April Price Surge: Seven Bills Set to Rise and Impact Your Wallet
As April ushers in notable increases in various essential bills, experts are warning about the potential strain on household finances, despite rising minimum wages that outpace inflation. Starting from April 1, households across the UK will face hikes in their water and energy bills, council tax, vehicle tax, telecommunications tariffs, TV licence fees, and changes in stamp duty regulations.
Water Bills: In England and Wales, households will see their water bills rise by an average of £10 per month. For example, Southern Water’s rate will increase by 47% to £703 annually, while Anglian Water will see a 19% increase to £626. In Scotland, water bills are set to rise by nearly 10%, with funds allocated for infrastructure improvements affected by climate change. Northern Ireland households, however, generally do not pay for water.
2. Energy Bills: The energy price cap has been adjusted, raising the average household bill by £111 to £1,849 per year due to rising wholesale costs and inflation. Ofgem recommends switching to fixed tariffs for pricing stability, while standing charges for gas are rising while electricity standing charges may see a decrease depending on the region.
3. Council Tax: Local authorities in England can increase council tax by 2.99% or up to 4.99% if responsible for social care. Certain councils may bypass these limits. Scotland’s council tax is rising, with local authorities given a £1bn fund for easing increases. In Wales, council tax could soar by up to 15% in some areas.
4. Vehicle Tax: Vehicle tax for cars registered after April 2017 will increase by £5 to £195 annually, with new electric vehicle regulations introducing modest taxes from 2025.
5. Telecommunications: New regulations require telecoms to transparently inform customers about price rises in pounds and pence. Customers who began contracts before specific dates will face increases based on inflation rates, with mobile bills rising by approximately 6.4% and broadband rates by around 7.5%.
6. TV Licence Fees: The cost of a TV licence is increasing by £5 to £174.50 for standard fees and by £1.50 to £58.50 for black and white TVs.
7. Stamp Duty Changes: The threshold for stamp duty will lower from £250,000 to £125,000 for buyers in England and Northern Ireland, with first-time buyers now facing the tax on properties above £300,000.
Additionally, there’s a freeze on income tax and National Insurance thresholds until 2028, leading to more individuals falling into higher tax brackets due to rising wages, a situation referred to as a stealth tax.
These series of price hikes are part of a wider trend affecting consumers as they adjust to higher living costs.