All December’s key money dates

December can be a tough month for household finances. Our outgoings tend to be much higher compared to other months, combined with an early pay packet that you need to make stretch until the end of January.

With that in mind, we’ve pulled together all the key December money dates to ensure you’re ahead of the game when it comes to budgeting for the month ahead.

1 December - DWP Christmas Bonus

Millions of benefit claimants will get a £10 Christmas bonus from the Department for Work and Pensions (DWP) to help with the cost of the festive period.

The bonus payment is due to land in bank accounts during the first week of December.

It will be paid to those claiming certain benefits, including pension credit, personal independence payment (PIP), and carer’s allowance. It’s worth noting the £10 Christmas bonus isn’t paid to those receiving universal credit unless you also receive another qualifying benefit. Find out if you qualify here.

18 December – latest inflation figures

The Consumer Prices Index for November will be released on 18 December.

Last month it showed that inflation rose to 2.3% in October from 1.7% the month before. This is above the Bank of England’s target rate of 2%.

Inflation measures how much the prices of goods and services have increased over time.

The BoE predicts inflation will rise again to 2.75% in December because of increases in energy prices before starting to fall again in the New Year.

19 December – interest rate changes?

The Bank of England will meet on 19 December to review whether to change the base rate, which helps to decide interest rates set by lenders and savings providers.

The Bank’s Monetary Policy Committee meets eight times a year to review the rate and, depending on key factors, decides whether to increase, decrease, or keep it static.

When it last met on 4 November, the committee chose to cut interest rates by 0.24 percentage points to 4.75%.

Earlier this year, economists predicted that rates would fall further in December. But this is now unlikely, with inflation rising to 2.3% last month, above the Bank’s 2% target.

Homeowners may now have to wait until February at the earliest for further interest rate relief.

21 December – pension credit deadline

Pension credit was front page news this year because of the government’s cuts to winter fuel allowance.

The winter fuel allowance, worth up to £300, was previously paid to everyone of pension age. The government chose to means-test it, meaning that from this winter, only those claiming pension credit will receive the payment.

As a result, millions of pensioners might miss out on the payment this winter unless they qualify for pension credit.

The deadline to apply for pension credit and still qualify for a 2024 to 2025 winter fuel payment is 21 December.

You can apply online for pension credit here. You’ll need your National Insurance number, information about your income, and any savings and investments you have to hand.

Pension credit is worth £3,900 a year and is a gateway benefit that can lead to other financial support, such as help with housing costs, council tax reductions, and a free TV license.

24 & 31 December – early payment dates

If you receive benefits, tax credit or the state pension and are due to be paid on Christmas Day, Boxing Day or New Year’s Day, you will get your money a day earlier.

The DWP has confirmed all other payment dates over the festive period won’t be affected.

31 December - £2 bus fare cap ends

The £2 cap on single-journey bus fares will increase by £1 to £3 from 1 January 2025. The £2 cap applies to adult single bus fares in England, excluding London, and was introduced in January 2023 to help with the cost-of-living crisis.

Several cities have opted out of increasing the cap to £3, including Leeds, Liverpool, and Manchester, where it’ll remain at £2 until at least March 2025.