Some household bills and NHS charges will get more expensive for Brits from next month.
The cost of living crisis is far from over as struggling households faced an unexpected rise in inflation in February, which went against economic forecasts. Data from the Office for National Statistics (ONS) showed a rise in the Consumer Prices Index (CPI) in February, up to 10.4% from 10.1% in January.
Most economists were expecting CPI to fall to 9.9% in February. It followed three straight months of declining inflation, which had seen hopes mount that the era of double-digit inflation was coming to an end. Meanwhile earlier this month the Bank of England raised the interest rate in a bid to help tackle climbing inflation.
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The base rate was raised from 4 percent to 4.25 percent in its 11th consecutive increase. It meant those with a loan or a mortgage with a variable interest rate saw an increase in their repayments, while those with savings account pays interest might have seen rates go up.
April marks the start of a new financial year - here are the price increases to be aware of next month.
Council tax
The majority of council tax payments will increase by 5 per cent in April, but this may vary depending on where you live. It comes after a change in rules has allowed councils to raise their tax prices by up to 5 per cent without a referendum.
Analysis by the Mirror of town, city and council hall budgets found that more than three quarters (76%) were planning to impose the maximum possible hike to bills on April 1.
Water bills
Water bills will rise by 7.5 percent from April 1 - the biggest increase in 20 years. From April 1, the typical combined water bill will rise by an average of £31 a year - or 7.5% - to £448.
However, your provider will determine how much your bills will rise by. Water firms say that the increase is partly driven by higher energy bills, pointing out that water suppliers consume 2% of UK electricity.
NHS prescriptions
The Department for Health and Social Care (DHSC) previously froze the cost of a prescription in England at £9.35. However, from April 1 prescription charges will be increased at an inflation rate of 3.21 per cent, meaning that prescriptions will cost 30p more - from £9.35 to £9.65.
Furthermore, prescription pre-payment prices will increase by £1 to £31.23 while 12-month PPC will increase by £3.50 to £111.60.
NHS dental charges
The fee for dental procedures on the NHS will increase by 8.5% from April 24. A band 1 treatment like a check-up will increase from £23.80 to £25.80, a band 2 like a filling will increase from £65.20 to £70.70, and a band 3 like dentures will increase from £282.80 to £306.80.
Stamps
From April 3, Royal Mail will introduce price changes to first class and second class stamps. First class stamps will increase by 15p to £1.10 while second-class stamps will increase by 7p to 75p.
Vehicle Excise Duty
As part of the Budget announcement earlier this month, the Government confirmed that the rate of Vehicle Excise Duty would increase. This rise will apply to cars, vans and motorcycles in line with the rate of inflation (RPI) from April 1, 2023.
The Retail Price Index is currently at 10.1 percent, which will be reflected with the increase in car tax, with the sums being rounded to the nearest £5. The standard rate, which drivers pay from year two after the car was first registered, will increase from £165 to £180.
Mobile phones and broadband
Under current rules, telecom companies can raise their prices in line with inflation plus around 4 per cent. The rate of CPI for December or RPI for January are generally used to factor this change.
For December, the CPI rate stood at 10.5 per cent with some companies going with this increase plus 3.9 per cent - equating to a 14.4 per cent increase. Meanwhile, the RPI for January stood at 13.4 per cent, paving the way for rises as high as 17.3 per cent with additional increases factored in.
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