March 2025 will bring several financial changes affecting benefit payments, travel costs, energy prices, and tax policies. With the Household Support Fund ending, legacy benefits transitioning to Universal Credit, and rail fares increasing, it is important to stay informed.
From energy support schemes to interest rate updates and inflation reports, here is a detailed breakdown of the 12 key financial changes to watch out for this month.
Rail Fare Increases
Train travel costs have increased, with regulated rail fares in England and Wales rising by 4.6 percent. This includes season tickets, anytime day, off-peak, and super off-peak tickets. Additionally, railcards have increased by five pounds, adding more costs for frequent travelers.
Although the government states this is the lowest increase in three years, unregulated fares set by train companies are also expected to rise.
Premium Bond Winners
March’s Premium Bond winners will be revealed on March 3. Premium Bonds are savings accounts where investors do not earn interest but instead have a chance to win tax-free cash prizes between twenty-five pounds and one million pounds.
The current prize fund rate is four percent, and the odds of winning stand at twenty-two thousand to one per one pound bond. The winners are selected by ERNIE, the Electronic Random Number Indicator Equipment.
Bank of England Interest Rate
The Bank of England will announce its new interest rates following the February rate cut. Currently, the base rate stands at four point five percent, affecting both borrowing and saving rates.
If the rate decreases, mortgage repayments may become cheaper, but savings account interest rates will also drop. If the rate increases, mortgage costs will rise, but savers could see better returns.
Ofgem Standing Charge Consultation
The energy regulator, Ofgem, will conclude its consultation on standing charges by March 20.
Ofgem is considering requiring all energy suppliers to offer tariffs with no or lower standing charges, which could bring much-needed relief to households struggling with energy costs.
Consumer groups, charities, and energy suppliers have been invited to share feedback before the deadline.
Inflation Update
The Office for National Statistics will release the latest inflation figures on March 26. This report measures how much prices have changed over time.
Previously, inflation rose to three percent, the highest level in ten months. A further rise could mean higher costs for essentials, while a decline may indicate relief for households.
Spring Budget Announcement
Chancellor Rachel Reeves will deliver the Spring Budget on March 26, outlining government spending and tax policies.
Possible announcements may include tax threshold changes, as there is speculation that the freeze on tax thresholds may extend beyond 2028. There may also be potential changes to cash ISA allowances.
As this is the only major fiscal event of the year, businesses and families should prepare for any tax or spending changes.
Household Support Fund
The Household Support Fund, which provides financial aid to low-income households, will end on March 31. The fund, available through local councils, has helped struggling families with cash grants, supermarket vouchers, and energy bill assistance since October 2021.
This could leave vulnerable households without extra financial support, making it important for those in need to apply before the deadline.
Cold Weather Payment Scheme
The Cold Weather Payment Scheme, which grants twenty-five pounds to eligible low-income households whenever the temperature drops to zero degrees or below for seven consecutive days, will end on March 31.
Those who qualify receive payments automatically, but if you did not receive yours, contact the Department for Work and Pensions immediately.
Universal Credit Migration
Five legacy benefits are being phased out, and affected individuals must transition to Universal Credit by March 31 to avoid interruptions in payments.
The impacted benefits include working tax credit, child tax credit, income-based jobseeker’s allowance, income support, and housing benefit for those under pension age.
If you have not applied for Universal Credit yet, you are advised to do so immediately or contact the Department for Work and Pensions for assistance.
Stamp Duty Relief
Stamp duty relief will end on March 31, with tax rates reverting to previous levels.
If you are not a first-time buyer, you will pay stamp duty on homes above one hundred twenty-five thousand pounds, which was previously two hundred fifty thousand pounds.
First-time buyers will only pay stamp duty on homes above three hundred thousand pounds, down from four hundred twenty-five thousand pounds.
If you are planning to buy a home soon, completing your purchase before March 31 could save you thousands in tax costs.
Free Childcare Application
To receive free childcare in April, parents must apply by March 31. The scheme offers fifteen hours per week for children aged nine months to two years and thirty hours per week for children aged three to four years.
If you are starting work or returning to work between February 1 and April 30, you can still apply by March 31. Visit the government website for more information.
Winter Fuel Payment
The Winter Fuel Payment, which provides up to three hundred pounds for pensioners to help cover energy bills, must be claimed by March 31 if you have not received it automatically.
If you live in the United Kingdom and qualify, the payment is usually sent automatically. If you live abroad, you must submit a claim and prove a strong United Kingdom connection.
If you believe you were eligible but did not receive payment, contact the Winter Fuel Payment Centre before the deadline.
Final Thoughts
March 2025 will bring significant financial changes that could affect millions of households across the United Kingdom. From higher rail fares and stamp duty increases to Universal Credit migration deadlines and energy support ending, now is the time to prepare.
To stay financially secure, consider checking if you need to apply for Universal Credit before March 31, reviewing travel costs if you regularly commute by train, ensuring you receive any energy support payments before schemes end, and applying for free childcare if you are eligible.
By staying informed and proactive, you can navigate these changes smoothly and avoid financial surprises.
FAQs
When will the Household Support Fund end?
The Household Support Fund will end on March 31, 2025.
How much have rail fares increased?
Regulated rail fares in England and Wales have risen by 4.6 percent.
What is the deadline for Universal Credit migration?
People on legacy benefits must apply by March 31, 2025.
When is the Spring Budget announcement?
Chancellor Rachel Reeves will deliver the Spring Budget on March 26, 2025.
How do I claim Winter Fuel Payment?
Call the Winter Fuel Payment Centre to submit a claim before the March 31 deadline.
