It’s now May, and with this month will come a series of important changes affecting DWP benefit payment dates, energy bills and other finances.
It’s important to check if any of your bills or payments will be affected so you can budget accordingly. One key addition in May will be the spring Cost of Living payment for millions of people who claim benefits.
Many will also see their first full month’s benefit payment with the new increased rates in-line with inflation, the MEN reports.
READ MORE: DWP pauses £301 cost of living payments in unexpected update
Meanwhile, announcements are expected on April’s inflation figure and whether the Bank of England will increase interest rates again.
Here is every financial date you should be aware of in May:
Throughout May: £301 Cost of Living Payment
Many DWP benefit claimants began receiving their first Cost of Living payment of the year in April. Payments of £301 for people on means-tested benefits are being made between April 25 and May 17.
Meanwhile, those receiving Tax Credits alone have had to wait until May. Tax Credit claimants who receive no other benefits will receive their Cost of Living payment from HM Revenue and Customs (HMRC) between May 2 and May 9.
The DWP says that all Cost of Living payments should have been made by May 17 – if you have not received it by this point it’s worth contacting the DWP.
Throughout May: First benefit payment with new rates
While benefits across the board saw an increase of 10.1% in April, many should expect to see their first full month’s payment of new support with the higher rate in May. Some could see an increase of nearly £100 to their benefit payments with the new rates.
May 1, May 8 and May 29
Throughout May, there will be three bank holidays, with an extra one will be observed this year to celebrate the King’s coronation. People who are due to receive benefit payments on these dates, which all fall on a Monday, will instead get it early on the prior Friday.
The upcoming bank holidays are for May 1, May 8, and May 29.
May 2: Tesco increases home delivery fee
Supermarket giant Tesco has announced it will increase the minimum spending limit for customers to be eligible for free home delivery online, as well as increasing the charge for those who don’t meet the limit. From May 2, shoppers will have to pay £5 for delivery if they don’t spend a minimum of £50.
If shoppers spend over £50, they will not have to pay the extra cost. The change will not affect click-and-collect orders with the minimum fee sticking to £25.
From May 2: HMRC to start sending out renewal packs to Tax Credit claimants
HMRC previously warned that millions of benefit claimants will need to take action to avoid losing their payments. Those who claim tax credits will receive a renewal pack from the government department starting from May 2.
Two types of renewal packs will be sent out, informing claimants which type of action they need to take. One renewal pack, which has a red line across the first page and says ‘reply now’, will require customers to confirm their circumstances to renew their tax credits.
Meanwhile, the other pack will have a black line across the first page and will state ‘check now’, meaning claimants will need to ensure their details are correct. If they’re not, the claimant will need to update their details in order to keep receiving their Tax Credits payments
May 11: Interest rates announcement
The Bank of England (BoE) will announce any changes it will make to interest rates on May 11. If the monetary policy committee decides to increase the base rate again, it will be the twelfth consecutive time it has done so. The BoE’s decision will factor in how best to drive down inflation. Currently, the base rate stands at 4.25%.
Economists have said that the base rate could be increased further in order to curb inflation following last month’s smaller-than-expected drop in CPI inflation. Last month, Deutsche Bank economists predicted rates were most likely to peak at 4.25%, but they have now suggested they will peak at 4.75%.
Meanwhile, economists at Investec said they are pricing in “75 basis points” of further increases by November, which would take rates to 5%.
May 19: Pension Credit deadline for nearly one million people
Pensioners across the country have until May 19 to see if they are eligible to receive Pension Credit and get some extra cash. If they backdate their claim, they could also qualify for the £301 Cost of Living payment.
It is believed that around 850,000 people are missing out on the essential benefit which acts as a top-up for pensioners’ weekly incomes.
May 24: New inflation figures released
On May 24, we should find out the Consumer Prices Index (CPI) inflation rate for April. Inflation is a measure of how fast prices are rising for shoppers across the country.
The Bank of England is meant to try to keep inflation as close to 2% as possible at all times, but the rate has soared in recent months amid the ongoing cost of living crisis. In March, inflation hit 10.1%, a slight fall from 10.4% in February, but still much higher than the 9.8% that experts had predicted.
Chief economist at the Office for National Statistics (ONS) Grant Fitzner said of the March figures: “Inflation eased slightly in March, but remains at a high level. The main drivers of the decline were motor fuel prices and heating oil costs, both of which fell after sharp rises at the same time last year. Clothing, furniture and household goods prices increased, but more slowly than a year ago.”
Economists believe inflation will drop more sharply from April amid a decline in energy prices, but we’ll have to wait until May 24 to find out whether the prediction is correct.
May 26: Ofgem price cap announcement
On May 26, Ofgem will announce the price cap for the period between July 1 and September 30, which could have a big impact on how much we pay for energy bills.
In recent months, the energy price guarantee (EPG) has protected Brits from sky-high energy prices by limiting the amount energy providers can charge per unit. The Ofgem price cap, which is set every three months, has been higher than the EPG, so Brits have been paying the lower rate.
For example, the EPG is currently at £2,500, while the Ofgem price cap is £3,280 – so the Ofgem price cap has been of little importance.
However, from July, the EPG will increase to £3,000, and the Ofgem price cap is predicted to fall below that. According to estimates, the price cap is likely to be just over £2,000 a year – but we’ll find out the exact amount on May 26.
If the Ofgem price cap is lower than the EPG, then that will be the amount that determines how much we pay for bills.
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