Starting April 1, essential bills in the UK, including council tax and broadband, will see significant increases. Despite these hikes, government measures like the rise in the National Living Wage and the introduction of British Savings Bonds aim to provide some financial reprieve.
Starting April 1, households across the UK are facing a significant rise in essential bills such as council tax, road tax, broadband, mobile, water bills, and even the cost of stamps. Council tax bills are projected to increase by an average of £106, making the bill for an average Band D property rise to £2,171. Water bills for households in England and Wales are expected to see a 6% increase, translating to an additional £27 annually. Mobile and broadband bills are also anticipated to surge by an average of 7.9%, which could mean paying approximately £27.19 more for broadband and £24.23 more for mobile bills each year. Subscription television services from providers like Virgin Media and Sky are set to raise their prices, with the annual cost of a TV Licence increasing to £169.50. On a positive note, the average household energy bill is expected to decrease by 12.3% to its lowest level in two years, following a reduction in the price cap by Ofgem.
Households have been advised to explore ways to reduce expenses, such as switching broadband and mobile providers and checking eligibility for council tax reductions. Despite the upcoming bill increases, from April 6, the start of the new tax year, several government measures are set to provide financial relief. About 170,000 families will be spared the high income child benefit charge due to an increase in the threshold from £50,000 to £60,000. The launch of British Savings Bonds will offer guaranteed returns over three years for investments between £500 and £1 million. Changes to Individual Savings Accounts (Isas) will allow multiple subscriptions within the same year, and the state pension will see an 8.5% increase.
Additionally, national insurance rates for employees and the self-employed will be reduced, although unchanged thresholds could lead to higher tax brackets for some individuals. Workers aged 21 and above will also benefit from an increase in the National Living Wage to £11.44. These changes aim to lessen the financial burden on households and offer better savings and income support amidst rising living costs.
