As October 2024 approaches, households across the UK will need to prepare for several important financial changes that could have far-reaching implications. These changes cover various areas, such as energy bills, mobile phone roaming charges, fraud protections, and crucial tax deadlines. While many of these adjustments relate to the Department for Work and Pensions (DWP), others will affect a broad range of individuals. Whether it’s a pensioner awaiting the Winter Fuel Payment or a self-employed individual preparing for the self-assessment tax deadline, staying informed about what’s to come is important.
With inflation continuing to pose challenges, managing the cost of living remains a struggle for millions of households. Changes like the increase in the energy price cap, alongside updates to government schemes such as the Warm Home Discount, may add further pressure to everyday finances. By being aware of these upcoming changes and understanding their possible effects, individuals can better prepare themselves.
DWP October Changes and Their Implementation Dates
| New Change | Implementation Date |
|---|---|
| Ofgem Energy Price Cap Increase | October 1, 2024 |
| Warm Home Discount Scheme | October 2024 |
| New Mobile Roaming Rules | October 1, 2024 |
| Self-Assessment Registration Deadline | October 5, 2024 |
| Royal Mail Stamp Price Increase | October 7, 2024 |
| New Bank Fraud Rules | October 7, 2024 |
| Inflation Data Release | October 16, 2024 |
| Labour Government’s First Budget | October 30, 2024 |
| Self-Assessment Paper Filing Deadline | October 31, 202 |
Ofgem Energy Price Cap Increase
The energy price cap is set to rise once again, leading to higher energy bills for most households. Starting on October 1, Ofgem, the UK’s energy regulator, will increase the price cap by 10%.
- The average annual energy bill for gas and electricity will increase by £149, from £1,568 to £1,717.
- For households using standard credit, the price cap will go up by £161, resulting in an annual bill of £1,829.
With the cost of living already squeezing many households, this rise in energy prices will likely push more people into financial hardship as the winter months approach. Households should take steps to review their energy usage and consider applying for financial assistance if eligible.
Warm Home Discount Scheme
As part of the government’s efforts to support low-income households with their energy bills, the Warm Home Discount Scheme will open again this October. Under this initiative, eligible households will receive a one-off discount of £150 on their electricity bill.
- The scheme is particularly aimed at those receiving certain DWP benefits or on a low income.
- The discount is applied directly to your energy bill, usually between October and March.
To find out if you qualify, check with your energy provider or the government’s website for details on eligibility and how to apply.
New Mobile Roaming Rules
With travel becoming more frequent again, new regulations regarding mobile phone roaming will come into effect on October 1. These rules, introduced by Ofcom, aim to protect consumers from unexpected roaming charges when they use their mobile phones abroad.
- Providers must notify customers when they start roaming.
- Consumers will receive clear, easy-to-access information about costs before using mobile services abroad.
This change ensures that holidaymakers are better informed about their mobile usage abroad and are not caught off guard by exorbitant bills when they return home.
Self-Assessment Registration Deadline
If you need to complete a self-assessment tax return for the tax year ending April 2024, you must register with HMRC by October 5, 2024.
- This applies to anyone who has income from self-employment, rental properties, or other sources of untaxed income.
- If you filed a return last year, you do not need to register again, but you should be aware of the need to complete your tax return before the deadline.
Failing to register for self-assessment could result in penalties, so make sure you meet the deadline.
Royal Mail Stamp Price Increase
Royal Mail has confirmed a significant increase in stamp prices starting on October 7. First-class stamps will rise by 22%, which could have a notable impact on regular mail users.
- If you buy stamps before October 7, you can still use them after the price hike.
- The increase is attributed to the rising costs of delivering letters and parcels across the UK.
Royal Mail has explained that, despite the increase, the cost of providing universal postal service remains financially burdensome due to declining mail volumes.
New Bank Fraud Rules
In a world-first move, the UK is introducing mandatory refunds for fraud victims, effective from October 7, 2024. The Payment Systems Regulator (PSR) has set a new cap on compensation for fraud victims at £85,000, which will cover more than 99% of claims.
- Previously, the proposed compensation limit was £415,000, but it has been reduced.
- This change aims to provide better protection for scam victims, ensuring they are reimbursed for fraudulent losses.
However, some consumer advocacy groups argue that reducing the compensation cap may weaken incentives for banks to invest in fraud prevention.
Inflation Data Release
The Office for National Statistics (ONS) will release its latest inflation data on October 16. Inflation measures the rate at which prices for goods and services are rising, and it has a direct impact on the cost of living.
- As of August 2024, inflation stood at 2.2%, but it could rise again in October.
- At its peak, inflation reached 11.1% in October 2022, driving significant increases in household expenses.
This data will be closely watched, as it may influence government policies on interest rates and benefits.
Labour Government’s First Budget
On October 30, Chancellor Rachel Reeves will deliver Labour’s first Budget since the party came to power. The Budget will outline the government’s financial plans, including potential tax changes, benefit adjustments, and spending cuts.
- Reeves has indicated that the Budget will involve “difficult decisions” to balance the UK’s finances.
- Expect updates on policies affecting income tax, benefits, and government spending.
This Budget is expected to set the tone for the next few years of financial governance.
Self-Assessment Paper Filing Deadline
For those who prefer to file their tax return via paper, the deadline for submitting self-assessment returns is midnight on October 31. This applies to the tax year that ended on April 5, 2024.
- Ensure your return reaches HMRC by this date to avoid penalties.
- If filing online, the deadline is extended to January 31, 2025.
Meeting the paper filing deadline requires accounting for preparation and postal delays, so don’t leave it until the last minute.