Countdown for a Cost of Living Crisis

If you’re counting the days until you’ll get help with runaway price rises, it helps to know exactly how many days there are left to count. 

And if you’re bracing yourself for blows and bad news, you need to know when they’re coming too. 

There’s still no formal announcement about some of the most important dates – including the second cost-of-living payment for people on Universal Credit – but some key dates are already in the diary and are worth knowing about.

Now - Over a million families on tax credits get their first cost-of-living payment from now. The £326 is paid automatically into bank accounts, and there will be a second payment during the winter.

5 September - The new Prime Minister will be announced today – which will give us an idea of what to expect in terms of financial support with rocketing prices.

September - In England, a law to protect parents from needless school uniform costs for branded items is expected this month – the law already exists in Scotland. However, schools will have until September 2023 to bring the changes in if it means they need to find a new supplier.

13 September - Wage data announced today feeds into the triple lock guarantee for the rise in state pensions in April. This figure isn’t expected to drive the increase, because the inflation figure (measured in September and announced in October) is likely to be higher.

14 September or 21 September - If Liz Truss becomes the new Prime Minister, we’re expecting a financial statement, laying out plans to help with the cost-of-living crisis and key financial changes.

15 September - The Bank of England Monetary Policy Committee will make its next interest rate announcement, and at the moment a 0.5 percentage point rise is being widely predicted.

20 September - The £150 disability cost-of-living payment will be paid out from today. Anyone who qualifies will receive the money automatically and most will do so by the start of October.

22 Septembe - The new UK and London Living Wage rates for 2022-2023 will be announced. This is the voluntary real living wage – rather than the government minimum.

30 September - The old £20 and £50 notes will be withdrawn. You won’t be able to spend them in stores any more, but you will still be able to pay them into your bank, and the Bank of England will continue to exchange all withdrawn notes

September - The law is expected to change to allow unmarried parents to claim bereavement benefits.

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1 October The horrendous 80 per cent  hike in the energy price cap will hit – pushing the cost per year for dual fuel for an average household from £1,971 to £3,549.

1 October - This is the Don’t Pay protest deadline. If a million people sign up to take part by this point, it will encourage people to cancel their energy bill direct debits in protest at price rises. Anyone considering joining the campaign needs to appreciate that their energy supplier will still pursue the money, you will be building up debts, and not paying could have a profound impact on your credit rating. The supplier could insist on installing a pre-payment meter, so you can’t use energy without paying for it – and the cost of energy will be even higher as a result.

5 October - HMRC deadline to register for self-assessment tax returns.

31 October - Deadline for submitting paper tax returns.

October - All households who pay an energy bill direct will get £400 paid direct to their provider in instalments between October and March.

October - The warm home discount is  a £150 rebate paid by suppliers some time between October and March. If you’re eligible, and your provider is part of the scheme,  you will usually receive it automatically now in England and Wales.

October 19 - September’s inflation figure is announced today. This is used as one of the measures in the triple lock on the state pension, and is used as the basis for uprating benefits too. This raises concerns this year, because it won’t reflect October’s energy price cap hike or any further rises in January and April next year, so by the time the inflationary increase kicks in next April, prices could have risen significantly beyond this level.

End of October - If the new Prime Minister doesn’t make earlier financial changes, the Budget would usually be due at the end of October.

Autumn - The first cost-of-living payment for people on universal credit, pension credit and other means-tested benefits was made in July. The second – of £324 – will be made in the autumn, but the date hasn’t been announced yet

November - The cost-of-living payment for pensioners is being rolled up and paid with the winter fuel allowance – which is paid to anyone over state pension age in November or December. The total you receive will depend on your age and living circumstances.

From November - Cold Weather payments may be made from this point. In England and Wales, older people and those on specific benefits will get £25 for each 7-day period between November and the end of March that the average temperature is below freezing. In Scotland this has been replaced by a £50 one-off payment made to everyone who qualifies in February, regardless of how low the temperature gets.

3 November - Interest rate announcement. At the moment the market is expecting another rise, which could be as much as 0,5 percentage points.

24 November - The energy price cap for January is announced, and it’s widely expected to bring more bad news.

25 November - Black Friday.

28 November - Cyber Monday.

* Sarah Coles is senior personal finance analyst at Hargreaves Lansdown *

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