A HANDY tool can reveal exactly how much your bills will rise by in Awful April.
Millions of households will see their monthly outgoings rise by around £660 a year from April 1.
Energy, water, and council tax bills are all going up, piling further pressure onto already overstretched household budgets.
To help with budgeting ahead of this, debt and money advisory service Money Wellness has launched a free, household bills calculator.
By entering their current household expenses, users can receive a personalised forecast detailing projected price increases across key areas, including energy, council tax, water, broadband and more.
The tool aims to help people prepare for the price hikes by providing clear and tailored insights.
It’s free to use and can be found on the Money Wellness website by visiting moneywellness.com/cost-of-living-calculator.
Sebrina McCullough, external director at Money Wellness, said: “With multiple household costs rising, having access to simple, practical financial tools is more important than ever.
“Our new interactive calculator makes it easy for people to understand exactly how these increases will affect their budget, allowing them to take proactive steps to stay on top of their finances.”
What bills are rising in April?
From next month, the energy price cap will rise by 6.4%, water bills will surge by 36%, and the majority of councils will increase council tax by up to 4.99%, with a select few granted permission to raise it by as much as 10%.
Broadband and mobile bills will also see mid-contract price rises, averaging 6.4% for longstanding customers, while TV licences and car tax will rise by £5 and £30 a year respectively.
Combined with ongoing food inflation, these increases are expected to add an average of £660 to household expenses over the next year.
ENERGY
From April 1, Ofgem‘s energy price cap will rise by 6.4% to £1,849 a year.
This impacts approximately 22million households on standard variable tariffs.
For a typical user, this will add an additional £111 to their annual bill, equating to roughly £9.25 extra per month.
But don’t despair! There are things you can do now to cut your costs.
Switching to a fixed energy deal now could potentially protect you from this increase and any future hikes.
With a fixed deal, your rates stay the same for the length of your contract.
There is a risk that if energy prices fall, you could end up paying more.
However, experts predict prices are unlikely to drop this year.
Even if you don’t switch, small changes can make a big difference to your bill.
Turning down your thermostat by just one degree, switching to energy-efficient LED light bulbs, and draught-proofing your windows and doors can all help lower your energy usage
For more energy-saving tips, visit energysavingtrust.org.uk/hub/quick-tips-to-save-energy.
What energy bill help is available?
There’s a number of different ways to get help paying your energy bills if you’re struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have schemes available to customers struggling to cover their bills.
But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill.
Some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
WATER
It’s not just your energy bills that are going up – your water bills are set to take a leap next month too.
The average annual bill will increase by £123.
That’s an extra £10 a month on top of what you’re already paying.
Some regions will face even steeper hikes, so it’s worth checking with your specific supplier.
But the good news is, there are ways to mitigate these rising costs.
Firstly, if you have more bedrooms in your home than people, consider getting a water meter installed.
You might be surprised by how much you can save.
Secondly, be vigilant about leaks.
Even a dripping tap can waste a significant amount of water over time, adding to your bill.
Finally, check if you’re eligible for a discounted social water tariff.
According to the Consumer Council for Water, over two million households qualify but aren’t claiming these savings.
Contact your supplier to see what support is available.
What water bill support is available?
IT’S always worth checking if you qualify for a discount or extra support to help pay your water bill.
Over two million households who qualify to be on discounted social water tariffs aren’t claiming the savings provided, according to the Consumer Council for Water (CCW).
Only 1.3million households are currently issued with a social water tariff – up 19% from the previous year.
And the average household qualifying for the discounted water rates can slash their bills by £160 a year.
Every water company has a social tariff scheme which can help reduce your bills if you’re on a low income and the CCW is calling on customers to take advantage before bills rise in April.
Who’s eligible for help and the level of support offered varies depending on your water company.
Most suppliers also have a pot of money to dish out to thousands of customers who are under pressure from rising costs – and you don’t have to pay it back.
These grants can be worth hundreds of pounds offering a vital lifeline when faced with daunting water bills.
