April Fools Day will be no laughing matter for millions of households braced for rises in essential bills such as Council Tax, energy and water from April 1.
Research from Comparethemarket.com has revealed that households are expecting to need more than £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.
Some families, however, face a slightly brighter outlook as a range of Department for Work and Pensions (DWP) benefit payments and the state pension are due to rise by a record 10.1%, the biggest single rise since 1991.
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. ”
The figures show the most popular ways to save include cutting back on outgoings, searching for better deals, switching providers and cancelling subscriptions, so now is a good time to go through your finances and check where you can cut back before these rises come in six weeks time.
Here is the full list of increases set for April:
Confirmed: 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 have 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.
Confirmed: Energy bills
Some are hoping that Chancellor Jeremy Hunt might cancel the April 1 increase to the Energy Price Guarantee from £2,500 to £3,000 from April in his Spring Budget on March 15. But at the time of writing, the average household will face energy bills increasing from £2,500 to £3,000, with even higher bills if you use more than average. At the same time, the Government's £400 energy bill support scheme (EBSS) will also come to an end.
Confirmed: Council Tax
Council tax is another bill that will increase in April, with how much you pay depending upon where you live. This year, local authorities are allowed to increase their bill by up to 5% without a referendum, after Jeremy Hunt last year announced the increase from 2.99%. Although research by County Councils Network (CCN) found that 84 out of the 114 local authorities in England will increase their tax by the full 5%, but in the North East, only County Durham is planning to do so.
You can find out how much you will pay and check you're not paying more than you need to here.
Confirmed: Water bills
Northumbrian Water bills are to set to rise by 7.5% or an average of £29 a year from April. The 2.7m customers in our region will pay an average bill of £391 for their water and sewerage services in 2023/24, compared to the £362 we are paying this year. 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.
Confirmed: 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 in the Autumn Statement.
You can see what your new rates, including for Universal Credit, will be here.
Confirmed: State pension
The state pension will rise 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.
Find out if you can claim pension credit here.
Possible: Prescriptions
Last year, the Department for Health and Social Care (DHSC) kept the cost of a prescription in England at £9.35, but said this would be reviewed for April this year. Although no formal announcement has yet been made, in 2021, the last time prescription prices were increased, they went up by 20p an item. The rise was announced in late February 2021, so there's time yet for this year.
Possible: Stamps
Last year, Royal Mail announced that stamp prices would rise by 12% in April on March 4. The cost of 1st class stamps went up by 10p to 95p and 2nd class by 2p to 68p, but it's not yet known whether the prices will increase again this April.
Find out when you need to have used your old stamps up by here.
Now read:
- Thousands will receive payout after HMRC bans tax refund firm
- Cost of living: A five-step plan to get debt free in 2023
- How to get help if you’re struggling with the cost of food - including voucher schemes
- All the big money changes to look out for in 2023 month by month
- DWP Universal Credit claimants hit as sanctions rise by 250% amid claims they are 'back with a vengeance'
