The Mirror rounds up all the December 2025 money changes, including the DWP Christmas bonus, plus inflation and interest rates updates
December is often an expensive month due to Christmas – but there are other big financial updates that are coming up and that can affect your wallet.
There will be a Christmas bonus payment for some households, and we’ll also get an update on inflation and interest rates.
Several winter help schemes will also continue into December, including Cold Weather Payments and the Warm Home Discount. Here is everything you need to know.
DWP Christmas bonus – start of December
The Department for Work and Pensions (DWP) will soon send out its Christmas bonus, worth £10. In previous years, it has been paid to eligible households during the first week of December.
It is tax-free, does not affect any other benefits you’re claiming, and should come through by January 1 at the latest. You have to be claiming certain benefits to get the Christmas bonus.
Inflation – December 17
The latest inflation data from the Office for National Statistics (ONS) will be released on December 17. Inflation is a measure of how prices have changed over time. Inflation is currently sitting at 3.6% but at its highest, it was 11.1% in October 2022.
Bank of England interest rates – December 18
The Bank of England will make its next interest rates announcement on December 18. The base rate is currently at 4% and has been cut five times since August 2024.
At its peak, the base rate was 5.25%. The base rate is what the Bank of England charges other banks and lenders – this then increases your cost of borrowing as a customer.
Benefits paid early – December 24 and December 31
Thousands of people will see their benefits paid early next month due to the Christmas and New Year bank holidays. This year, Christmas Day will fall on a Thursday, and Boxing Day is on Friday.
If you’re due a benefit on either of these days, you’ll likely be paid on Wednesday, December 24 instead.
Similarly, if you’re due a benefit payment on January 1, which will fall on a Thursday, you should receive your benefit payment on Wednesday, December 31.
Self-assessment deadline – December 30
Self-assessment taxpayers who want HMRC to collect the tax owed through their PAYE tax code must submit their online return by December 30.
You can pay your self-assessment tax through your tax code if you owe less than £3,000 on your tax bill and you already pay tax through PAYE, for example, if you’re an employee but have earned extra money through a side hustle.
Winter help schemes – throughout December
There will be several support schemes carrying on throughout December. The DWP will continue to pay out Cold Weather Payments worth £25 when temperatures drop below zero degrees for seven consecutive days.
Winter Fuel Payments, worth up to £300, will also be sent to more households. There is also the Warm Home Discount, worth £150 off your electricity bill.
