Brits face higher broadband bills and train fares in March, while some will get early benefit payments. Next month sees a raft of new money changes and deadlines to be aware of that will likely affect your wallet.
As Spring gets underway, Chancellor Jeremy Hunt will also reveal his plans for the economy when he delivers his latest Budget. Reports suggest there could be some tax cuts on the way, but as usual, the Treasury is keeping tight-lipped on what is to come.
Meanwhile, the Bank of England will make another decision about interest rates following the release of the latest inflation figures. Several schemes aimed at helping vulnerable households through the cost of living crisis during winter are also coming to an end.
READ MORE: FREE scheme can save you cash on bills – but only 129 people in Greater Manchester have signed up
READ MORE: Martin Lewis issues ‘never’ warning to car owners amid ‘rocketing’ price hikes
Here’s our monthly round up of the key dates to be aware of next month.
Rail fair increase – March 3
On Sunday, train passengers face forking out more for their journeys as rail fares will be hiked by nearly 5 per cent.
The Department for Transport announced at the end of last year that regulated fares in England will increase by up to 4.9 per cent on March 3. Regulated fares include season tickets on most commuter journeys, some off-peak return tickets on long-distance routes and flexible tickets for travel around major cities.
The 4.9 per cent increase could add £190 to an annual season ticket from Woking to London, taking the cost from £3,880 to £4,070. It could also see flexi season tickets for travel between Liverpool and Manchester on two days per week over a year rising by £92.60 from £1,890 to £1,982.60.
Traditionally, the Retail Prices Index (RPI) measure of inflation for July is used to determine annual fare rises. This year, that figure was 9.0 per cent. Last year, the cap on fare increases was aligned with Britain’s average earnings growth for July 2022, which was 5.9 per cent.
At the time of the announcement in December, transport secretary Mark Harper said: “Having met our target of halving inflation across the economy, this is a significant intervention by the Government to cap the increase in rail fares below last year’s rise. Changed working patterns after the pandemic mean that our railways are still losing money and require significant subsidies, so this rise strikes a balance to keep our railways running, while not overburdening passengers.”
Pension Credit deadline for £299 cost of living bonus – March 5
Pensioners have until March 5 to check if they could be eligible for the £299 cost of living payment that was handed out in February.
The Department for Work and Pensions (DWP) said about 880,000 eligible UK households could secure the extra cash by applying for Pension Credit. The benefit averages more than £3,900 a year and aims to help low-income individuals who have reached state pension age with their day-to-day expenses, guaranteeing a minimum weekly income of £201.05 for single pensioners and £306.85 for couples.
As well as the financial boost to weekly income, claiming Pension Credit unlocks eligibility for the £299 cost of living payment. However, due to backdating rules, the claim must be made by March 5.
Minister for Pensions, Paul Maynard, said: “We are committed to ensuring every pensioner receives the financial support available to them. Anyone who is unsure whether they or a loved one is entitled to pension credit should quickly check using our online pension credit calculator – it’s never been easier. Not only could this secure an extra £3,900 every year and unlock a whole host of other support, if successfully claimed by 5 March a further £299 Cost of Living boost is up for grabs.”
The Spring Budget – March 6
Chancellor Jeremy Hunt will deliver his Spring Budget on March 6, outlining his latest plans for taxes and spending.
Mr Hunt has been facing increasing pressure from fellow Tories to make tax cuts ahead of the general election, which will likely take place later this year.
The chancellor has hinted that there will be tax cuts in the Budget, but has warned that he would only do it “in a way that was responsible”.
Reports suggest the chancellor could be considering a cut to income tax either by slashing the main 20 per cent rate or by raising the threshold at which tax is paid. A further cut to National Insurance could also be on the cards after it was cut by 2 per cent from 12 per cent in January. Other reports suggest he could announce a new duty on vaping.
Ring doorbell subscription increase – March 11
People with a Ring doorbell face a steep increase in subscription costs from the middle of the month.
Customers subscribed to Ring’s Protect Basic Plan have been informed that their subscription price will increase from £34.99 a year to £49.99 a year – a 42 per cent increase – from March 11.
Some criticised the price hike, stating that people are already struggling to afford the basics during the cost of living crisis, but Ring, which is owned by Amazon, said it believes it offers “some of the best value in the industry”.
A spokesperson for Amazon said: “Since Ring launched its Protect Basic Plan in 2015, we’ve regularly found ways to enhance the plan to give our customers more value. As we continue to invest in the services we offer, we are updating our Protect Basic plan pricing.
“Starting March 11, 2024, Ring Protect Basic will increase to £4.99/month. We believe that Ring Protect offers some of the best value in the industry.”
Latest inflation figures – March 20
The latest inflation figures for February will be revealed by the Office for National Statistics (ONS) on March 20.
In January, CPI inflation unexpectedly held steady at 4 per cent – lower than the 4.2 per cent that economists had forecast, but still double the Bank of England’s 2 per cent target.
Food prices dropped for the first time in almost two and a half years. The fall of 0.4 per cent was the first since September 2021, with the cost of bread and cereals, cream crackers and chocolate biscuits all dropping.
