As August winds down, the dawn of September brings a raft of financial changes that could soon affect your pocket. Some alterations could significantly impact your finances.
Parents are in for a treat with a £7,500 boost, while bank customers may face some challenges. These shifts precede Labour’s Chancellor Rachel Reeves’ October Budget, as she reportedly considers a new tax raid to fill a £20 billion budget deficit.
Reeves might prolong the freeze on income tax thresholds, potentially pushing individuals into higher brackets if salaries rise – a phenomenon known as fiscal drag. By freezing these thresholds instead of aligning them with living costs, workers could face a stealth tax on their earnings.
We’ve compiled all the crucial dates you need to know to see if you’ll be affected:
September 1 – Childcare boost for parents, reports the Express. From this date, parents with children aged between nine months and four years old will be eligible for 30 hours of free childcare per week, an increase from the current 15-hour threshold.
To qualify for free childcare, you must earn the equivalent of the national minimum wage for 16 hours a week on average, but less than £100,000 a year.
You must submit your application by August 31 if you would like to receive the funding by the start of the 2025/26 academic year.
September 1 – First Direct discontinues paper savings account statements. First Direct is a digital bank with more than 1.9 million UK customers.
It will soon make a major change to its savings accounts. From September 1, First Direct account holders will no longer receive paper savings account statements in the post.
As an alternative, customers can view, download and print their statements using the bank’s app or online banking.
September 1 – High street bank closures. NatWest is set to close 26 bank branches next month, starting from September 1, including a branch in Cwmbran. Meanwhile, Halifax will shut 13 branches and Lloyds will close one branch.
Bank branches continue to shut down at a rapid pace with hundreds already closing this year and more expected in the coming months.
September 15 – Winter Fuel Payment claim date.
The majority of people who are due a Winter Fuel Payment will receive the cash, worth up to £300, automatically – but some people will need to apply.
If you do need to claim, you can apply by post from September 15, or by phone from October 15. Your eligibility will be based on your age by the end of the qualifying week.
September 17 – inflation. The Office for National Statistics will release August’s rate of inflation on this date. Inflation is a measure of how prices have changed over time.
This comes as inflation has been gradually increasing, hitting the highest level in over 18 months in July. In the latest update from the ONS, it was revealed that inflation has risen to 3.8 per cent. Inflation peaked at 11.1 per cent in October 2022.
On September 18, the Bank of England will announce its next interest rate decision. The base rate is what the Bank of England charges other banks and lenders – this then affects how much it costs you to borrow money.
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