Some of the changes include benefit payments, tax, cost of living support and energy help
Several changes to personal finances are set to take effect in February 2025, impacting areas such as benefit payments, tax, and support for living and energy costs. Around 10 million state pensioners have had to cope without the Winter Fuel Payment during recent cold spells due to changes in Government eligibility rules.
In the October Budget, it was confirmed that 800,000 people on ESA will transition to Universal Credit by March 2026, two years earlier than initially planned. This process will be expedited with 63,000 letters sent to this group of claimants each month from February until the end of the year, reports Cambridgeshire Live.
Consequently, those who usually receive their Universal Credit on the 29th, 30th or 31st of the month should expect their payment earlier, on Friday, February 28. However, some claimants have reported that their benefits have previously been deposited on March 1 instead. The most recent inflation rate, announced for December 2024, stands at 2.5 per cent, a slight decrease from November's 2.6 per cent. This indicates a dip in the annual price increase of goods and services for December 2024 to 2.5 per cent, marking the first decline in three months.
Ofgem may also consider extending the current Supplier Bad Debt Allowance, a move that Cornwall Insight warns could add at least £20 to projections. Cost of living support continues Meanwhile, support measures to help manage the cost of living continue. The Department for Work and Pensions has announced that cost of living payments and other assistance from the Household Support Fund will continue until February.
Eligibility for the payment is now limited to pensioners on Pension Credit or those living in mixed-age households receiving other means-tested benefits. These include Universal Credit, Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance , Child Tax Credit and Working Tax Credit.
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