As February 2025 begins, UK households must prepare for major financial changes affecting savings accounts, state pensions, energy bills, and online shopping fees. These updates could impact household budgets, so understanding them in advance will help people make better financial decisions this month.
1. eBay Introduces New Buyer Fees (February 4)
Starting Tuesday, February 4, eBay will introduce a new fee structure for buyers. While selling fees were previously removed, the online marketplace has now shifted costs to buyers instead.
- New fees: Buyers will now pay an extra 4% of the item’s cost plus a flat fee of 75p.
- Who is affected? All eBay users purchasing from private sellers.
This move aims to increase eBay’s revenue but may result in higher costs for online shoppers.
2. Santander Ends £150 Bank Switching Offer (February 5)
For months, Santander has offered a £150 cash reward for switching to its current accounts and savings accounts. This deal ends on February 5 at midnight.
- Extra benefits: Customers also received a linked savings account worth up to £235 a year and cashback of £240 annually.
- Final deadline: Anyone who switches on or after February 6 will no longer receive the £150 reward.
3. Bank of England Interest Rate Decision (February 6)
On Thursday, February 6, the Bank of England (BoE) will decide on interest rates.
- Current rate: 4.75% (held since December 2024).
- Potential outcome: Pressure is growing for a rate cut, which could lower mortgage repayments but also reduce savings interest rates.
- Inflation concerns: Rising energy and water bills may influence the decision.
4. Barclays Slashes Savings Interest Rates (February 13)
Following recent banking outages, Barclays will cut interest rates on its most popular savings accounts.
| Account Type | Old Rate | New Rate (Feb 13, 2025) |
|---|---|---|
| Everyday Saver | 1.51% | 1.26% (on balances under £10,000) |
| Rainy Day Saver | 5.12% | 4.87% (for Barclays Blue Rewards customers) |
Barclays customers are advised to switch to accounts offering better rates, as some ISAs still provide 3-5% returns.
5. Chase Cuts Savings Rates (February 19)
Online bank Chase will also lower interest rates on its Chase Saver account.
- Previous rate: 3.5%
- New rate (Feb 19): 3.25%
This reduction comes as Chase adjusts its tracking method, causing interest rates to fall. Customers may want to explore higher-paying savings accounts elsewhere.
6. Warm Homes Discount Deadline (February 28)
The Warm Homes Discount provides eligible low-income households with a £150 discount on energy bills.
- Eligibility:
- Low-income families
- Pension Credit recipients
- Some Universal Credit claimants
- Application deadline: February 28, 2025
If you haven’t received a letter confirming eligibility, contact the Warm Homes Discount helpline before the deadline.
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7. Ofgem Price Cap Announcement (February 25)
On February 25, energy regulator Ofgem will announce the latest energy price cap.
- Expected price increase: 3% rise (£47 extra per year for an average household).
- New price cap estimate: £1,791 per year (based on Cornwall Insight forecasts).
- Previous price hikes:
- October 2024: 10% increase
- January 2025: 1.2% increase
With energy prices rising again, fixed-rate energy deals may be a better option for many households.
FAQs
How will eBay’s new fees impact buyers?
Buyers will now pay an extra 4% + 75p per transaction when purchasing from private sellers on eBay.
Will the Bank of England cut interest rates in February?
There is growing pressure for a rate cut, but inflation concerns may prevent an immediate reduction.
When does Santander’s £150 switching bonus end?
The offer ends at midnight on February 5. Customers switching on February 6 or later will not receive the bonus.
Why is Barclays reducing its savings rates?
Barclays is adjusting rates following market trends, lowering savings interest from 1.51% to 1.26% on some accounts.
Can I still apply for the Warm Homes Discount?
Yes, but the deadline is February 28. Eligible individuals should check their letters or call the helpline.
What will Ofgem’s energy price cap mean for my bills?
Ofgem’s expected 3% increase will add around £47 per year to the average household’s energy costs.
What are the best savings accounts available in February?
Despite rate cuts from Barclays and Chase, some ISAs still offer 3-5% interest, with Trading212 exceeding 5%.
How can I reduce my energy bill before the price cap increase?
Consider switching to a fixed-rate energy deal now to lock in lower prices before April.
Conclusion
February 2025 brings seven major financial changes that will impact UK households. From new online shopping fees and bank rate cuts to energy bill hikes, staying informed can help individuals manage their finances effectively.
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