Householders are set to see some major changes in their finances in April - here's a list of things to expect.
Many will see changes to their benefit payments and an increase in wages. However, utility bills such as gas, electricity, water, and broadband are set to go up.
In addition, income tax and council tax will be affected, reports the Manchester Evening News. Here, we have listed all the key financial changes and dates for April 2023.
Read More: Martin Lewis issues energy warning to anyone hoping to slash their gas and electricity bills
End of Help to Buy scheme - April 1
Parts of the help to buy scheme, which was to help first-time buyers for houses, will come to an end in England. It initially provided extra financial help for those concerned with rising house prices and interest rates.
Increase in energy bills - April 1
The energy bill support scheme will come to an end, which will result in a monthly increase of roughly £70 on average. It's important to note that this has been buffered somewhat by the energy price guarantee which will remain in place.
Increase in council tax - April 1
The large majority of local authorities in the UK will raise council tax by just under 5%. For an average Band D property, this will result in a £100 increase.
Minimum and living wage increase - April 1
The National Living Wage and National Minimum wage will rise for workers across the country. You will receive one of the following increases depending on your situation:
- National Living Wage - Increased to £10.42 (annual increase of 9.7 per cent)
- 21-22-year-old rate - Increased to £10.18 (annual increase of 10.9 per cent)
- 18-20-year-old rate - Increased to £7.49 (annual increase of 9.7 per cent)
- 16-17-year-old rate - Increased to £5.28 (annual increase of 9.7 per cent)
- Apprentice Rate - Increased to £5.28 (annual increase of 9.7 per cent)
- Accommodation Offset - Increased to £9.10 (annual increase of 4.6 per cent)
Rise in water bills - April 1
Households across the country will face the largest increase to water bills in almost 20 years. According to Water UK, an increase of 7.5% would result in an average price rise of £448 a year.
It means customers will pay around £1.23 per day on average - an increase of 8p per day or an average £31 more when compared to last year's charges.
Increase to broadband and mobile bills - April 1
Millions of broadband and mobile phone customers can expect to face a monthly rise of 14% form April. This is based on January's consumer price index (CPI) or the retail price index (RPI) which was recorded at 10.5% and 13.4%.
BT, EE, Plusnet and Vodafone broadband contracts allow prices to go up by CPI plus 3.9%. At TalkTalk, it is CPI plus 3.7%, while Shell Energy can add CPI plus 3%. Sky and Virgin Media contracts allow mid-contract price increases but they do not use the same pricing formula as others.
Changes to maternity/paternity pay and statutory pay - April 2
Statutory maternity, paternity, adoption, shared parental, and parental bereavement pay will increase from £156.66 per week to £172.48 per week, according to the DWP. Meanwhile, statutory sick pay will increase from £99.35 per week to £109.40 per week.
Gender Pay Gap Report - April 4
Organisations that include 250 or more people will be required to publish a gender pay gap report by April 4. Meanwhile, businesses are being asked to provide a supporting narrative to explain any pay differences and how they will tackle them.
Income tax - April 6
The 45% additional rate of income tax threshold is being cut from £150,000 to £125,140, which means more higher earners will pay higher tax.
The personal allowance will remain frozen at £12,570, as will the 20% tax threshold from £12,571 to £50,270. The inheritance tax nil rate band remains at £325,000, and the residential nil rate band £175,000.
Employment Tribunal changes - April 6
The limit on compensatory awards for unfair dismissal will increase from £93,878 to £105,707.
Increase to benefits - April 10
Many benefits will receive a rise of 10.1%. This includes Universal Credit, Housing Benefit, Pensions Credit, Disability Allowance, and Personal Independence Payment.
Cost of living payment - April 25
Millions across the country will begin receiving the first cost of living payment from April 25. This payment will be worth £301 and will automatically be paid to eligible claimants - so there is no need to apply.
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