Households will see essential bills rise including energy, council tax, water, broadband and mobile phone, food, TV licence and car tax from 1 April. Money Wellness, a debt and money advisory services, said the rises will be a real concern for millions of families.
Sebrina McCullough, external director at Money Wellness, said: “It’s important to check that you’re paying as little as possible ahead of the increases coming into effect.” Here are all the the bills that will increase next month and how you can avoid paying more than you need to.
Energy bills
The energy price cap will go up by 6.4% from next month, costing an average household that isn’t on a fixed-rate tariff £111 more a year. This will increase the total bill for a typical household on a variable-rate tariff to around £1,849 – 9.4% higher than this time last year. Around 26 million households will be affected.
Households are being advised to look at switching to a fixed price tariff if they can find a deal that’s 3% more than the Jan-Mar cap or 3% less than the Apr-Jun cap. Be aware that if you do fix and the price cap lowers, you will be paying a higher rate.
Water bills
Water bills will rise by 36%, increasing the average annual bill by £123. Further, smaller price rises are due over the next five years.
It may be worth installing a water meter as these can help lower bills by making people mover aware of their water usage. Keep an eye on how efficient you are with water as leaking taps will hike up your bill. Some water companies also offer social tariffs for some households.
Council tax bills
Most council will increase their bills by 4.99% – the maximum allowed – with just a handful choosing to freeze or opt for smaller rises.
Six councils – Bradford, Newham, Windsor and Maidenhead, Birmingham, Somerset and Trafford – have been granted permission to raise their bills by up to 10% because they need additional resources to keep “basic services running”.
It may be worth checking to see if you could be entitled to a discount on your council tax bill, as most councils will offer a 25% reduction for those living alone and possible exemptions if you are on a low income.
Broadband bills
Broadband and mobile mid-contract price hikes differ from provider to provider. Some providers, such as BT, EE and Plusnet, have already implemented increases, but the majority of price rises will kick in on 1 April.
On average, the bills of longstanding broadband and mobile customers will rise by 6.4%, a figure calculated by adding 3.9% to the CPI rate of inflation (2.5%). Those who signed broadband and mobile contracts more recently will likely see a fixed annual increase of £3-£3.50 per month instead.
There is not much you can do to lower your broadband costs unless you are coming to the end of a contract, but if you are having problems paying your bill, talk to your provider to see if they can offer you help
TV licences
TV licences will increase by £5 to £174.50 a year, You can claim a free TV licence if you’re 75 or older and claim Pension Credit or live with a partner who receives the benefit.
Car tax
Car tax is going up by £30 a year on average. Exactly how much will depend on your vehicle. If you are considering switching cars, then you can check the rate of tax you’ll pay on the Gov.uk website.
Food bills
Food inflation was at 2% in January but with average prices having more than doubled in the past three years, the weekly food shop continues to be a significant burden on many households. Experts are predicting food inflation of 3.4% in 2025.
One way to cut your food bill is to cut the amount of food waste, the LoveFoodhatewaste website has suggestions on how to reduce how much food you throw away.