6 changes that will affect your finances from May – here’s how to avoid them

HOUSEHOLDS could see their finances affected in a number of ways in May - but it's possible to avoid some of them.

Ranging from bill hikes to bank holidays impacting your benefits and wages, we explain what it means for the cash in your wallet.

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It comes as pubs and restaurants are finally set to reopen for indoor service from May 17 in England, having reopened for outdoor dining on April 12.

Households have had to get used to 19 new laws and financial changes that came into effect in April when the new tax year started.

This included rule changes for first-time buyers and pensioners, and payments also increased for benefit claimants.

Below we round up the major changes set to hit in May.

1. Sky price hike

Sky home phone customers will be faced with price hikes of up to £24 a year from May 1.

It comes after existing TV and broadband customers saw an up to £72 increase in bills from April 1.

How much your bill will go up by depends on what Sky products you have and when you signed up.

However, the standard price of the Sky Talk Anytime Extra will rise by £2 a month - from £10 a month to £12 a month.

While the Sky Talk International Extra will rise by £2 a month - from £12 a month to £14 a month.

If your bill's going up, you should've been notified of the exact increase by email or post between February 17 and March 27.

If you're unhappy with the price hike, bill payers who are out of contract can switch deals penalty-free.

Customers on a fixed deal can also cancel their contract early penalty-free, but only once you've had an official notification of the price increase.

If you're planning to switch, use comparison sites like  and  to find the best contract for you.

Alternatively, if you want to stay with Sky then you could try calling up the customers service teams and haggle for a better deal.

2. Three price hike

Three Mobile customers will also be hit with a 1.4% increase in their monthly bills from May.

This affects those who joined the telecoms firm or renewed their contract between May 29, 2015, and October 28, 2020.

It impacts customers on SIM only, pay-monthly, mobile broadband and home broadband contracts.

The average monthly cost was £24.25 in November, meaning Three customers will see a bill increase of 34p a month - £4.07 a year.

Meanwhile, the Apple iPhone 12 Pro Max hadn’t launched in October last year, but if you had taken out an contract for £68 a month, you’ll be paying 95p more a month, which is roughly £11.42 a year.

Three has contacted customers about the changes since March 2021, and the increase will then come into effect from May bills.

It comes as customers who took out a new deal or renewed their contract after October 29 2020 were hit with a 4.5% price hike in April.

Sadly, the latest price rise is written into your contract, so you don't have the option to leave your deal without paying a penalty.

If you're unhappy, make sure you switch providers as soon as the deal ends.

A Three spokesperson told The Sun: “Like other mobile network providers, our pay monthly plans are subject to an annual price increase.

“We are investing +£2 billion in the UK’s fastest 5G network to ensure we have a strong network, capable of delivering better connectivity, every day, for every customer.”

3. Check payslips - or risk missing out on Universal Credit payments

Employees on Universal Credit are being urged to check their payslips or risk missing out on benefit payments in May.

Millions of workers will be paid early by employers if their usual pay day falls on the bank holiday Mondays on May 3 or May 31 next month.

But for low-income earners who rely on the welfare payments to cover bills, it could see them receive £0 in their next Universal Credit payout.

This is because being paid early could see two pay packets fall into the same assessment period, taking them above the income threshold, meaning they don't qualify for benefits that month.

In June last year, the flaw was branded "irrational and unlawful" by judges, who ordered the Department for Work and Pensions (DWP) to fix it.

Since November 16, the DWP has been manually moving one of the payments to register in the following assessment period on the system.

The solution is aimed at supporting those who are paid monthly, leaving workers who are paid weekly, fortnightly or every four weeks to fall through the cracks.

If you're paid more frequently, the DWP is urging you to alert your work coach via the online journal to make sure you're not overlooked.

4. New benefit payment dates

Other benefit claimants may also receive their cash on a different date in May due to the bank holidays.

For example, households who get tax credits and who would expect to be paid on May 3 will instead be paid on the last working day before this.

It means the payments will arrive in people's bank accounts on Friday, April 30.

All other benefit payments like PIP and ESA as well as state pension payments are also expected to follow the same changes.

The same method also applies with the second May bank holiday on May 31. 

It means if you're currently expecting to receive the money on May 31, you'll get it on the last working day before the bank holiday - May 28.

The DWP says that you don't need to do anything in order to be paid early.

Remember though, being paid earlier than normal means that you'll need to make it stretch an extra day the following month.

Make sure you take this into account when working out your household budgets.

5. Furloughed workers may get pay boost

Furloughed workers can get an earnings boost over the two May bank holidays.

The government's Coronavirus Jobs Retention Scheme (CRJS) currently covers 80%, up to £2,500 a month, of worker wages.

However, the upcoming bank holidays will affect many furloughed workers wages - and for some it will mean a slight pay increase.

If you'll get it depends on your contract and whether or not you're normally required to work bank holidays.

If staff are contractually entitled to take bank holidays off, they should be paid in full for any that fall during a period of furlough.

This means that your wages will increase to 100%, thanks to the May 3 and May 31 bank holidays.

But it's not the same for everyone - for some workers, a bank holiday is considered a normal working day.

In this instance, a furloughed worker will continue to receive 80% of their wages for the day.

However, furloughed staff on these types of contracts can actually increase their income by taking annual leave on the bank holidays.

Staff can accrue and take holiday if they've been furloughed in the same way they would in normal working conditions.

6. New debt help scheme launches

Struggling households will be able to pause council tax payments and other bills for 60 days under a new scheme launching on May 4.

First announced in June 2019, the breathing space scheme will protect hard-up Brits from bailiffs and prosecution for two months.

Affected households will also have their debts frozen, meaning no interest can be added.

In December, councils were warned they won't be able to share details with debt collectors and bailiffs despite missed payments by eligible Brits.

Once they get confirmation of breathing space for certain individuals, councils and providers must also search for any extra debt owed by the same person.

This is because they may be eligible to have this added to the breathing space period too.

The scheme will apply to council tax arrears and other outstanding debt, including tax, benefit overpayments as well as credit cards and loans.

It will effectively pause enforcement action from creditors and freeze charges, fees and certain interest on the debts for up to two months.

During this time, households will receive professional debt advice to find a long-term solution to their financial difficulties.

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