The exact amount you can get depends on where you live and your supplier, as well as your individual circumstances.
Many billpayers across the country could also get help paying off water debts through a little-known scheme and even get the balance written off.
Companies match the payments eligible customers make against the debt on their account to help clear it sooner.
If you’re on a water meter but find it hard to save water as you have a large family or water-dependent medical condition, you may be able to cap your bills through the WaterSure scheme.
Bills are capped at the average amount for your supplier, so the amount you could save will vary.
The Consumer Council for Water estimates that bills are reduced by £307 on average through the scheme.
COUNCIL TAX
Most councils in England are planning to increase council tax by the maximum permitted rate of 4.99%.
This will add over £100 to a typical Band D property’s annual bill.
But for those of you in Scotland and Wales, the news is even worse.
You could be facing hikes of up to 10%.
So, it’s more important than ever to make sure you’re not paying more than you absolutely have to.
Check if you’re eligible for a council tax discount or exemption – single occupants, students, those on low incomes, and people with certain disabilities can qualify.
It’s also worth checking if your council tax band is correct.
If you think it’s wrong, you can challenge it.
Contact your local council for all the details.
What council tax support is available?
THERE are several ways you can get discounts and reductions on your council tax bill.
In some cases, you can even get the bill completely wiped with a council tax reduction.
Factors such as your household income, whether you have children, and if you receive any benefits, will influence what you get.
To apply, visit https://www.gov.uk/apply-council-tax-reduction.
You’ll need your National Insurance number, bank statements, a recent payslip or letter from the Jobcentre, and a passport or driving licence when filling out the details.
Below, we reveal all the ways you can get discounts or a reduction on your bill:
Single person discount
If you live on your own, you can get 25% off your council tax bill.
This also applies if there is one adult and one student living together in a property, or if there is one adult and one person classed as severely mentally impaired in the home.
If you live with someone who doesn’t have to pay council tax, such as a carer or someone who is severely mentally impaired, you could get a larger reduction too, of up to 50%.
And, if you live in an all-student household, you could get a 100% discount.
Retirees
Pensioners may also find themselves eligible for a council tax reduction.
If you receive the Guarantee Credit element of Pension Credit, you could get a 100% discount.
If not, you could still get help if you have a low income and less than £16,000 in savings.
And a pensioner who lives alone will be entitled to a 25% discount too.
Low-income households
If you are on a low income or receiving benefits, you could be eligible for a reduction on your council tax.
Whether you are eligible will vary depending on where you live.
You could also get a deferral if you’re struggling to pay your bill, or you can speak to your council about setting up a payment plan to manage the cost.
But one thing to remember is if you are struggling you should contact your council as early as you can.
MOBILE, BROADBAND AND TV
This April, millions of us will see our mobile, broadband, and TV costs go up.
The exact amount your bill will rise will depend on your provider and when you signed up for your contract.
For example, many Virgin Media broadband customers are looking at a 7.5% rise.
However, if you signed up after January 9 this year, your monthly bill will increase by £3.50.
O2 mobile customers will see a fixed increase of £1.80 a month, regardless of their contract date.
And BT customers who signed up after April 10, 2024 will face a fixed £3 pound monthly increase, while those who signed up before then will see a 6.4% rise.
However, 32million mobile customers – that’s 37% – are out of contract and potentially overpaying.
Research by Which? suggests that switching providers after your contract ends could save you around £256.
So, shop around for new broadband and mobile deals, and don’t be afraid to haggle with your existing provider.
And if you’re on a low income or receiving benefits, check if you’re eligible for a cheaper social tariff.
How to save on your mobile phone bill
NOT happy with your current mobile phone deal?
If you’re outside the minimum term of your contract then you won’t need to pay a cancellation fee – and you might be able to find a cheaper deal elsewhere.
But don’t just switch contracts because the price is cheaper than what you’re currently paying.
Take a look at how many minutes and texts, as well as how much data you’re using, to find out which deal is best for you.
