Households across the UK now face higher bills, ranging from energy to transport and council tax costs.
The news of yesterday’s hikes were no April Fool’s joke as millions of Brits brace themselves for across-the-board increases in what’s been dubbed as ‘Awful April’.
Coinciding with the new financial year, the exact amount that households will need to shell out in extras will vary depending on where they live and their personal circumstances. However, despite an increase in the minimum wage and in some benefits, budgets are expected to be squeezed this spring.
Here we highlight what bills Brits can expect to increase as well as shine a light on what support is available to those struggling to manage costs.
1. Energy Bills
Energy bills for a household using a typical amount of gas and electricity will go up by £111 a year from April 1.
The increase will bring annual energy costs to £1,849.
Energy regulator Ofgem has said it has increased the energy price cap because of higher wholesale costs and inflation.
Set every three months, the energy price cap limits the amount suppliers can charge per unit of energy used. However, the cap doesn’t cover the total bill which means the more you use, the more you’ll pay.
Ofgem has suggested that people consider switching to a fixed tariff if they are concerned about financial stability.
People on a fixed tariff aren’t affected by the energy price cap, however, if prices drop again after three months those who fixed could be stuck at a higher rate.
2. Water bills
Households in England and Wales can expect an average increase of £10 per month on their water bills.
Water companies have said the price hike is necessary to invest in infrastructure improvements, including sewage, and to build more reservoirs,
However, it’s important to know that price rises in England and Wales will vary per supplier. Anyone concerned should check with their supplier to find out how much extra they’ll need to pay each month.
Scottish residents will also see an almost 10% increase on water bills.
3. Council tax
Local authorities across the nation now have the power to increase council tax rates.
In England, councils responsible for delivering social care can increase council tax up annually by up to 4.99% without trigger. Smaller councils without social care duties can increase rates up to 2.99%.
However, residents in Birmingham, Bradford, Newham, Somerset, Trafford and Windsor and Maidenhead could face increases beyond the 4.99% cap in 2025-26.
In Scotland, council tax rates are increasing after decades of limited increases or tax freezes.
The Scottish government will offer councils an extra £1bn over the next year to help reduce the scale of any rise, however, some residents could still see an increase of 10%.
People living in Wales could see council tax rates spike by up to 15% in some areas, with council leaders saying more money is needed to support local authorities.
The situation is slightly different in Northern Ireland. The nation uses a domestic rates system rather than council tax but all council’s have announced higher district rate increases over the next year.
4. Broadband, TV licence and phone
Mid-contract rises are expected for customers of a number of different broadband and mobile companies.
According to USwitch, rises this month could add an average of £21.99 a year to bills for those on inflation-lined contracts and up to £42 a year for the newer pounds and pence plans that are subject to fixed increases.
If you’re unsure what type of contract you’re on, you should check emails and paperwork from your providers.
Anyone concerned about the cost of their broadband or phone following the increases should consider switching when out of contract. Lower costs may also be available for bundle packages that include TV and internet services.
Many broadband providers also offer social tariffs designed to hep those on benefits access the internet at a lower price each month.
The cost of a TV licence will also go up by £5 to £174.50. This follows a £10.50 last April.
Don’t forget if you’re over 75 and you get pension credit, or you live with a partner who does, you can apply for a free TV licence here.
You may also be eligible for a £7.50 licence if you live in residential care or sheltered accommodation, while those registered blind or living with someone who is can get a 50% discount.
5. Stamp duty
House buyers in England and Northern Ireland will see changes to stamp duty.
Stamp duty is the tax you pay when you buy a property over a certain value. How much you pay is calculated based on the purchase of your home.
The current ‘nil rate’ brand, which is the rate you start paying, for first time buyers will reduce from £425,000 to £300,000.
0% on the first £300,000
5% on the remaining £200,000
Total amount due: £10,000
Other home buyers will also see a reduction from £250,000 to £125,000.
What to do if you’re worried about price hikes?
If you’re worried about falling victim to ‘awful April’ it’s important to seek support as soon as possible.
Speak to your providers if you’re concerned you’ll be unable to manage your payments and see if there’s any other payment options available.
If you’ve missed any payments, they may agree to a repayment plan to help you get back on track.
Alternatively, you might choose to speak to a debt advice company, like UK Debt Expert, to find out what options are available to you.
