As January draws to a close, February is bringing a host of significant financial changes that could impact your wallet. From increased alcohol taxes to updates on inflation and energy prices, here’s what you need to know to prepare for next month.
Alcohol Tax Hike – February 1
Starting February 1, alcohol taxes will rise by 3.6%, in line with the Retail Price Index (RPI). The Wine and Spirit Trade Association predicts a 54p increase in the price of a 14.5% ABV bottle of wine, while gin drinkers will see a 32p rise. This new tax system will also see wine taxed according to its strength, so your favourite tipple could cost more depending on the alcohol content.
Bank of England Interest Rate Update – February 6
The Bank of England will announce its next interest rate decision on February 6. Currently sitting at 4.75%, any change to the base rate could impact how much you pay on loans, mortgages, and credit cards. Keep an eye on this one, especially if you have outstanding debt or are considering borrowing in the near future.
Inflation Update – February 19
The Office for National Statistics will release the latest inflation figures on February 19. Although inflation dipped to 2.5% in the last report, it remains above the Bank of England’s 2% target. The inflation rate has a direct impact on your purchasing power, so this could be another important update to watch.
Ofgem Price Cap Update – February 25
The energy price cap, set by Ofgem, will be updated on February 25, with the new cap coming into effect on April 1. Analysts predict the price cap could rise slightly to £1,785 for the average household paying by direct debit. This is an important update for anyone facing rising energy bills – and could be a concern as we head into the spring months.
Warm Home Discount Deadline – February 28
If you’re eligible for the Warm Home Discount, which provides £150 off your electricity bill, make sure to apply by February 28. Many people should have received a letter by now, but if not, you may need to apply before the deadline. This is a valuable discount for those on a low income or receiving certain benefits.
