Householders are being warned about a series of changes coming in March that could have an impact on their finances.
Among the changes to look out for are a rise in train fares and some DWP benefits being axed for good. There will also be Chancellor Rachel Reeves’ Spring Budget to take note of.
Meanwhile, March will have a Stamp duty deadline, marking the last day to complete on a house purchase if you’re looking to avoid stamp duty costs. The tax is tiered, meaning you pay different rates on different portions of the property’s price. The Government increased the threshold at which homebuyers start paying SDLT in September 2022, reports BirminghamLive.
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Elsewhere, there may be changes in inflation and the Bank of England interest rate. Here is a summary of what to expect.
1. March 2 – Train fare hike
Rail fares will go up by 4.6% next March, the government disclosed alongside the budget – meaning they will rise above inflation for only the second time in 12 years. Meanwhile, the cost of most railcards will rise by £5, or almost 17%.
The increase has been set at 1% above retail prices index (RPI) inflation in July – which at 3.6% was substantially higher than the 2.2% consumer prices index (CPI) measure usually referred to by government. While Rachel Reeves made no reference to train fares in her budget speech, the government said the rise would be “the lowest absolute increase in three years”.
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2. March 20 – 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 currently at 4.5% after the Bank of England announced another cut during its last meeting in February. The base rate is what the Bank of England charges other banks and lenders – this then affects how much it costs you to borrow money.
3. March 26 – Spring Budget
Chancellor Rachel Reeves will deliver the spring Budget on Wednesday, March 26. The Chancellor has confirmed to the House of Commons that the Office for Budget Responsibility (OBR) has been commissioned for an Economic and Fiscal Forecast which will be published on 26 March, 2025.
This is in line with the Budget Responsibility and National Audit Act 2011 which requires the OBR to produce two forecasts each financial year. This will be accompanied by a statement to Parliament from the Chancellor.
The Chancellor remains committed to one major fiscal event a year to give families and businesses stability and certainty on upcoming tax and spending changes and, in turn, to support the government’s growth mission.
4. March 26 – Inflation update
The latest inflation data from the Office for National Statistics (ONS) will be released on March 26. Inflation is a measure of how prices have changed over time. In the latest update from the ONS, inflation was revealed to have risen to 3% – its highest level in ten months. At its highest point, inflation reached 11.1% in October 2022.
5. March 31 – Current Household Support Fund round to end
The Household Support Fund will end on March 31, 2025, after being extended multiple times. The Household Support Fund is a government fund that offers eligible households support with fuel, food and other essentials. The latest phase of the Household Support Fund covers the period from 1st October 2024 to 31st March 2025.
Liverpool Council, for instance, says: “We have allocated the Household Support Fund to those who need help most with food and energy costs, as detailed below. The council, or one of our partners, will contact eligible households directly, unless we have indicated below that you need to make an application.”
6. 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. If you were born before 23 September 1958 you could get either £200 or £300 to help you pay your heating bills for winter 2024 to 2025. This is known as a ‘Winter Fuel Payment’.
You may be eligible if you or your partner get certain benefits. You will not get the extra Pensioner Cost of Living Payment given in 2022 and 2023. It stopped in winter 2023. If you’re eligible, you’ll get a letter in October or November saying how much you’ll get.
If you do not get a letter but you think you’re eligible, check if you need to make a claim. Most eligible people are paid in November or December. You may be paid later if you’re waiting for a decision on another benefit, for example Pension Credit.
7. 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 and 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.
8. March 31 – Stamp duty deadline
The final day to complete a house purchase and avoid higher stamp duty rates is March 31. For the purposes of calculating Stamp Duty, the key date is the date of legal completion.
The date you exchange contracts, or the date you initially agreed a sale/purchase is not relevant. It is crucial to bear this in mind. So any transaction which legally completes on or after 1 April 2025 will be subject to higher rates of SDLT than those completing on or before 31 March. First-time buyers, home movers, and investors (or second property owners) will all be affected by the changes.
