8 money changes coming in October – from Winter Fuel Payments to bills | Personal Finance | Finance

Households across the UK could benefit from preparing for eight key money changes coming into force this month, with extra cash available for some whilst others are advised to tighten their belts amid bill increases. In a crucial change, energy bills are set to rise at the start of October, although a scheme handing some Brits £150 off their electricity costs will also reopen for those eligible.

The Winter Fuel Payments phone line will also be available for the duration of the month before the recently-restored scheme appears in bank accounts from November.

The self-assessment tax register deadline is also on the horizon for anyone who is self-employed. Keep reading for an oversight of the key changes you should be aware of this month, and how best to make use of them or mitigate their impact.

The Ofgem energy price cap rose from £1,720 a year to £1,755 a year on October 1. The new cap, which relates to the amount a typical dual fuel household paying by direct debit can expect to spend on energy, will remain in place until December 31.

The cap isn’t a total cap on energy costs, however, since bills are based on individual gas and electricity usage. Instead, it limits the amount people have to pay per unit of gas and electricity and through standing charges, which are fixed daily amounts set by energy networks.

Ofgem changes the price cap for households in England, Scotland and Wales every three months, largely based on the cost of energy on wholesale markets. Those impacted by the 2% rise could be eligible for the Warm Home Discount, which we dive into deeper below.

Self-employed Brits will have to register with HMRC for their self-assessment tax returns by October 5 for the 2024/25 tax year. Those required to complete tax returns can check their individual situation on GOV.UK but it is usually required for people whose income hasn’t had tax automatically deducted, or who have earned over £1,000 outside their normal employment which hasn’t been subject to tax.

The online self-assessment deadline itself is not until January 31, but those who miss the October 5 deadline could receive a ‘failure to notify’ penalty from HMRC, which is usually a percentage of the tax they owe and can rise depending on how late they register.

Winter Fuel Payment phone lines will open on October 13, enabling those eligible to register over the phone for the sums of up to £300. While most people who receive the cash do so automatically, anyone who has deferred their State Pension since receiving the last Winter Fuel Payment will need to call the hotline to put in another claim.

Around nine million pensioners are set to receive the payments between November and December after a U-turn of the government’s plans to tighten eligibility for the allowance. Recipients include anyone who was over State Pension age on September 15 with an income of under £35,000 a year.

The latest inflation data from the Office for National Statistics (ONS) will be published on October 2, showing how prices have changed over time. The latest figures showed that inflation held steady at 3.8% in August. The highest spike in recent memory was when it rose to 11.1% in October 2022.

It comes ahead of Chancellor Rachel Reeves’ autumn budget in November, where she is expected to mount new tax rises. Figures released by the ONS in September showed higher-than-expected borrowing last month, at £18 billion, with debt interest also rising due to changes in the Retail Prices Index on inflation-linked debt. Ms Reeves has come under mounting pressure in recent weeks to consider tax hikes as she tries to plug a black hole in the nation’s finances, at the risk of breaking her self-imposed fiscal rules.

While those submitting self-assessment tax returns online have until January 31 to do so, the deadline for submitting it by post is October 31. Brits who miss the deadline could be charged a late filing penalty of £100.

The penalties will continue to mount by £10 per day if the forms still haven’t been submitted after three months, with daily costs of £10 per day up to a maximum of £900. After six months, a further penalty of 5% of the tax due, or £300, depending on which is greater, can be applied in a process that repeats after 12 months.

The deadline for paying any taxes owed is also January 31, 2026.

The Warm Home Discount is available to households struggling to pay their energy bills and offers £150 relief for those eligible.

The government expanded the number of people who qualify for the financial help this year through removing the « hard to heat » eligibility criteria, with it said would hand a total of 6.1 million households the discount.

Those entitled to the pay-out will receive a letter in the post from October 20 and is available to homes where someone was claiming a qualifying benefit on August 24, including Pension or Universal Credit.

The scheme sees the £150 paid directly to energy providers rather than into bank accounts.

A number of banks and building socieities are slashing interest rates this month in a blow to UK savers, after the Bank of England’s decision to leave central saving rates unchanged at 4% in September.

Nationwide cut interest rates on 24 savings accounts on October 1, including the Flex Instant Saver, which changed from 2.75% to 2.5%, and the Reward Saver, which changed from 3.2% to 3%.

TSB also dropped rates on seven accounts on the same day, and Natwest and the Royal Bank of Scotland will drop rates on four accounts on October 13, with some falling to as low as 1.06%.

HSBC will also lower rates on five accounts on October 20, Co-op bank will cut rates on six accounts on October 22, and Barclays will do the same to four accounts on October 30.

The UK high street will be hit by another round of bank closures this month amid the growing move from in-person to online banking, with NatWest, Halifax and Lloyds shutting a total of 110 sites across the nation.

NatWest is set to shut 23 banks and 28 mobile branches in October, with Halifax axing 27 banks and Lloyds 32. While the trend has generated backlash – with some arguing that the disappearance of over half of UK banks since 2015 disadvantages older customers – firms have insisted that it reflects a change in customer habits.

Those impacted by the closures have been encouraged to visit Post Office branches where they will still be able to access basic banking services – although they won’t be able to open new accounts or take out loans or mortgages.