It may be April Fool's Day, but there's not much to laugh about as every household in the UK woke up to hikes in essential bills such Council Tax and water, with more to follow later in the month.
The planned increase in the Energy Price Guarantee was scrapped in the Spring Budget, with the cap for the average household remaining at £2,500 until July, but family budgets will still be squeezed by increasing costs, most of which kick in from today, April 1.
Research from Comparethemarket.com has revealed that households are braced to find an extra £200 extra per month to cover the hike in bills and families with children expect to need an additional £238 per month. The figures came from the comparison website's Money Action Index, which tracks the proportion of households who are concerned about the rising cost of living and are taking action to get their finances under control.
Read more: DWP cost of living boost announced for millions of families from today
The rises may be balanced for some by increases to Department for Work and Pensions (DWP) benefit payments and the state pension, which rise by a record 10.1% from April 10, the biggest single rise since 1991.
Here is the full list of increases due this month:
Mobile, TV and broadband
Telecom companies are allowed to increase prices in line with inflation and around 4% extra on top of this, which this year adds up to an eye-watering 17.3% possible hike in your broadband and/or mobile phone bill. Some providers raised their prices from March 31, but the majority are staring on April 1.
You can find out when your bill will go up and steps you can take to pay less here.
Energy bills
Chancellor Jeremy Hunt cancelled the April 1 increase to the Energy Price Guarantee from £2,500 to £3,000 in his Spring Budget on March 15, but households will still feel the chill of the Government's £400 energy bill support scheme (EBSS) coming to an end.
Council Tax
Council Tax increases from today, with how much you pay depending upon where you live. This year, local authorities have been allowed to increase their bill by up to 5% without a referendum, after Jeremy Hunt last year announced the increase from 2.99%. Research by County Councils Network (CCN) found that 84 out of the 114 local authorities in England have increased their tax by the full 5%, but in the North East, only County Durham has done so.
You can find out how much you will pay and check you're not paying more than you need to here.
Water bills
Northumbrian Water bills rise by 7.5% or an average of £29 a year. The 2.7m customers in our region now pay an average bill of £391 for their water and sewerage services in 2023/24, compared to the £362 in 2022/23. But it's not all bad news - the overall cost of the bill remains the second lowest in the UK, with only Hafren Dyfrdwy customers in Wales paying less, at £372 per year.
Find out more here.
Benefits
Most DWP working-age benefits increase every April, in line with the previous September's CPI inflation rate, which was 10.1% in September 2022. It was uncertain whether the Government would commit to such a large increase of this size, but the Chancellor confirmed the new rates, which are effective from April 10, in the Autumn Statement.
You can see what your new rates, including for Universal Credit, will be here.
State pension
The state pension has risen by 10.1% after the return of the triple lock, which guarantees the state pension rises by the highest of average earnings, CPI inflation and 2.5%. This was downgraded to a double lock last year to avoid a record 8% increase after the pandemic pushed earnings growth higher as workers returned from furlough. The full state pension will rise from £185.15 to £203.85 per week and the basic state pension from £141.85to £156.20 per week, both from April 10.
Find out if you can claim pension credit here.
Prescriptions
From today, the price of an NHS prescription will go up 30p from £9.35 to £9.65 for each medicine or appliance dispensed. Last year - for the first time in more than 10 years - prescription charges were frozen to help people in the face of rising bills, but the Government announced that this year, prices would rise by 3.2%.
Stamps
A first class stamp is to cost more than £1 following an inflation-busting increase, Royal Mail announced last month. From April 3, the price of a first class stamp is set to rise in price by 15p, from 95p to £1.10, with a second class stamp going up from 68p to 75p. The 16% increase is way above the current level of inflation of 10.1% and follows the 10% increase from last year. Royal Mail has said the decision to up the price was made after "careful consideration" and in light of the 25% drop in letter volumes since the Covid-19 pandemic.
Find out when you need to have used your old stamps up by here.
Comparethemarket's research found that more than one in five households found it difficult to pay bills in recent weeks – rising to 61% of households with children at home - and one in five households borrowed money from their parents to help with the cost of living – typically borrowing £232. And 59% of households who are worried about rising costs have not taken steps to bolster their finances.
Mark Baillie, of Comparethemarket, said: “Millions of households will be concerned about a potential bill shock in April. Our figures show household bills already jumped by £1,316 in 2022, so further increases will mean many will struggle to make ends meet. Lots of families with children at home are now having to rely on parents and grandparents for additional financial support. ”
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