After the conclusion of January, many are now rejuvenated with their finances post-payday. However, February brings about several financial adjustments to take note of, such as an increase in alcohol prices and a reduction in savings rates for Nationwide customers.
For individuals who are self-assessment taxpayers and missed the January 31 deadline, immediate £100 fines are being issued starting today. Additionally, February will witness the routine announcements regarding inflation and interest rates.
Alcohol duty is set to rise by 3.66% from February 1, aligning with RPI inflation. This increase translates to 11p more for a bottle of Prosecco with 11% ABV, 14p for a bottle of red wine with 14.5% ABV, and 38p for a bottle of gin with 37.5% ABV, according to the Wine and Spirit Trade Association (WSTA).
For those who failed to file their self-assessment taxes by January 31, a £100 fine will be imposed as of February 1. Subsequently, fines will escalate to £10 per day, up to a maximum of £900, for continued non-compliance after three months. After six months, a penalty of 5% of the tax owed or £300, whichever is higher, will be levied, with a repeat of the process after 12 months. It is essential to settle any outstanding taxes by January 31 to avoid accruing interest on overdue payments.
The initial Bank of England meeting of 2026, scheduled for February 5, will determine the future course of interest rates. Currently standing at 3.75%, the base rate influences borrowing costs and savings interest rates. The Bank of England convenes every six weeks to review and set the base rate.
Nationwide intends to reduce rates on 36 of its savings accounts effective February 10 in response to the Bank of England’s base rate adjustment to 3.75%. Various products, including easy-access accounts, ISAs, and children’s savings accounts, will be impacted.
Sky Mobile plans to raise prices from February 14, with most customers facing a £1.50 monthly increase, totaling an annual rise of £18. Some individuals may experience a higher or lower adjustment in their bills.
The latest inflation data from the Office for National Statistics (ONS) is set to be disclosed on February 18. Inflation, currently at 3.4%, measures the fluctuation in prices over time, with the Bank of England targeting a 2% inflation rate.
As of February 23, customers experiencing delays or failures in smart meter installations could receive £40 in compensation. Eligibility for compensation includes instances where waiting time exceeds six weeks for an appointment, an installation fails due to a supplier fault, or a supplier fails to provide a resolution plan within five working days post-reported issue.
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