There are at least five key money changes to watch out for in 2025, including Winter Fuel Payment, pensions and HMRC taxes.
Five key money changes will affect you in January 2025. (Image: Getty)
The New Year has arrived and with the dawn of January comes financial planning for 2026. One look at your bank balance after Christmas and you’ll probably be ready to make some responsible choices for this year, as the hangover of the festive season keeps us skint until Valentine’s Day.
And this month, there are already five key money changes to look out for, affecting everything from energy bills to booze and taxes. The changes, starting on January 1 and spread throughout the month, could directly affect the amount of spending power and disposable income you have this year. Here are all the key money changes to make a note of in January 2025:
January 1 – Ofgem energy price cap
Starting on January 1, Ofgem has raised prices on gas and electricity yet again, with a 0.2% rise on typical household bills, on top of a 1.2% increase in October.
But for electricity-only users, it’s a far steeper increase of about 5.1%. That’s because the price of gas has dropped by nearly 6%, but the price of electricity is up 5.1%. Taken together, it makes a 0.2% increase for dual fuel users. But for households who only have electricity, it’s a sizeable increase.
You can still avoid the price rise by fixing – fixed tariffs which undercut the price cap by as much as 15% are still available and won’t disqualify you from the automatic £154 coming off bills in April, so a pretty safe bet right now.
January 29 – Winter Fuel Payment end date
The £200 to £300 Winter Fuel Payments caused a lot of uproar when Chancellor Rachel Reeves announced that the money paid to pensioners each winter would be changed to a means-tested approach, so much so that this was scrapped a year later and switched to a universal payment that would instead be taken back via tax for anyone earning more than £35,000.
The Winter Fuel Payments should have been paid to all eligible households by January 29. If you haven’t received a letter to tell you you’ll be getting the money by then, you need to chase it by calling the Winter Fuel Payment Centre on 0800 7310160.
January 21 – Inflation figures released
The official December inflation figures will be issued in December. Just a few years on from highs of more than 11%, inflation has since cooled right down to 3.2% as of November 2025. The measure of price increases has been a core promise from the government, and so a lot of attention will be on the Office for National Statistics when it issues the latest inflation figures on January 21.
January 31 – HMRC deadline for self-assessment tax returns
It’s the dreaded day everyone who has to submit a self-assessment hates: submission and payday. January 31 is the day those who need to complete a tax return must send it to HMRC and in some cases make a payment towards owed taxes.
Anyone who earns over £1,000 from a second income source, such as a buy-to-let property, a side hustle or even selling on eBay must submit a self-assessment tax return.
You will also need to submit one if you earn over £150,000.
Those who have never had to submit one before will also need to register for self-assessment first.
Given that those missing the deadline for submission can be issued a fine by HMRC, of £100 for any submission up to three months late, plus interest. After three months, it’s even more.
January 31 – Final day before alcohol price rise
Even if you’re doing dry January, the last day of January might be the best time for a cheap drink before prices rise on February 1. That’s because Alcohol Duty will go up by 3.66% on February 1 in line with inflation. According to the Wine and Spirit Trade Association, the change will add 10p to a bottle of white wine at 11% ABV, 39p to a bottle of whisky at 40% and 6p to a four pack of lager.
