Most Brits are now aware that energy prices are set to soar from April 1. The record increase in global gas costs will see the energy price cap rise 54%, leaving many bill payers worried.
But there are plenty more changes to laws and additional costs to be aware of as we enter the new month. Many of the increases will come into effect from Friday, April 1, with new rules being rolled out in the days ahead.
Everything from energy bills to the price of stamps, council tax and water bills will be impacted. There are also changes in the rules around divorce as well as new driving rules which could land you hefty fines. You can get more money news and other story updates by subscribing to our newsletters here.
Read more: Martin Lewis' advice if your energy firm is trying to double your direct debit
But there is some good news. At the start of the month an increase in pension and minimum wage is also coming into force. Here are the changes you need to know about in Wales.
New Highway Code rules - since March 25
You could face a fine for using a mobile phone even if you're a passenger under new Highway Code rules. Drivers who even touch a phone face could be hit with a £200 penalty after tough new rules came into effect this month. If a person is supervising a driver who is learning, they could now be hit with a £1,000 fine - as well as a massive six points on their licence. Current rules under the Highway Code already make texting or calling while driving illegal. Drivers need to be aware of the new rules to avoid fines.
Check your meter reading - March 31
Energy bills are due to rise by an average of 54% on Friday, April 1, and households are being encouraged to take - and submit - a gas and electricity meter reading the day before - this Thursday. By doing so, you can ensure all energy used up until that date is charged on the cheaper rate - the current energy price cap. Those that do not submit a reading risk some of their energy being charged on the new higher unit price which is around £693 more expensive a year.
Justina Miltienyte, head of policy at Uswitch.com, told the Mirror: “Energy prices going up can be worrying for many — but consumers can still take simple steps before 1st April to take control of their energy use. It is recommended that anyone who does not have a smart meter should take a meter reading on March 31st and submit it to their supplier. This gives your supplier proof of how much energy was used before 1st April, when the new rates come into effect, and will ensure your bills are accurate.
“You could leave it until later in the afternoon or evening to submit your reading, to ensure as much of your energy use as possible from 31st March is calculated under the old rates. While there is nothing you can do to reduce the actual cost of energy, regularly submitting meter readings to your supplier is a good habit to get into, as it can help to ensure you are only paying for the amount of energy you are using.”
Start exchanging your Royal Mail stamps - March 31
Millions of postage stamps will become unusable in less than a year in a huge postal shake-up. Royal Mail will be moving 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 First and Second class stamps until the cut-off date in January, 2023, people across the UK who bulk-buy their stamps will be able to 'swap out' any non-barcoded editions from this week.
Mobile phone bills rise - April 1
BT Mobile, EE, Plusnet Mobile and Vodafone will be hiking prices at the CPI rate plus 3.9 per cent, while ID Mobile, O2 and Virgin Mobile link their prices to the retail prices index (RPI), which is 7.1 per cent. Tesco Mobile and Sky Mobile currently do not raise their prices in line with inflation, while flexible rolling contract providers GiffGaff, Smarty, Utility Warehouse, Voxi and Lebara do not factor automatic price rises into their plans.
In a message sent to customers, EE said: "For example, a £25 price plan will increase by £2.31 a month. Your out-of-bundle charges and other add-ons will also increase in line with the CPI rate of inflation plus 3.9 per cent. For example, a £1 add-on will go up by £0.09 a month. Calls and texts to EU countries from the UK will also increase on the same basis and will increase as of 31 March each year by the CPI rate of inflation published in January plus 3.9 per cent."
Council tax rising and £150 rebates begin - April 1
New council tax rates come into force from April, affecting almost all households - unless you are exempt. The official cap on how much local authorities can increase council tax by is 5% – this is made up of a 2% council tax rise and an additional 3% for social care. Most people will have now received letters in the post, explaining how much their tax is rising by.
Bill-payers are also being advised to set up a direct debit for their council tax payments before April to ensure they receive the £150 rebate on time. The Energy Rebate scheme was announced by the Chancellor earlier this month to help people cope with rising energy bills. It will see eligible households in England in Council Tax Bands A-D properties receive a £150 energy rebate payment from their council from April this year.
As the initial announcement only covered England, the Welsh Government has confirmed it will offer a £150 council tax rebate to low-income households to help with the cost of living crisis. Anyone in band A to D will get the payment, as well as those on low incomes. The scheme will also be mirrored in Scotland. If you are eligible for the scheme you don't need to apply. You should receive the money automatically. You can keep up to date with Welsh Government news by subscribing to our Wales Matters newsletter here.
In England, non-eligible households in band E or above who are still struggling to pay their council tax, are able to contact their local authorities for support. The UK Government gave a £144million discretionary fund to English local authorities which people can apply for if they do not qualify for the rebate. WalesOnline has contacted the Welsh Government to ask if any support will be given to people in Wales who are not eligible for the £150 council tax relief.
