Five money changes coming Autumn 2023 including cost of living payment

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As the summer holidays near their end – and the sun finally puts in a much-needed appearance – the cash we’ve splashed on those days out starts to mount up and thoughts turn to getting finances in order for autumn.

The cost of living crisis is still very much with us, as despite inflation falling, food and energy prices remain stubbornly high. For parents, autumn often sees a host of extra expenses, including school uniforms.

That’s why keeping on top of money matters this autumn is vital, especially as before we know it, Christmas (yes, it’s only August but frankly this wet weather has had us putting The Holiday on repeat) will be upon us with all the extra costs that it entails.

So what money changes are incoming this autumn, and when can we expect them?

Let’s take a look.

Cost of living Payment

The second Cost of Living Payment is due to arrive this autumn, and will be for £300.

Although no date has been given, other than ‘autumn’, in 2022 the payments were made four months apart.

The first 2023/4 payment of £301 was rolled out between late April through to mid May – – so if it follows the same pattern as last year, the second could be any time from late August onwards.

This will be followed by a third instalment, of £299, in Spring 2024.

Those eligible will be receiving at least one of the following benefits:

• Universal Credit
• Income-based Jobseekers’ Allowance
• Income-related Employment and Support Allowance
• Income Support
• Working Tax Credit
• Child Tax Credit
• Pension Credit.

This money is paid directly into bank accounts and there is no need to apply for them. If you’re eligible, you should receive it – but if you haven’t, you can report it online.

Interest rates

The Bank of England is due to make a new announcement on interest rates on Thursday, September 21, 2023.

At the beginning of August, The Bank of England’s Monetary Policy Committee (MPC) voted to increase the base interest rate to 5.25% – its highest level since 2008.

While nothing is certain, it has been widely reported that interest rates are expected to rise again at the next announcement.

This will be followed by a further announcement on Thursday, November 2.

Of course, rising interest rates can send mortgage repayments soaring, with some homeowners seeing costs rise by hundreds of pounds overnight, though they are good news for savers.

Energy Price Cap

The Energy Price Cap, which limits the amount energy companies can charge per unit of energy, will be reset on October 1, 2023.

It’s currently set at £2,074 which means that a typical household bill would be capped at this level.

But the cap doesn’t cap everyone’s overall bills, just each unit of energy, so the more you use, the more you pay.

No-one knows what the new Energy Price Cap will be set at on October 1, which is why it is difficult to decide whether to switch to a fixed tariff now, as it could come down further.

Winter fuel payment

The Winter Fuel Payment is made by the government to people born before 25 September 1957.

It is aimed at helping people pay their heating bills and is between £250 and £600.

The amount includes a ‘Pensioner Cost of Living Payment’. This is between £150 and £300 and separate to the other Cost of Living Payments.

Most people will get their money between November and December.

You do not need to claim if you get any of the following:

• State Pension
• Pension Credit
• Attendance Allowance
• Personal Independence Payment (PIP)
• Carers Allowance
• Disability Living Allowance (DLA)
• Income Support
• income-related Employment and Support Allowance (ESA)
• income-based Jobseeker’s Allowance (JSA)
• awards from the War Pensions Scheme
• Industrial Injuries Disablement Benefit
• Incapacity Benefit
• Industrial Death Benefit

If you do not get any of these, you need to claim if either of the following apply:

• you’ve not got the Winter Fuel Payment before
• you’ve deferred your State Pension since your last Winter Fuel Payment

Energy help schemes

The government’s Cold Weather Payment scheme for England, Wales and Northern Ireland begins again on November 1, and it pays out £25 for each 7 day period of cold weather until March 31.

You’ll get a payment if the average temperature in your area is recorded as, or forecast to be, 0°C or below over seven consecutive days.

The Warm Home Discount Scheme will also start up again in October and is a one-off discount off your electricity bill of £150.

Last year, those who were eligible were notified by letter and were either:

• Receiving the Guarantee Credit element of Pension Credit
• On a low income and had high energy costs

MORE : Major changes coming to student loans for university newcomers this September

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