Life is about to get a lot more expensive for many of us.
These ten key money changes are among those about to hit UK households in the wallet, The Mirror reports. Although the likes of a £150 council tax rebate may be of some help, most of the changes will only worsen the growing cost of living crisis.
Rises in energy bills and council tax are among the most well-known of the changes but there are a number of big changes coming to the cost of living. And whilst some can't be avoided, there are a number of things you may need to do to save costs or ensure you get the help you're entitled to.
Read more: Households urged to take a meter reading on Thursday
Meanwhile, the minimum wage will rise, while there will also be changes to the State Pension. But the small rises are unlikely to keep pace with skyrocketing new costs.
Here are the 10 changes you need to know about - and what you need to do to prepare for them.
Council tax rises - set up a direct debit
Council taxes are going up in the North East - there's a 3% hike coming in Newcastle while Northumberland residents' bill will go up by as more than 4%. The maximum rise councils can enforce is 5%, made up of a 2% council tax rise and an additional 3% for social care.
While this rise can't be avoided, if you pay council tax you should set up a direct debit before April to claim £150 from the Energy Rebate scheme.
The scheme sees eligible households in England in Council Tax Bands A-D properties receive a £150 energy rebate payment from their council from April this year. This includes those who already receive help with paying some or all of their council bill through local council tax support.
Coun Shaun Davies, chair of the Local Government Association, said: “Having a direct debit set up will mean councils can automatically pay the £150 energy rebate straight into your bank account. It is quick and easy to set up to pay council tax by direct debit via your council’s website.
“You can still get the money if you don't have a direct debit set up, but it could take longer as your council will have to contact you and then you'll have to make a claim."
Energy price cap rising - do a metre reading
Households are being urged to take a meter reading on Thursday, to make sure they don't pay more for their energy than they need to. Most families are all too aware that the energy price cap increase kicks in on Friday, April 1, but sending your reading to your supplier the day before will ensure that all fuel used to that point will be charged at the cheaper rate.
If you don't, the risk is that some of your energy will be charged on the new higher unit price, which is around £693 more expensive a year. If you have a smart meter, readings are usually supplied automatically once a month - but it's worth checking that a reading will be done on March 31 and take a manual reading if it isn't.
New minimum wage
Coming into force on April 1, the so-called National Living Wage is the minimum that employers must pay staff aged 23 and over. If you’re under 23, you are only entitled to the National Minimum Wage, which varies based on your age.
The living wage is currently £8.91 an hour – but it goes up to £9.50 from Friday. This means employees will receive 6.6% more in their pay packets, amounting to an extra £1,074 a year before tax.
Working out at around an extra £90 per month, it should happen automatically so there's not much you need to do - but you should check your pay slips to make sure you're getting the right amount from Friday.
Meanwhile, the minimum wage for people aged 21-22 is set to rise from £8.36 to £9.18 an hour. The Apprentice Rate will also slightly increase from £4.30 to £4.81 an hour.
Water bill changes - consider a water meter
Average household water and sewerage bills in England and Wales are set to rise by around £7 a year (1.7%) from April, but some residents could actually see their bills fall this year.
You may be able to save money on water by getting a meter - see who this could benefit, here.
Stamp prices going up - consider stocking up
If you're a regular stamp user it could be worth buying some in advance as prices will go up from April 1. However, don't get too many, as the digital barcode switch (more on that later) means the stamps won't be useable for much longer.
First class stamps will cost 95p, 10p more than the current price, while second class options will rise by 2p to 68p. So if you need a few stamps, it's worth getting them this week.
Switch your Post Office account
The Post Office will stop accepting payments for tax credits, Child Benefit and Guardian's Allowance next month, HM Revenue & Customs (HMRC) has warned. Around 7,500 Brits still get these payments into their Post Office card accounts, but HMRC will soon stop allowing this.
From April 5, you won't get any of these payments until you switch to a new account. Benefits will only be able to be transfered into a bank, building society or credit union account.
Royal Mail changes - exchange old stamps
Millions of postage stamps will become unusable in less than a year in a huge postal shake-up.
Royal Mail is set to move to a digital system whereby postage stamps are accompanied by a digital barcode in a big to improve security with mail handling. While you are still able to continue using current stamps until January, 2023, people who bulk-buy their stamps will be able to 'swap out' any non-barcoded editions from this week.
State pension rise
On April 11 there will be a 3.1% increase in the full new state pension. The amount you will receive is based on your national insurance record when you reach state pension age.
Only those with a minimum of 35 full qualifying years of contributions will get the full amount. For anyone on the full old state pension, the increase puts their income up to £141.85 per week and anyone on the full rate of new state pension will increase to £185.15.
Prepare for National insurance rise
Between April 6, 2022 and April 5, 2023, National Insurance contributions will increase by 1.25 percentage points. However, not everyone will have to pay, because the threshold for paying National Insurance has been raised.
At present, most workers start paying the tax when their income hits £9,568. They pay 12% of earnings between £9,568 and £50,270, then 2% on any earnings above £50,270.
However the latest tweak means from April, National Insurance will only have to be paid by those earning over £12,570 a year - the same level as income tax starts being paid. Whilst you can't avoid this rise, if it applies, it's one to be aware of for budgeting and if you do your own taxes.
Prescription price rise - consider a prescription 'season ticket'
This is one to keep any eye out for - although a rise hasn't been confirmed yet, April 1 is usually when prescription charges go up. The cost of NHS over-the-counter medication went up from £9.15 to £9.35 last April.
You may be able to save money with a prescription prepayment certificate, which the NHS describes as "effectively a prescription season ticket".
Find out more at https://www.nhs.uk/nhs-services/prescriptions-and-pharmacies/save-money-with-a-prescription-prepayment-certificate-ppc/
