Every December 2025 money change that could affect your wallet

December weighs heavily on your wallet even before you add presents, food and heating.

For many families, it is already a month of juggling bills, stretching every pound and trying to make Christmas feel special without overspending.

Hands checking bills and a December calendar with circled payment dates on a kitchen table.

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If you’re worrying about how to handle the cost of the season, our guide on ‘Can’t afford Christmas‘ can help you plan without the panic.

Mixed into the chaos are a few helpful payments, some early benefit dates and a couple of important financial updates that will shape what happens in 2026.

To save you scrolling through government pages and news sites, we’ve pulled everything together in one place and added the small but important details that actually matter in day-to-day life.

At a glance: what’s happening in December

DWP Christmas bonus paid in early December
New inflation update on 17 December
Bank of England interest rate decision on 18 December
Benefits and State Pension paid early on 24 and 31 December
Self-assessment deadline for tax code collection on 30 December
Winter energy help schemes continue
Councils release extra support through the Household Support Fund

DWP Christmas bonus: the £10 payment that still causes confusion

Every December, the DWP sends out a one-off £10 Christmas bonus to people on certain benefits.

It’s tax-free, arrives automatically if you qualify, and is normally paid in the first full week of the month.

You must be receiving at least one eligible benefit during the qualifying week. This includes things like State Pension, Pension Credit, some disability benefits and some carer benefits.

There’s been a lot of online chatter claiming the bonus is going up to £200. It isn’t. The DWP has confirmed it remains £10.

If yours hasn’t arrived by early January and you think it should have, you can contact the office that pays your main benefit.

Inflation update on 17 December

The latest inflation figures land on 17 December. Recent data puts inflation at 3.6 per cent, down from 3.8 per cent the month before and well below the huge spike in 2022.

Lower inflation doesn’t make things cheaper, but it does slow down how quickly prices rise. If this trend holds, families could see steadier food prices and fewer surprises in 2026.

Interest rates announced on 18 December

The Bank of England’s next interest rate decision is due on 18 December. The base rate is currently 4 per cent after several cuts since 2024.

Some economists think a further cut is possible as inflation cools. If that happens, it could mean:

slightly cheaper tracker mortgage payments
better fixed-rate deals appearing in early 2026
savings rates starting to drift down

If your mortgage fix is ending soon, this update is worth watching.

Early benefit payments on 24 and 31 December

With Christmas Day, Boxing Day and New Year’s Day falling on bank holidays, many benefits will land early this year.

Payments normally due on:

25 or 26 December will arrive on Wednesday 24 December
1 January will arrive on Wednesday 31 December

This affects payments such as Universal Credit, State Pension, PIP, ESA, Child Benefit and more.

It’s helpful to get the money early, but remember your next payment may come after a slightly longer gap in January.

30 December: the tax deadline that can stop a big January bill

If you file a self-assessment tax return and pay tax through PAYE, submitting your online return by 30 December could save you a financial shock.

If you owe less than £3,000, HMRC can collect the tax through your payslip from April instead of you paying a lump sum in January.

It’s one of the simplest ways to spread out a bill, but you must meet the deadline.

Winter energy support running through December

Several cold-weather schemes carry on throughout the month.

Winter fuel payment

Worth £100 to £300 depending on your age and circumstances. Most people get this automatically in November or December.

Cold weather payments

If your local temperature stays below zero for seven days, eligible households receive £25 per cold spell.

Warm Home Discount

A rebate of £150 is applied to electricity bills for qualifying households. This usually appears sometime between October and March.

These schemes can overlap, so it’s worth checking your online account or recent letters to see what you’ve already had.

Extra council help through the household support fund

On top of national payments, local councils in England continue to run the Household Support Fund, which was extended to March 2026.

Support varies by area but can include:

supermarket vouchers
energy top-ups
small emergency cash payments
support for families with children
help for pensioners or low-income households who don’t claim benefits

Many councils release extra support in early December, so it’s worth looking at your council’s website under “Household Support Fund” or “cost of living help”.

Skint Dad says:

If your budget is stretched, checking your council’s support page should be as normal as checking your bank balance. It can make a bigger difference than people expect.

Quick checklist for December

Check eligibility for the £10 DWP bonus
Note if your benefit payment dates change
File your tax return by 30 December if you want HMRC to collect through PAYE
Look out for winter energy payments and rebates
Check your council for extra cost of living help

Even small payments and discounts can take the pressure off at a time when everything costs more.