For example, if you’re a heavy internet user it’s worth finding a deal that accommodates this so you don’t end up spending extra on bundles or add-ons each month.
Also note that if you’re still in your contract period, you might be charged an exit fee.
Ready to look elsewhere? Pay-as-you-go deals are better for people who don’t regularly use their phone, while monthly contracts usually work out cheaper for those who do.
It’s worth using comparison websites, such as MoneySupermarket and uSwitch.com, to compare tariffs and phone prices.
Billmonitor also matches buyers to the best pay-monthly deal based on their previous three months of bills.
It only works if you’re a customer of EE, O2, Three, Vodafone or Tesco Mobile and you’ll need to log in with your online account details.
There’s also MobilePhoneChecker, which has a bill monitoring feature that recommends a tariff based on your monthly usage.
If you’re happy with your provider then it might be worth using your research to haggle a better deal.
TV LICENCE
From April 1, the cost of a TV Licence is going up.
A colour licence will increase by £5 to £174.50 a year.
If you have a black and white television, the cost will rise by £1.50 to £57.
But there are ways to legally reduce your bill, or even eliminate it entirely.
If you don’t watch or record live TV broadcasts on any channel or device, and you don’t use BBC iPlayer, you can cancel your TV Licence.
If you’re legally blind, you’re entitled to a 50% discount.
And if you’re over 75 and receiving pension credit, you qualify for a free TV Licence.
You can apply for this on the TV Licensing website by visiting tvlicensing.co.uk/check-if-you-need-one/for-your-home/aged-74-and-over-aud3.
CAR TAX
Car tax is going up in April too.
For vehicles registered after April 2017, the standard rate is increasing by £5 to £195 a year.
But the biggest change affects electric vehicles.
Those registered from April 2025 onwards will no longer be exempt from car tax.
You’ll pay £10 for the first year and then the standard rate of £195 thereafter.
And if you are buying a new EV costing over £40,000, be aware that you will also have to pay an additional expensive car supplement of £620 per year for the first five years.
These changes are definitely something to consider if you’re thinking about buying a new car.
So, do your research and factor these costs into your budget.
STAMP DUTY
Stamp duty thresholds in England and Northern Ireland are changing on April 1, and not in a good way.
The threshold for paying stamp duty is dropping from £250,000 to £125,000.
And for first-time buyers, the relief threshold is falling from £425,000 to £300,000.
This means you will start paying stamp duty on a lower purchase price if you complete after April 1.
If you’re already in the process of buying a house and want to take advantage of the current higher thresholds, you need to complete your purchase before April 1.
Otherwise, you’ll need to factor these changes into your budget.
What is stamp duty?
STAMP duty land tax (SDLT) is a lump sum payment anyone buying a property or piece of land over a certain price has to pay.
You pay the tax when you:
- Buy a freehold property
- Buy a new or existing leasehold
- Buy a property through a shared ownership scheme
- Land is transferred to you or property in exchange for payment, for example, you take on a mortgage or buy a share in a house
The rate you pay depends on the price and type of property and certain thresholds.
If you are a first-time buyer no stamp duty is due if the property is worth £425,000 or less.
You’ll also get a discount if the purchase price is £625,000 or less and will only pay 5% SDLT on the portion from £425,001 to £625,000.
Those who aren’t first-time buyers will pay different rates depending on the value of their new home:
- If it’s up to £250,000 – no stamp duty is paid
- For the next £675,000 (the portion from £250,001 to £925,000) – stamp duty is charged at 5%
- For the next £575,000 (the portion from £925,001 to £1.5million) – stamp duty is charged at 10%
- For the remaining amount (the portion above £1.5million) – stamp duty is charged at 12%
For example, if you are buying a home worth £300,000 you would pay stamp duty at a 5% rate on the £50,000 – £2,500.
You’ll usually have to pay 5% on top of SDLT rates if buying a new residential property means you’ll own more than one.
