Nine major DWP and money changes coming into force in October – from energy price cap to first-class stamps

Nine financial and regulatory changes that will affect Department for Work and Pensions (DWP) claimants have been announced, set to impact UK households from October 2024. Among these changes is the opening of the Winter Fuel Payment phone lines as well as Labour’s first Budget.

The changes will span a variety of areas, from energy bills to Royal Mail stamps. Winter Fuel Payments, worth up to £300, will be automatically received by most eligible individuals, however, some will need to apply – those needing to apply can do so via phone from October 28.

In addition to the Winter Fuel Allowance, valued at £300, there are nine other changes and financial rules that will affect people from next month. Here is a list of changes ahead of the shake-up.

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Ofgem energy price cap

One of the changes includes an increase in the Ofgem energy price cap from October 1. Energy bills will see a rise after the industry regulator announced a 10% increase in its cap on energy prices, reports Birmingham Live, reports Wales Online.

With the new price cap, the average annual energy bill will increase to £1,717 for gas and electricity, a rise of £149 from the current level of £1,568, which has been in place since July. The average price cap for standard credit households will see an increase of £161 to £1,829.

Warm Home Discount

UK households on lower incomes can look forward to a £150 boost to their energy budgets when the Warm Home Discount Scheme re-opens this coming October. This government measure is designed to lighten the load of energy bills for qualified individuals.

Mobile roaming rules

New mobile roaming guidelines are due to take effect from October 1, 2024, following Ofcom’s introduction of fresh consumer safeguards. Mobile operators will be required to alert customers as they commence roaming and offer easily accessible, clear guidance, enabling informed decisions about mobile phone use while abroad.

Ofcom’s Director of Telecoms Consumer Policy Cristina Luna-Esteban emphasised the importance of these changes by saying: “The last thing holidaymakers want when returning from a trip abroad is an unexpected mobile phone bill. At the moment, some customers aren’t getting clear information from their provider to help them manage their mobile use and plan their spend.”

“Our new protections will mean you’re told what it’ll cost when you start roaming, so you can be confident that there won’t be any surprises when it comes to your mobile bill while on holiday.”

Self-assessment

The cutoff date for self-assessment registration is near, with a deadline set for October 5. Individuals who need to file a self-assessment must ensure their registration process is completed promptly after the close of a tax year.

Taxpayers are being reminded of important deadlines for submitting tax returns. For those needing to complete a return for the period running from April 6, 2023, to April 5, 2024, it’s essential to register by October 5, 2024.

Those who’ve previously submitted a self assessment return don’t need to register again; HMRC should alert them to file again, but the responsibility ultimately falls on the individual.

First-class stamps

Those purchasing first-class stamps will notice their wallets pinching a bit harder as prices for standard first-class stamps soar by 22%, effective from Monday, October 7. Royal Mail has been upfront about this significant price jump, but any stamps bought before the rise can still be used later at no extra cost.

Nick Landon of Royal Mail commented on the rising costs: “We always consider price increases very carefully. However, when letter volumes have declined by two-thirds since their peak, the cost of delivering each letter inevitably increases.”

He further outlined the complexities of the postal network, stating: “A complex and extensive network is needed to get every letter and parcel across the country for a single price travelling on trucks, planes, ferries and in some cases drones before it reaches its final destination [delivered] on foot. We are proud to deliver the universal service, but the financial cost is significant.”

Fraud protection rules for banks

New fraud protection rules for banks are set to come into force on October 7, marking a significant shift in consumer protection. The Payment Systems Regulator (PSR) has announced that mandatory refunds will be implemented from this date, in what is being hailed as a global first.

However, the PSR has decided to lower the maximum compensation from an initial proposal of £415,000 to a new cap of £85,000. This move, according to the regulator, will still cover over 99% of claims.

Rocio Concha, Which? director of policy and advocacy, has voiced strong opposition to this change, arguing that the reduced reimbursement cap could “reduce the incentives for banks and payments firms to take fraud prevention seriously”.

Concha further expressed her disappointment with the regulator’s decision: “The regulator has shamefully sidelined scam victims, despite the evidence showing that this decision could have a negative financial and psychological impact on them.”

Inflation

In other news, the Office for National Statistics (ONS) is poised to release the latest inflation data on October 16. Inflation, which tracks the changes in price levels over time, remained at 2.2% for the year leading up to August, according to the ONS’s most recent figures. Notably, inflation had reached a peak of 11.1% in October 2022.

The budget

Chancellor Rachel Reeves is preparing to deliver Labour’s first Budget on Wednesday, October 30. Earlier in September, she indicated to the BBC that the Budget would require “difficult decisions” concerning taxes, spending, and benefits. Nevertheless, her address at the Labour Party conference offered a more hopeful vision for the economic outlook.

Self-assessment – paper deadline

The deadline for submitting self-assessment paper returns is October 31. If you opt to file your Self Assessment through a paper return rather than online, it must reach HMRC by midnight on October 31.

Keep in mind that this date is the final day for HMRC to receive your return, so make sure to allow enough time for both preparation and postage.