, current amount, and usage.
Different locations within the UK fall under different water corporations, and every company is accountable for setting bill prices in its area.
Passport renewal fees
From the start of February, the fees for passport renewal will increase – by as much as 9%! The Home Office said the brand new fees would help the system cover its costs through those that use it.
From Thursday, 2n/a In February 2023, it’s going to cost £82.50 to renew an adult passport, up from £75.50. The cost of a recent passport for a toddler can even rise by almost a fiver to £53.50.
The cost of applying for a recent passport through the post office can even increase. An adult will now spend £93, a rise of £8 from the previous £85. Passport applications for kids can even increase from £58.50 to £64.
For overseas standard paper applications, the fee for adults will increase from £95.50 to £104.50. Claims for kids can even increase, from £65.50 to £71.50.
Bank of England quarterly meeting
The Bank of England’s Monetary Policy Committee (MPC) meets quarterly to determine whether rates of interest should go up. The next meeting will happen in two days, February 2n/a.
If rates of interest rise again, the fee of the loan will grow to be costlier. This includes loans, bank cards and even costlier mortgage payments.
However, this will be excellent news for many who have savings. Saving rates will increase as banks proceed to supply the best rates of interest in years.
Changes to Universal Credit
If you might be getting Universal Credit, a vital change is being made. As a result, roughly 120,000 people using UC can be affected, so you should definitely take that into consideration!
The Administrative Earnings Threshold (AET) is rising. This means that folks must earn more to be relieved of the duty to search for or prepare for work.
Previously, UC households needed to earn the equivalent of 12 hours every week (on the National Living Wage). This meant that they didn’t have to fulfill certain requirements, including job searches.
Now the edge has increased from 12 hours to fifteen hours, meaning 120,000 more people can be forced to earn more with a view to be exempted from the necessities.
Household support
The culmination of the financial changes happening this month is the date of payment of the Household Support Fund. The Household Support Fund was launched in October 2022 to assist probably the most vulnerable Britons weather the fee of living crisis, especially through the winter months.
Vulnerable households are eligible for extra financial support under the scheme, but certain deadlines are approaching and eligible households are encouraged to act quickly.
Each council has a unique deadline so check together with your local authority when you are unsure. However, all councils have until March 31st 2023 for this financial support.
