This month UK households are bracing for a series of significant bill increases, a phenomenon that has been dubbed “Awful April.”
These rising costs span various essential services, utilities and taxes, including energy, water, council tax, and telecommunications.
While there is nothing we can do to prevent these hikes, we want to ensure that you understand these changes and begin to adopt strategic measures to help mitigate their financial impact.
Energy Bills
This is the big one. Effective April 1, Ofgem’s energy price cap rises yet again, this time by 6.4%. This hike will increase the typical annual energy bill from £1,738 to £1,849 – an additional £111 per year.
What can you do?:
- Evaluate fixed tariffs: If you have not already made a switch, consider locking in a fixed energy deal to shield against future price fluctuations. Read more about the pros and cons of switching to a fixed rate.
- Enhance energy efficiency: Implement measures such as adjusting boiler flow temperatures, installing energy-efficient appliances, and improving home insulation to reduce consumption.
- Stay on top of your meter readings: Send your energy provider monthly meter readings for accurate bills. See our guide to accurate readings.
Water Bills
Along with energy, water charges are set to surge by an average of 26%, adding approximately £123 to annual household expenses. This is the most substantial increase since the industry’s privatisation in 1989.
What can you do?:
- Install a Water Meter: Paying for actual usage can lead to savings, especially for smaller households.
- Conserve Water: Adopt habits like taking shorter showers, fixing leaks promptly, and using water-efficient fixtures.
Council Tax
Local authorities are raising council tax bills. Most households in England will face the maximum increase of 4.99%, with some areas experiencing hikes up to 9.99%. The average Band D property will see an increase of £109, bringing the annual bill to £2,280. This will push a lot of people into a new level of financial precariousness – especially single parents.
What can you do?:
- Check for Discounts: Single occupants, students, and individuals with disabilities may be eligible for reductions.
- Challenge Your Band: If you believe your property is misclassified, you can appeal for a reassessment.
- Spread the cost: While usually billed over 10 months, you could request your council to spread the cost over 12 months instead.
Telecommunications
Broadband and mobile phone providers are implementing mid-contract price increases, often linked to inflation rates plus an additional percentage.
What can you do?:
- Review Contracts: Examine terms for clauses permitting price hikes and consider renegotiating or switching providers when your contract is up.
- Seek Competitive Deals: Shop around for better rates, and leverage comparison tools to find cost-effective plans.
TV Licence
The annual TV licence fee increases by £5, reaching £174.50.
What can you do?:
- Assess Necessity: Determine if you require a licence based on your viewing habits; for instance, it’s not needed solely for streaming non-BBC content.
- Explore Payment Options: Spreading the cost through monthly or quarterly payments can ease financial strain.
Other Increases
- Stamp prices: The price of first- and second-class stamps will increase on 7 April: a first-class stamp will cost 5p more, an increase of 3%, to £1.70, while the second-class service will increase by 2p, or 2.4%, to 87p. (It is worth stockpiling stamps now before the increase comes in.)
- Vehicle excise duty (car tax): Rates for cars, vans, and motorcycles are rising in line with inflation. Notably, electric vehicles registered after April 1 will no longer be exempt and will incur standard charges. (Although you can get an extra year tax-free with this sneaky strategy).
- Stamp duty: Thresholds are being reduced, meaning homebuyers will pay more tax on property purchases.
Are you missing out on benefits?
By proactively addressing these impending increases and implementing cost-saving measures, UK households can better navigate the financial challenges posed by “Awful April.”
You should also think about whether there are any financial boosts you may be entitled to.
For example, two million eligible people are currently missing out on claiming Marriage Tax Allowance. If you or your spouse earn under the tax threshold of £12,570 you can transfer 10% of your tax-free allowance to your partner. (This benefit applies only to married couples so if you’re co-habiting or in civil partnerships, unfortunately you’ll miss out).
Claim your Marriage Tax Rebate now
The same goes for Pension Credit – a benefit for those over the state pension age that is worth, on average, £75 per week or £3,900 per year. It’s estimated that around 2.2 million pensioner households are eligible for this income boost – yet almost one million have not claimed it!
Read more about Pension Credit
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