March 2025 will introduce several financial changes in the UK, impacting benefit recipients, taxpayers, and homeowners.
The Department for Work and Pensions (DWP) will adjust payment schedules and benefit schemes, while broader economic measures, including inflation updates, interest rate decisions, and tax revisions, will shape household finances.
Birmingham Mail reports that key deadlines will also affect stamp duty rates, Universal Credit migration, and fuel assistance payments.
Train Fare Increase From 2 March
Train fares will increase by 4.6% from 2 March, marking only the second time in 12 years that fares have risen above inflation. Additionally, most railcards will cost £5 more, reflecting an almost 17% increase.
The fare hike is set 1% above the retail price index (RPI) inflation recorded in July 2024, which stood at 3.6%, compared to the consumer prices index (CPI) inflation rate of 2.2%.
The Bank of England’s Monetary Policy Committee (MPC) will meet on 20 March to decide whether to adjust the base interest rate, which currently stands at 4.5% following a reduction in February.
The base rate affects borrowing costs, including mortgages, loans, and credit card interest rates, meaning any change could directly impact household finances.
Spring Budget announcement on 26 March
Chancellor Rachel Reeves will deliver the Spring Budget on 26 March, alongside an Economic and Fiscal Forecast by the Office for Budget Responsibility (OBR).
The Budget will outline potential tax and spending changes for the upcoming financial year, aiming to provide economic stability and clarity for businesses and households.
This will be the only major fiscal event of the year, following the government’s commitment to a single annual budget.
Inflation update on 26 March
The Office for National Statistics (ONS) will release updated inflation figures on 26 March. The most recent data showed inflation at 3%, the highest level in ten months, following a peak of 11.1% in October 2022. The new update will provide insights into cost of living trends and could influence future economic policy decisions.
End of the Household Support Fund on 31 March
The Household Support Fund, a government scheme providing financial aid for essentials such as food and energy bills, will conclude on 31 March 2025. The fund, which has been extended multiple times, has offered vital support to low-income households. Eligible recipients should ensure they claim assistance before the deadline.
Winter Fuel Payment claims deadline on 31 March
Those eligible for the Winter Fuel Payment must submit their claims by 31 March. This one-off payment, ranging from £200 to £300, is available to people born before 23 September 1958 to help cover winter heating costs.
Unlike previous years, the extra Pensioner Cost of Living Payment, provided in 2022 and 2023, will not continue in 2025.
Most eligible people will receive their payments in November or December, though those awaiting a decision on benefits such as Pension Credit may receive their payment later. If you have not received a letter but believe you qualify, it is advisable to check whether you need to make a claim.
Universal Credit migration deadline on 31 March
Recipients of five legacy benefits must transition to Universal Credit by 31 March to avoid losing their payments.
The affected benefits include Working Tax Credit, Child Tax Credit, Income-based Jobseeker’s Allowance, Income Support, and Housing Benefit for those under State Pension age. The final migration notices were sent out in December 2024, and from April 2025, these benefits will no longer be available.
Those who received a migration notice must complete their Universal Credit application before the deadline to ensure continued financial support.
Stamp duty deadline on 31 March
The stamp duty deadline on 31 March marks the final opportunity to complete property purchases before higher rates come into effect.
For Stamp Duty Land Tax (SDLT), the legal completion date determines the applicable rate, meaning that any transaction finalised on or after 1 April 2025 will face increased SDLT charges. This change will affect first-time buyers, home movers, and property investors, including second-home buyers.
Those planning to buy a property should ensure that their completion occurs before 1 April to potentially save on stamp duty costs.
DWP Payment Dates in March
DWP benefits payments will generally follow regular schedules, except in Northern Ireland, where two bank holidays on 17 and 18 March may affect processing.
For claimants in Northern Ireland, DWP payments will be issued on 14 March, the last working day before the holidays. In England, Scotland, and Wales, there are no bank holidays in March, meaning payments will remain on schedule.
With multiple financial changes on the horizon, recipients of benefits, taxpayers, and commuters should prepare accordingly.
Keeping track of deadlines and potential adjustments will help individuals and businesses navigate the evolving economic landscape.
