With Christmas fast approaching many people will have an eye on their finances in the coming weeks. The festive period can be stressful for many with presents, dinners, and lots of financial considerations in such a short space of time.

There are a number of important dates and changes coming in December that could make a big difference to your finances. These include cost of living payments, changes to benefit dates, and potential updates that could affect your energy bills.

Here are all the major money changes you need to be aware of in December. To get the latest money stories straight to your inbox twice a week sign up to our newsletter here.

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Winter fuel payment

The Department for Work and Pensions (DWP) is offering a winter fuel payment to help older people meet the cost of their heating during the winter months.

It is available to both benefits claimants and those who don't receive benefits and is usually sent out in November or December. People have been receiving letters to let them know if they are eligible and have been able to begin a claim over the phone or by post from September 18.

The scheme officially opened on November 1 and the money is sent out between then and January meaning many could get the money in December. You will get it if you if you were born before September 25, 1957, and receive certain benefits or state pension. How much you get depends on when you were born and your circumstances with the money this year including a pensioner top-up of between £150 and £300. This means anyone eligible will receive between £250 and £600. Find out more about the payment here.

Cold weather payments

With the temperatures plummeting in recent weeks many will also likely be eligible for cold weather payments. The Department for Work and Pensions (DWP) is continuing the cold weather payments which is running from November 1, 2023, until March 31, 2024.

According to the government you will get a payment if the average temperature in your area is recorded as, or forecast to be, zero degrees Celsius or below over seven consecutive days. You’ll get £25 for each seven-day period of very cold weather between November 1, 2023, and March 31, 2024.

You may get cold weather payments if you’re getting:

• Pension credit

• Income support

• Income-based jobseeker’s allowance (JSA)

• Income-related employment and support allowance (ESA)

• Universal credit

• Support for mortgage interest

You’ll usually get the payments if you get income support or income-based jobseeker’s allowance (JSA) and have any of the following:

• a disability or pensioner premium

• a child who is disabled

• child tax credit that includes a disability or severe disability element

• a child under five living with you

With freezing weather triggering the payments in postcodes across Wales last Christmas it is possible more payments will happen in the coming weeks so be sure and check if your area qualifies if it happens. You can find out more here.

£10 Christmas bonus

Some people will also get a bonus payment later this year to help with the cost of living crisis. The Department for Work and Pensions (DWP) is sending out a £10 Christmas bonus which is usually given in the first week of December and will be made as a separate payment – so don't worry if you don’t notice your additional £10 when you get your usual benefits or pension payment. You can find out more about the bonus here.

You will qualify for the money if you qualify for the following benefits in the qualifying week which is expected to be December 4-10:

• Adult disability payment
• Armed Forces independence payment
• Attendance allowance
• Carer’s allowance
• Child disability payment
• Constant attendance allowance (paid under Industrial Injuries or War Pensions schemes)
• Contribution-based employment and support allowance (once the main phase of the benefit is entered after the first 13 weeks of claim)
• Disability living allowance
• Incapacity benefit at the long-term rate
• Industrial death benefit (for widows or widowers)
• Mobility supplement
• Pension credit - the guarantee element
• Personal independence payment (PIP)
• State pension (including Graduated Retirement Benefit)
• Severe disablement allowance (transitionally protected)
• Unemployability supplement or allowance
• War disablement pension at state pension age
• War Widow’s Pension
• Widowed mother’s allowance
• Widowed parent’s allowance
• Widow’s pension

Energy price cap change

The Ofgem energy price cap, which dictates what a typical household energy bill costs, is also expected to drop again after falling earlier in 2023 for the first time in two years. It followed massive hikes which saw the average bill hit nearly £3,000.

On October 1 the price cap fell by 7% to £1,834 a year for the next three-month period and the next cap, to be revealed in the coming weeks, is predicted to see bills rise slightly to an average of £1,931 a year from January 1, 2024. This is something to factor into your budgeting over the Christmas and January period when many will be turning on their heating more often.

Changes to benefit payment dates

Some benefits claimants will see changes to their payment dates in December due to the way Christmas Day, Boxing Day, and New Year's Day fall this year. The upcoming changes mean anyone due to receive their benefits on Saturday, December 23, Sunday, December 24, Monday, December 25 (Christmas Day), or Tuesday, December 26 (Boxing Day), will receive their money on Friday, December 22, instead.

Similarly anyone due to receive money on Saturday, December 30, Sunday, December 31, or Monday, January 1, will get it on Friday, December 29, instead.

The changes will apply to the following benefits and payments:

• Universal credit
• State pension
• Pension credit
• Disability living allowance
• Personal independence payment
• Attendance allowance
• Carer’s allowance
• Employment support allowance
• Income support
• Jobseeker’s allowance