DVLA tax rates are likely to change - April 1
Motorists are being warned to pay their road tax soon to avoid a hike in prices. The Driver and Vehicle Licensing Agency (DVLA) is urging drivers to renew their tax by April. If they do not, the DVLA says they could face a steep increase in the price. Taxing your vehicle is easy and can be done through the DVLA website.
Energy price cap - April 1
The energy price cap is the maximum amount a utility company can charge an average customer in the UK per year for the amount of electricity and gas they use, preventing businesses from simply passing on cost increases to the consumer. The cap, set by the regulator Ofgem and first introduced in January, 2019, applies to customers who are on a standard variable tariff, typically a provider’s default and most expensive option.
From April 1, the cap will rise from £1,277 to £1,971 for a household on average usage. That means a £693 per year increase for the average customer. Prepayment meter customers will see an increase of £708 from £1,309 to £2,017. These are average rises though, so use more and you'll pay even more.
The BBC also reported the price per day for a Single Rate Electricity Meter from April, 2022, by region in the UK. For Wales, the data sourced from OfGem showed:
- South Wales: up 22p a day to 46p - a 94% increase
- North Wales & Merseyside: up 23p a day to 45p - 102% increase
The south Wales region has the fourth highest increase in the UK, while the north Wales and Merseyside region will see the highest.
Jonathan Brearley, chief executive of the energy regulator Ofgem, said: “We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can.”
New minimum wage - April 1
The National Living Wage is the government’s set minimum rate that employers must pay staff aged 23 and over for each hour worked. Essentially, if you’re over 23, you are legally entitled to the National Living wage. 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 this will soon increase to £9.50 from Friday, April 1, 2022. This means employees will receive 6.6% more in their pay packets, amounting to an extra £1,074 a year before tax. That works out to around an extra £90 per month. 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 bills are changing - April 1
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.
According to industry body Water UK, the average yearly water bill in England and Wales will rise to £419 from an average of £412 last year. However, there is some variation across England and Wales, with some customers’ bills increasing by up to £35 a year, while some will fall by up to £31 a year.
In Scotland, water and sewerage prices depend on your council tax band and are covered by what's called a "combined service charge". Households in Scotland will see these water and waste charges increase by an average of 4.2% from April. You may be able to save money on water by getting a meter.
First and second class stamps going up in price - April 4
Prior to the digital barcode switch, Royal Mail has announced a hike in prices for first and second class stamps from April 4, 2022. First class stamps will cost 95p, 10p more than the current price, while second class options will rise by just 2p to 68p. If you're a regular stamp-buyer, it's worth getting your purchase in before the prices rise.
Deadline to switch your Post Office account - April 5
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, anyone who has not switched these payments to a new account will get nothing until they do.
Customers can choose to receive their HMRC benefits into a bank, building society or credit union account. The change to Post Office card account payments was due to come into force from November 30 last year. It was pushed back to allow more people time to arrange a new payment method.
No fault divorce - April 6
After decades of campaigning, 'no fault divorces' will finally become law on April 6. The changes are the biggest shake-up of divorce laws for 50 years and it means that married and civil partnership couples will be allowed to obtain a divorce without having to blame the other party. The new law aims to reduce potential hostility between couples when separating by removing the need to apportion blame. Under current divorce law, married couples looking to divorce need to prove the irretrievable breakdown of the marriage.
State pension - April 11
There will be a 3.1% increase in the full new state pension in 2022/23 - with the rise to take effect on April 11. How much you will receive is based on your national insurance record when you reach state pension age. You will only get the full amount if you have a minimum 35 full qualifying years of contributions. Someone on the full old state pension will increase to £141.85 per week and anyone on the full rate of new state pension will increase to £185.15.
National insurance - April 6
From April 6, 2022, to April 5, 2023, National Insurance contributions will increase by 1.25 percentage points. This will be spent on the NHS, health and social care in the UK. However, not everyone will have to pay it as the Chancellor has just raised the NI threshold. At present, most workers start paying National Insurance contributions 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. In short, that means anyone earning less than about £35,000 a year will pay less National Insurance. That is about 70% of all workers. You can find out how much you will pay when National Insurance rises by clicking here.
Are flight prices going up?
A shake-up of air passenger duty (APD), the tax that passengers pay on flights that take off from the UK, was announced as part of Chancellor Rishi Sunak ’s budget last autumn. Under the changes, long haul flights are to become more expensive while the tax paid on domestic flights will be cut in half - but not until next April (2023).
Under the current rules, APD is charged in two bands, for destinations under 2,000 miles and above 2,000 miles. The current rate of APD for a one-way domestic flight in economy is £13, while the new rate will be £6.50 each way. For international flights, taxes will rise for long haul journeys of over 2,000 miles. The new rules will see the bands expand from two to three, set at zero to 2,000 miles, 2,000 to 5,500 miles, and 5,500 miles and over,
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