A range of financial changes is set to impact millions of households this October, coinciding with the start of winter and the seasonal expenses coming with it.
October Money Changes: Millions of Households Warned to Prepare for Key Dates
By Lydia Amazouz
Published on 23 September 2024 11:41
A variety of money changes are taking place since October, affecting the budgets of millions of households. It can be tricky to stay on top of what's happening, who qualifies, and when they will receive support.
Major Financial Changes to Expect in October
With winter approaching, the government will begin to provide assistance to the poorest households. However, changes elsewhere will cause people to lose money, forcing families to cut their budgets just as they turn on the heating and prepare for Christmas, the most financially demanding period of the year.
Some financial changes will affect households with low earnings, such as those receiving benefits, but others would affect seniors. Here's a glimpse of the changes that will take place in the upcoming weeks as reported by BirminghamLive.
Cost of living payments
Local governments will make cost-of-living payments by means of the Household Support Fund (HSF). The government is funding the pool of cash, which has been extended into the winter.
Some municipalities may begin raising donations in October, while others may do so closer to Christmas. Households should visit their local government's cost of living support website online for more information.
That is where people can submit applications once the fund is open. Applicants must often demonstrate financial hardship and an inability to purchase necessities such as food, gas, and electricity.
Energy Prices
Energy prices are set to rise again in October, dealing another setback to millions of homes. Ofgem, the energy regulator, has raised the Energy Price Cap, causing typical bills to jump by £149 per year.
The velocity at which households feel the effects of the hike depends on the way they pay their expenses. Direct debit clients may not pay extra immediately, but providers are determined to raise costs in the future.
Winter Fuel Payments
Winter Fuel Payments of up to £300 were once paid to all seniors. However, they are currently being phased out for everyone except the poorest.
This year, only Pension Credit and other benefits recipients will be eligible for assistance. Charities worry that it will leave almost two million retirees who fall just short of the qualifying criterion having difficulties to become eligible by this winter.
As if this wasn't bad enough, hundreds of thousands of pensioners who are eligible do not claim Pension Credit, which means they will miss out on winter heating payments.
Warm Home Discount
The Warm Home Discount helps some of the most impoverished retirees and households, and it will relaunch in October. It takes £150 off bills once just throughout the winter.
This can occur at any moment between October and March, and it is up to energy providers to determine when to apply it. Pensioners who get the Pension Credit Guarantee Credit, as well as those people receiving benefits such as Universal Credit, are eligible if they have high energy bills. This will be decided by the energy companies. Those that qualify will receive letters.