ALL CHANGE
Seven money changes coming in March – including benefits change, fare hike and Spring Budget
A number of changes may require you to act if you don't want to penalised
MARCH will see some major money changes including a key tweak to benefits, train fare hikes and the Chancellor's Spring Budget.
There are also a number of deadlines coming up, including the end of the current round of the Household Support Fund and the last day to complete on a house purchase if you're looking to avoid stamp duty costs.
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Here are all the big money changes you can expect to see in March and what they mean for you.
March 2 - Train fare hike
Millions of travellers will see rail fares increase by 4.6% from March 2 as the annual price rise kicks in.
The rise, which was announced in the Autumn Budget, is set to deliver a fresh blow to passengers who use the train to commute.
Following the increase, the cost of a yearly ticket from Rugby to London will rise by £496.62 to £11,292.62.
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And the commute from Milton Keynes to London will leap by £357.33 to £8,125.33.
The 4.6% rise will apply to around 45% of all ticket prices in England, and Wales.
Those services impacted include season tickets on most commuter journeys, some off-peak return tickets on long-distance routes, and flexible tickets for travel around major cities.
Train operators set rises in other unregulated fares, although these are likely to be very close to changes in regulated ticket prices.
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The government has said the rise is the “the lowest absolute increase in three years", however this is likely to be little consolation to travellers and commuters.
Shifting from Legacy Benefits to Universal Credit
March 20 - BoE interest rate decision
The Bank of England (BoE) Monetary Policy Committee (MPC) will meet to set its base rate on March 20.
The base rate is the rate charged to smaller high street banks and building societies and impacts savings and mortgage rates.
The MPC last met in February when it reduced the base rate from 4.75% to 4.5% - the third interest rates cut since 2020.
February's reduction gave millions of mortgage holders hope of a decrease in bills.
However, it was less favourable news for savers, who were left facing a drop in the interest rates on their savings accounts.
The BoE typically raises interest rates when inflation is high to encourage people to save rather than spend their money, thereby slowing demand, which eases the rate of price rises.
And, with an unexpected jump in inflation reported in February, it could be unlikely March will bring a further cut.
March 26 - Spring Budget
Chancellor Rachel Reeves will deliver the spring Budget on Wednesday March 26.
She will make a statement to the House of Commons detailing upcoming tax and spending changes.
The chancellor will also discuss the latest fiscal forecast from the Office for Budget Responsibility.
The Spring Budget is not expected to be a fiscal event on the scale of the Autumn Budget, which saw the chancellor unveil £40billion in tax hikes.
However, many will be hoping to hear announcements that could stimulate the economy following sluggish growth and January’s inflation rise.
March 31 - Current Household Support Fund round to end
The Household Support Fund will end on March 31 2025, after being extended multiple times.
Through the fund, vulnerable households can claim support to help with the cost of living.
The funding is supplied from a £421million pot provided by the Department for Work and Pensions.
The fund was first introduced in October 2021 and has been extended five times.
Councils get a portion of the cash based on their population, size, catchment area, and need, which they allocate to vulnerable households.
It is worth checking in with your local council to see if you can claim extra help before the scheme closes.
March 31 - Winter Fuel Payment claims deadline
Claims for the 2024/25 Winter Fuel Payment must have been received by the Department of Work and Pensions by March 31.
The Winter Fuel Payment is a state benefit paid once a year to pensioners to help cover the cost of heating during colder months.
The handout was previously available to everyone aged above 66 and helped with high energy bills.
But Chancellor Rachel Reeves revealed in 2024 it would only be given to retirees on pension credit, or other means-tested benefits.
From November 2024, those still eligible began receiving automatic payments of up to £300.
Payments continued to be made throughout December, with most eligible recipients receiving the funds automatically.
To have been eligible pensioners need to have received one of the qualifying benefits during the qualifying week, which was September 16-22.
If you should have received the benefit and have not, you still have time to claim.
Those who may not have received the payment automatically include those living overseas.
You can contact the Winter Fuel Payment Centre on 0800 731 0160.
March 31 - Universal Credit migration deadline
Recipients of five benefits will need to have migrated to Universal Credit by the end of March or risk seeing their payments stopped.
The final migration notices for those receiving five legacy benefits were sent out by the end of December 2024.
The benefits impacted are:
- Working tax credits
- Child tax credits
- Income-based jobseeker's allowance
- Income support
- Housing benefit (for those under the State Pension age)
All five benefits will be permanently discontinued from April.
If you received a managed migration notice in December 2024, you need to have applied for Universal Credit by the end of March to ensure your payments continue without interruption.
Between July 2022 and September 30, 2024, the Department for Work and Pensions sent almost 1.4million migration notices.
However, it said 318,834 individuals lost their benefits after failing to act on migration notices received between July 2022 and June 2024.
March 31 - Stamp duty deadline
The final day to complete a house purchase and avoid higher stamp duty rates is March 31.
Currently, first-time buyers do not have to pay stamp duty on the first £450,000 of a property purchase.
But from April the threshold beyond which they must pay the tax will plummet to £300,000.
The change could add thousands of pounds to the total cost of buying a home.
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Regular buyers (who are not purchasing their first home) will also see the stamp duty threshold fall from £250,000 to £125,000.
The change means that those buying a property worth more than £250,000 will pay an additional £2,500 in stamp duty.
STAMP duty land tax (SDLT) is a lump sum payment anyone buying a property or piece of land over a certain price has to pay.
You pay the tax when you:
- Buy a freehold property
- Buy a new or existing leasehold
- Buy a property through a shared ownership scheme
- Land is transferred to you or property in exchange for payment, for example, you take on a mortgage or buy a share in a house
The rate you pay depends on the price and type of property and certain thresholds:
The current thresholds are:
- £250,000 for residential properties
- £425,000 for first-time buyers buying a residential property worth £625,000 or less
- £150,000 for non-residential land and properties
The rate of SDLT you'll have to pay is different depending on whether it is residential, a second home or buy-to-let, or whether you're a first-time buyer.
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