PREPARE for the New Year by working out what big personal finance changes in 2022 will mean for your pocket.
Household bills, wages and pensions will be different in 2022, and you can expect to be affected by tax hikes and prices in the shops going up.
Get clued up one what changes could impact your finances next year
It pays to be aware of what changes will impact you, as they could affect your budget and you don’t want to be caught out by nasty surprises.
You also need to know about positive changes so you can make sure you’re getting everything you’re entitled to.
These are the dates you need in your diary so you’re clued up on all the financial changes coming in 2022.
National Living Wage
Low paid workers will get a pay rise in April when the National Living Wage increases.
It will jump to £9.50 per hour for over 23s, rising from the current rate of £8.91.
This means someone aged 23 or over on the minimum wage working a 37.5 hour week will see their weekly earnings increase from £334.13 to £356.25.
That could mean an annual pay rise of more than £1,000, from £17,374.76 to £18,525.
Other age groups will see a similar increase to their salary next year, although the rate for under-23s is called the National Living Wage.
Workers aged over 21 will get £9.18, up from £8.36, and those between 18 and 20 will see their hourly rate rise from £6.56 to £6.83.
Under 18s will be paid £4.81, up from £4.62, and apprentices will also get £4.81, rising from £4.30 an hour.
Energy Price Cap
Energy prices have soared this year and it looks like bills are set to rise even more in 2022.
Consumers should brace themselves to pay hundreds of pounds extra from April 2022 as the energy price cap is raised.
Experts are divided on how much bills could go up by, but estimates range from £150 to £400.
The latter would take the average annual costs for someone on a default tariff from £1,277 to £1,677.
The amount will be announced in February before coming into force from April.
“The energy price cap in April is based on price increases happening at the moment, and as energy prices have leapt far higher there’s no doubt that households are in for another increase,” Laura Suter, head of personal finance at AJ Bell.
“Some estimate the rise will be around £400, which would take the average annual costs for someone on a default tariff from the current £1,277 to £1,677 – and it will be even higher for those …….