What are the Money Changes Coming This February?
The cost of living crisis is continuing to cause people to struggle with their budgets. With the Bank of England set to push up the base rate yet again, and the winter wearing on, keeping track of your finances has never been so important.
In the weeks coming in February of 2023, some changes are due to occur that might affect how you manage your household budget. This article aims to explain some of the upcoming changes from Universal Credit changes to price caps.
Passport Fees
The price of passport renewals will increase by 9% on February 2, meaning that the price for an adult applying online will rise from £75.50 to £82.50. For a child, online applications will increase from £49 to £53.50 for a child.
For people applying using paper applications, the price will increase from £85 to £93 for adults, and from £58.50 to £64 for a child.
This price increase also affects fast track applications, which usually take 1 week. For adults, this increase will be from £142 to £155, and for a child it will be from £122 to £126. Same day services will cost £193.50, up from £177.
Interest Rates Will Likely Rise
On February 2 2023, the Bank of England will decide whether interest rates will be raised again. The central bank has increased its base rate to its highest level in 14 years in December 2022. This rise took the base rate from 3% to 3.5%.
If interest rates rise, this will impact how much you will be charged for your mortgage repayments and it will likely make new mortgages or those going to the SVR rate to be more dear. It may also make it harder to get a mortgage and there are steps to follow if you have been declined.
Universal Credit Rule Change
People who claim Universal Credit will be under more pressure to increase their hours or find work. Benefits claimants who work 12 hours per week at the National Living Wage are not required to meet regularly with their Jobcentre coach. People who fail to look for work when required to could be sanctioned or have their benefits stopped or reduced.
However, as part of a new Universal Credit price cap, this threshold is being increased to 15 hours a week for individuals and 24 hours a week for couples. This new change starts impacting claimants from February 26, and means more people could be forced to increase their hours.
Ofgem Price Cap
On February 27, Ofgem will announce its price cap for April to June. The Energy Price Guarantee has set the typical energy bill at £2500 a year, but this figure is likely to increase, potentially to £3000 a year or above.
Water Bills Rise
Water UK announced on 4 February 2022 that water bills would rise by a certain amount. This is a decent indication that a similar announcement could be coming in February 2023 too.
Water UK is likely to announce how much your water bill could increase depending on where you live and how much you use. Different households could see a rise or a fall in prices. You will not be allowed to switch water suppliers, as you will be assigned based on where you live.
Energy Bill Discount
The fifth energy bill discount, worth £67, will be sent out in February 2023. This is the penultimate discount, which will add up to £400 in total. Houses have already received £66 in October and November, and £67 in December and January.
Two more payments are coming, one in February and the other in March 2023. Direct debit customers will automatically receive this discount as either a bill discount or a refund.