SAVE THE DATES

From rising household bills to a fall in the Cash ISA allowance, another tough year beckons for consumers. Here are the key deadlines and rate changes that could affect your finances

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THE year begins with continued pressure from household bills, especially as Ofgem’s new energy price cap takes effect.

The good news is that it is rising by just 0.2%, increasing the average typical annual dual-fuel gas and electricity bill by £3 to £1,758.

The price cap applies to direct debit customers, while those who pay on receipt of bill often face higher charges. Some tariffs are now cheaper than the price cap, so check comparison sites to see if you can secure a better deal.

Cornwall Insight forecasts that the energy cap will be cut in April by £138 to £1,620. That reflects the £150 cut to household energy bills announced by Chancellor Rachel Reeves in her November Budget. However, the cost will be covered by taxpayers instead.

JANUARY ALSO BRINGS A KEY TAX DEADLINE

ANYONE who needs to file a self-assessment tax return for the 2024/25 tax year must do so online by January 31. Any tax due must also be paid by the same date. More pensioners are being pulled into the system for the first time, as frozen tax thresholds collide with rising state pensions and modest investment income.

Miss the deadline and HMRC automatically issues a £100 fine, even if no tax is owed. More than a million people missed it last year and had to pay.

INTEREST RATES: RELIEF, BUT NO QUICK FIXES

MORTGAGE holders may feel some relief early in the year as the Bank of England rate cut to 3.75% in December starts to feed through. Further cuts are expected this year as inflation falls, with some suggesting rates could end the year at just 3%.

The Monetary Policy Committee which sets the rates will hold eight meetings in total this year, with the first scheduled for February 5. Falling interest rates are good news for mortgage borrowers, but bad news for savers. Shopping around will be essential to secure the best possible deals.

SPRING PRESSURE: TAXES AND DISAPPEARING SUPPORT