**Five Major DWP and Financial Changes Set to Affect Millions in May**
As May begins, households across the UK should brace for a host of financial changes that may impact their budgets and planning. Among the most significant are updates to tax regulations, penalties for overdue tax submissions, and a much-anticipated £100 bonus for eligible Nationwide customers. The government and key financial bodies have multiple scheduled announcements throughout the month, each with the potential to influence personal finances.
One of the most notable changes taking effect immediately is NatWest’s acquisition of Sainsbury’s Bank. On 1 May, customers with personal loans, savings, or credit cards at Sainsbury’s Bank have seen their accounts transition to NatWest. This follows NatWest’s £2.5 billion acquisition deal. It is worth noting, however, that Sainsbury’s will maintain its presence in insurance and travel money services but has ceased issuing new loans, savings accounts, and credit cards. Account holders should follow communications from both banks to ensure a smooth transition.
In addition, those who failed to file their self-assessment tax return by the 31 January deadline now face further consequences. From the beginning of May, HMRC began imposing a £10 daily penalty for late submissions, which can accumulate to a maximum of £900. If the tax return still remains unsubmitted after six months, individuals risk an additional penalty of £300—or 5% of the unpaid tax amount, whichever is greater. This serves as a timely reminder to get tax affairs in order to avoid mounting fines.
On 21 May, the Office for National Statistics will reveal the latest inflation figures. This comes at a particularly interesting time: after peaking at over 11% in October 2022, inflation had decreased to 2.6% in the last update. Economic experts, however, have expressed concern that recent hikes in energy bills may push inflation higher once more. Many households and businesses are monitoring this announcement closely, as ongoing inflation can significantly erode purchasing power.
Perhaps most eagerly anticipated by Nationwide’s 16 million-strong member base is the potential confirmation of another ‘Fairer Share’ bonus. On 29 May, Nationwide is expected to announce whether it will issue a second round of £100 bonuses, following a bumper £2 billion profit. Last year, 3.85 million members benefited from this payout, providing a welcome boost during a period of economic uncertainty. Nationwide members are advised to watch for further updates regarding eligibility and payment dates.
Another key date to mark is the 31 May deadline for employers to provide employees with their P60 forms. The P60 is an important document summarising total income and tax paid over the previous tax year. This paperwork is particularly vital if you plan to apply for a mortgage, loan, or certain benefits, as it provides official proof of earnings and tax compliance. Employees yet to receive this document should contact their payroll department as a matter of urgency.
Aside from these primary events, consumers should also be aware of other developments. Spotify, for instance, has raised some of its monthly subscription charges, potentially affecting entertainment budgets. Meanwhile, Universal Credit payments have been increased in line with the latest inflation figures, offering modest relief for benefit recipients.
Ofgem’s forthcoming energy price cap announcement is another piece of key news. The update, covering the next three months, could mean a reduction in energy bills for millions, provided wholesale prices continue to ease. With energy costs still a major household concern, any downward adjustment to the cap would be welcomed, though the precise effect will depend on broader market trends.
Finally, applications have opened for free childcare for working parents with children aged nine months and above—an initiative designed to relieve pressure on working families. In summary, May is shaping up as a month packed with financial headlines. It is essential for individuals and families alike to stay informed, check their eligibility for bonuses and benefits, and keep a close eye on account changes and official correspondence to ensure they don’t miss out or fall foul of new rules.