HOUSEHOLDS could see their finances affected in a number of ways this month.
Ranging from bill hikes to getting 'breathing space' on problem debts, we explain what it means for the cash in your wallet.
It comes as households have also had to get used to 19 new laws and financial changes that came into effect last month 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 eight major changes set to hit this month, and important dates for your diary.
1. Sky price hike
Sky home phone customers will see hikes of up to £24 a year from this month onwards.
The price changes came into force over the long weekend on 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.
How to find a better landline deal
NOT happy with your current home phone deal?
If you’re outside the minimum term of your contract then you won't need to pay a cancellation fee – and you might be able to find a cheaper deal elsewhere.
But don't just switch contracts because the price is cheaper than what you're currently paying.
Take a look at the set-up costs and whether there are any offers for evening and weekend calls.
It's worth using comparison websites, such as MoneySupermarket and uSwitch.com to find the best deals.
If you’re happy with your provider then it might be worth using your research to haggle a better deal.
However, the standard price of the Sky Talk Anytime Extra will now 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 Uswitch and ComparetheMarket 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 have also been hit with price hikes.
Customers will be hit with a 1.4% increase to their monthly bills, starting from this month.
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 Apple iPhone 12 contract for £68 a month, you’ll be paying 95p more a month, which is roughly £11.42 a year.
Three has been contacting customers about the changes since March this year.
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 this month.
Millions of workers will be paid early by employers if their usual pay day falls on the bank holiday Mondays.
The first bank holiday Monday on May 3 has already been and gone, but the next one is on May 31.
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 this month due to the bank holidays.
For example, households who get tax credits and who would expect to be paid on the next bank holiday – which is May 31 – will instead be paid on the last working day before this.
It means the payments will arrive in people's bank accounts on Friday, May 28.
All other benefit payments like PIP and ESA as well as state pension payments are also expected to follow the same changes.
How to contact the DWP for help
WHAT number you call depends on what type of benefit you need help with.
Universal Credit:
- Call for free: 0800 328 9344
- Welsh speaking: 0800 012 1888
- Those with hearing problems can textphone on: 0800 328 1344
Lines are open from 8am until 6pm, Monday to Friday excluding bank holidays.
Child benefit:
- Call for free: 0300 200 3100
- Outside UK: +44 161 210 3086
You'll need your National Insurance number or child benefit number with you when you call.
Lines are open Monday to Friday from 8am until 8pm and on Saturdays from 8am until 4pm.
Tax credits:
- Call HMRC for free: 0345 300 3900
- From outside the UK: +44 2890 538 192
Lines open from 8am until 6pm Monday to Friday and 8am until 4pm on Saturday.
The helpline isn't open on bank holidays.
Other benefits:
- Call for free: 0800 328 9344
- Welsh speaking: 0800 328 1744
- Textphone: 0800 169 0314
Lines open 8am until 6pm Monday to Friday excluding bank holidays.
This also applied to the first May bank holiday on May 3, which was yesterday.
It meant if you were expecting to receive the money on May 3, you would have got it on the last working day before the bank holiday – April 30.
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 remaining May bank holiday on May 31.
The government's Coronavirus Jobs Retention Scheme (CRJS) currently covers 80%, up to £2,500 a month, of worker wages.
However, the upcoming bank holiday 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% on May 31.
You will have already enjoyed this pay boost yesterday, as May 3 was a bank holiday.
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 today (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.
Who will be eligible for the scheme?
THE government is yet to release the full guidance, but below’s what we know so far.
To be eligible for breathing space, individuals would have to:
- Access debt advice
- Be assessed as being in problem debt by a debt adviser
- Not have entered in breathing space in the previous 12 months
The only exception is those receiving NHS mental health crisis treatment – they would be able to get breathing space anyway.
The government has defined being in "problem debt" as having difficulty paying their debts.
You also need to be in such financial difficulty that you have a realistic chance of entering an insolvency or debt management plan.
The scheme applies to a wide range of debts including council tax arrears, personal tax debts and benefit overpayments, as well as credit cards and loans.
During a breathing space period, households will receive professional debt advice to find a long-term solution to their financial difficulties.
If you don't keep up with your debt repayments where possible over the breathing space period or you don't seek debt help, it may be cancelled.
Only those who are receiving NHS treatment for mental health when they apply to the scheme will continue to be protected even if they don't seek professional debt advice.
You can only apply for breathing space if you seek debt advice from a debt adviser.
Organisations like StepChange or the National Debtline will be able to help you.
You can apply for one from today.
7. Tesco Clubcard points vouchers expire
Tesco has around 19million Clubcard members who could have vouchers expiring on May 31.
You could lost out on hundreds of pounds if you don't use them before the end of the month.
If you're a Tesco Clubcard member, you can earn points by spending in store, at the supermarket's fuel stations, or using your Tesco debit or credit card.
You collect one point for every £1 spent (or one point for every £2 on fuel), so something like 150 points, nets you a £1.50 voucher.
Then every three months Tesco sends your points as vouchers.
Tesco has been urging customers to check their accounts for any vouchers they may have overlooked which are expiring at the end of the month.
Last year, the supermarket said the amount of vouchers that go unused was equivalent to £17million.
8. Last chance to get £1 MOT from Halfords
Drivers have until May 21 to redeem a voucher that can get them an MOT from Halfords worth £40 for just £1.
The retailer is offering free MOTs to customers as long as they bought any item in store or online between March 25 and April 19.
This means if you didn't buy something from Halfords in between those dates, you won't be eligible for the deal.
You will have been sent a voucher to your email address when you bought your item either in store or online from the retailer.
The voucher contains a unique code – which you'll need to have handy for these next steps.
Head to Halford’s website, click on the menu on the left-hand side of the page and select the MOT (or MOT & Service) tab.
Then, select the MOT option which is worth £39.85 – or click here.
You can then book a slot at your local Autocentre.
When you get to the checkout, enter your unique code in the “promo code” box, and you’ll get your MOT for free.
You have until May 21 to redeem the voucher – so make sure you don't get caught out.
Meanwhile. we explain how you can save THOUSANDS of pounds by giving your finances a makeover.
For more guides, we've rounded up eight Martin Lewis money-saving tips that could save you £9,243.
And we've also rounded up 16 tips to slash your supermarket shopping bill by HUNDREDS of pounds a year.
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