Seven money changes in October affecting energy bills and stamps

Financial changes are incoming for the month of October, with a raft of new rule changes set to be introduced.

The Winter Fuel Payment phone lines will be opening from the start of the month, and there are also planned changes to energy bills.

The payments, worth up to £300, will be automatically received by most eligible individuals.

However, some will need to apply, with more than a million pensioners in line to receive the help as the colder months draw in.

Those eligible will be notified via a letter in October or November, detailing the amount they will receive.

But what else is coming in that could affect our bank balances? Here is all we know.

Ofgem energy price cap

Starting October 1, the energy price cap for the country will rise.

It is likely your energy bill will be hiked following a 10 per cent increase in the industry regulator’s cap on energy prices.

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

Warm Home Discount

Opening in October, the Warm Home Discount Scheme is a one-off £150 discount on your electricity bill if you get the Guarantee Credit element of Pension Credit or are on a low income with high energy costs.

If you’re eligible, your electricity supplier will apply the discount to your bill. The money is not paid to you.

You’ll usually get the discount automatically if you’re eligible, but you will have to apply if you are in Scotland.

For more information visit here.

Self-assessment register deadline

Self-employed? Remember the key date for registering for self-assessment is October 5 following the end of the tax year.

For the tax year running from 6 April 2023 to 5 April 2024, your deadline is October 5, 2024.

There’s no need to re-register if you’ve filed a self-assessment return last year.

If you’re planning to submit your Self Assessment via a paper return instead of online, then the deadline is midnight on October 31.

Stamp price rise

Starting October 7, you will see a rise in the cost of buying stamps after Royal Mail announced a 22 per cent hike in the price of standard first-class stamps. Stamps bought before the increase can still be used after this date though.

Nick Landon, Royal Mail’s chief commercial officer, said: “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.

“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.”

Inflation

On October 16, the latest inflation data from the Office for National Statistics (ONS) is set to be released. According to the most recent update from the ONS, inflation remained steady at 2.2 per cent in the 12 months leading up to August.

Inflation peaked at 11.1 per cent in October 2022.

Budget

The day before Halloween, October 30, Chancellor Rachel Reeves is scheduled to present Labour’s first Budget. She has spoken in recent weeks about “difficult decisions” on tax, spending and benefits, but at the Labour Conference said there would be “no return” to austerity.

New fraud rules for banks

On October 7, banks must adhere to new rules in a bid to stop fraud.

Mandatory refunds as announced by the Payment Systems Regulator (PSR) will come into force. The watchdog has lowered the maximum compensation from an earlier proposal of £415,000 to a new cap of £85,000 which it claims will cover over 99 per cent of claims.