ONS chief economist Grant Fitzner said: “Inflation was unchanged in January, reflecting counteracting effects within the basket of goods and services. The price of gas and electricity rose at a higher rate than this time last year due to the increase in the energy price cap, while the cost of second-hand cars went up for the first time since May.
“Offsetting these, prices of furniture and household goods decreased by more than a year ago and food prices fell on the month for the first time in over two years. All of these factors combined resulted in no change to the headline rate this month.”
According to chancellor Jeremy Hunt, inflation is set to fall to the target rate of 2 per cent “in a matter of months”.
Bank of England interest rates decision – March 21
The Bank of England will make a decision about interest rates on March 21. It is widely expected that the Bank will keep rates unchanged for the fifth time in a row.
Interest rates are currently at 5.25 per cent – the highest levels in 16 years – after the Bank decided to hike rates 14 times in a row to try and drive down runaway inflation.
Most economists believe the Bank will look to cut interest rates sometime in the first half of this year. Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: “We continue to think that CPI outturns over the coming months will convince the (Bank’s Monetary Policy Committee) in the second quarter that monetary policy does not need to be quite as ‘restrictive’ as it is currently, though it looks like a toss-up whether the committee will opt to cut Bank rate for the first time in May or June.”
Fuel duty cut to end – March 23
On March 23, a 5p cut to fuel duty is due to come to an end.
Fuel duty is a government tax which makes up part of the price you pay for petrol and diesel. The rate has been frozen since January 2011. But on top of the long-standing freeze, a temporary 5p cut was implemented in 2022 after fuel prices soared to nearly £2 a litre on average.
The 5p cut is due to come to an end on March 23, but many are hoping the chancellor will extend the cut in the Spring Budget. Last year, Mr Hunt refused to commit to maintaining fuel duty at the current rate, saying he would “look at that decision again” in the run-up to the Budget.
However, according to the Institute for Government (IFG), fuel duty is the “most likely candidate for a tax cut” at this year’s Budget.
Bank Holiday benefit payments – March 29
There is a Bank Holiday at the end of March, which means some people may get their benefits early.
Easter weekend falls on the last weekend of March this year, which means Good Friday, March 29, and Easter Monday, April 1, will both be Bank Holidays.
People whose benefit payments are due to land on these days will usually see the money arrive in their account early – on the first working day before. For example, if you are due payment on March 29, you will likely be paid early on March 28 this year.
Broadband price hikes for some customers – March 31
Mobile and broadband costs will go up for many customers this spring, with the first increases being implemented from the end of March.
Most of the biggest firms hike their prices yearly in line with CPI (which was 4 per cent in December) or RPI (4.9 per cent in January) plus an additional 3 per cent, 3.7 per cent or 3.9 per cent. That means some customers will be seeing hikes of as much as 8.8 per cent.
BT, EE and Plusnet will all hike customer charges on March 31, while the majority of telecom giants will raise charges on April 1.
Ofcom is currently reviewing inflation-linked, mid-contract price rises but is yet to publish its final decision on its proposals to ban the practice.
You can find a full breakdown of price hikes for all the major broadband and mobile companies here.
Household Support Fund to end – March 31
The Household Support Fund (HSF) is due to come to an end at the end of March.
The HSF was set up to provide financial support for essentials such as food and bills to low-income families struggling during the cost of living crisis. The fund is divided up between local councils and it is up to each individual authority to decide how to administer the cash.
Councils have used the money to help support free meals for children outside of term time and fund food banks, as well as handing out one-off payments to the most vulnerable and assisting people with household bills.
Campaigners are hoping that the funding could be extended and are awaiting a decision from Mr Hunt in his spring statement. In the Commons earlier this month, work and pensions secretary Mel Stride confirmed that there was an “ongoing review” into the situation. However, if the fund is not extended, it will cease to exist after March 31.
End of Cold Weather Payments – March 31
Thousands of households in England and Wales have benefited from Cold Weather Payments over the winter months, but the scheme will come to an end in March.
The DWP runs the scheme between the start of November and the end of March. Each time the temperature drops to zero degrees or below for seven consecutive days, a £25 payment is sent to households in the affected postcode areas on certain benefits to help them pay for heating.
Some areas have seen as many as three payments sent out this winter. The Met Office predicts some more chilly spells during the next month, but the sub-zero temperatures appear to be behind us now. However, if the threshold is met between now and March 31, some people could be in line for another payment.
Warm Home Discount scheme closes – March 31
The Warm Home Discount scheme will come to an end in March.
The government is offering the £150 energy bill rebate to around 3 million low-income households in England and Wales this winter. Eligible households who are with certain energy suppliers will have the money deducted from their bill.
Discounts are processed over the winter months between early October and the end of March. People who are eligible for the Warm Home Discount will have had a letter in the post, and those who believe they are eligible but have not had a letter only have today left to contact the scheme.
The gov.uk website states: “If you might be eligible, you’ll get a letter by early January 2024. If you do not get a letter and you think you’re eligible, you must contact the Warm Home Discount Scheme before 29 February 2024.”
If you miss the deadline you may miss out on getting the discount this year. But if you have received a letter and are still waiting for the credit to appear on your account, you should still get the rebate by March 31.
