MILLIONS of households will be impacted by seven major money changes in May - and some will be better off than others.
Bank holidays will mean that thousands on Universal Credit and benefits will be paid earlier than usual.
Those who have still not filed their self-assessment tax return face a £10 a day penalty from May 1 - so get yours in now to avoid this.
A major supermarket is upping the amount that customers need to spend to shop online without facing a charge.
Those who receive tax credits will start to receive the first chunk of the £900 cost of living payment in early May.
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However, if you're not eligible for the £900 cash you could get a pay boost with another £150 payment.
There's still time for hundreds of thousands of hard-up pensioners to apply for Pension Credit and qualify for the £900 cost of living payment before the end of May.
The Bank of England could also raise interest rates again next month to help keep a lid on inflation.
Here are all the major money changes coming in May and how they could affect you.
Universal credit and benefits payments date change - May 1
If you're due to receive your payment on May 1, you'll actually get it three days before on April 28 instead.
This is because the Department for Work and Pensions (DWP) doesn't make benefit payments on bank holidays - so you won't be paid on May 1.
The following 12 benefits will be affected:
- Attendance allowance
- Carer's allowance
- Child benefit
- Disability living allowance
- Employment and support allowance
- Income support
- Jobseeker's allowance
- Pension credit
- Personal independence payment
- State pension
- Tax credits (such as Working Tax Credit)
- Universal Credit
Keep in mind there are more bank holidays in May to watch out for too.
If you're due payment on the substituted bank holiday for King Charles III's Coronation (May 8) payments will be made on May 5 instead.
And there's also the spring bank holiday on May 29 to look out for, when payments will be shifted forward to May 26.
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If you don't receive your benefit payment one working day before the bank holiday, you should contact DWP directly.
You can also submit a complaint to them to get a problem sorted if your payment is wrong.
Jobcentres will also be closed on each May bank holiday so claimants won't need to visit on these days for appointments.
Daily penalties for late tax returns - May 1
The deadline for filing paper-form tax returns ended on October 31 2022.
Those who missed the paper deadline had until January 31 to file online.
Tax is usually deducted automatically from wages, pensions and savings, but those who are self-employed with businesses that generate other incomes must report it in a tax return.
However, if you still haven't filed by the end of April and have already received a £100 penalty you'll be charged another fine on top.
From May 1, you'll be charged £10 for each additional day (capped at 90 days) to a maximum of £900 if you still fail to file your tax return.
For payments late by six months, you'll be fined 5% of the tax you owe or £300, whichever is greater.
Interest is also added on top of this.
If you deliberately haven't filed your tax return, a fine of up to 100% of the tax due could then be sent too.
Tesco increases home delivery fees - May 2
Tesco is increasing the minimum amount that customers need to spend to qualify for home delivery without facing an extra charge.
From May 2, the minimum basket value for home delivery will change to £50 - up from its previous level of £40
It is also increasing the basket charge for those who don't meet the minimum spend.
The minimum basket charge will increase to £5 - up from £4.
The minimum basket charge is added to all orders that don’t meet the minimum basket value of £50.
But Tesco is retaining the minimum order value for click and collect which will remain at £25 at all stores.
Tax credits claimants start receiving £301 cost of living payment - May 2
Those who claim child tax credit and working tax credit will start to receive the first instalment of the government's £900 cost of living payment from May 2.
Payments will continue to be issued until May 9.
Households on tax credits are paid the cost of living cash after those on Universal Credit and benefits to ensure that claimants who get both aren't paid twice.
Those receiving tax credits and getting their payment from HMRC should look out for a specific code in their statement showing it's the cost of living payment - "HMRC COLS".
But if you receive tax credits along with a qualifying benefit from DWP you will be paid by the DWP from April 25.
Those paid by the DWP will be able to see when the money has landed in your bank account by looking for the words: DWP COLP along with your National Insurance number.
Interest rate rise - May 11
The Bank of England's Monetary Policy Committee (MPC) meet twice every quarter to decide if interest rates need to rise.
The MPC will make any announcements on the Bank of England's base rate on:
- Thursday, May 11
- Thursday, June 22
- Thursday, August 3
- Thursday, September 21
- Thursday, November 2
- Thursday, December 14
If the bank decides to raise interest rates further it will make the cost of borrowing, including loans, credit cards and mortgage repayments more expensive.
Four million mortgage holders are already set to see their monthly payments jump by the end of 2023 when they move off cheap mortgage deals and are forced to refinance at a higher rate.
We've already explained how much your monthly bills could go up by and what to do about it.
However, savings rates will get a boost as banks continue to battle it out by offering market-leading interest rates.
Historically high-street banks don't rush to up their savings rates in line with the base rate of interest - however, challenger banks are offering increasingly better rates.
Deadline to backdate claims for £301 cost of living cash - May 19
Households on certain benefits including those on Pension Credit are eligible for a £900 cost of living payment.
The payment, which is tax-free, has been split into three instalments worth £301, £300 and £299.
The second and third instalments are set to be paid in the autumn of this year and spring of 2024.
You'll be eligible for the payment if you were entitled to the following benefits between January 26 and February 25:
- Income-based jobseeker’s allowance
- Income-related employment and support allowance
- Income support
- Pension credit
- Child tax credit
- Working tax credit
- Universal Credit
However, the DWP is encouraging low-income pensioners not already getting Pension Credit to check their eligibility, as they can still qualify for the £301 cost of living payment after the qualifying period.
This is because Pension Credit claims can be backdated by up to three months.
Low-income retirees can get more than £3,500 a year to support everyday costs through pension credit.
So if you make a successful claim on May 19 and are able to backdate your payments by the full three months - you'll be eligible for the cash.
You can claim the benefit online or by calling the Pension Credit claim line on 0800 99 1234.
Before you make a claim it's important to have all your details on hand.
You'll need your National Insurance number, bank account details and information about your income, savings and investments.
Deadline to apply for free £400 energy bill cash - May 31
Over 900,000 households were discovered to be ineligible for the automatic £400 energy bill discount given out between October and March.
However, these households can manually claim the cash back on the government website - but they only have until the end of May to claim the free cash.
You'll be eligible to apply for the £400 energy bill discount if your main home is:
- A residential park home
- On a boat on a permanent residential mooring
- On a permanent Gypsy and Traveller site
- Part of a heat network without an electricity meter
- In social or private rented accommodation which has a business energy connection or a communal electricity supply
- Off the mains electricity or gas grid
- In a care home or assisted living facility and you pay for some or all of your care
- In a separate domestic home within a non-domestic property (such as a farmhouse or a flat above a shop)
If you meet the criteria to apply visit the government website and have your email address, phone number and bank account details to hand.
After you apply, your local council will check you live at the address you apply for.
You'll be told about the progress of your application by email or letter. You should get a response within 6 weeks.
If you're eligible, your council will arrange a one-off payment. You do not need to repay this money.