The energy price cap confirmed this week sparked some concern as it will send household bills up by 6.4% as of April 1. However, that’s not the only rising cost of living Brits are facing in the spring.
Energy
The 6.4% increase will raise the price cap to £1,849 per year for a typical household, a £111 or around £9.25 a month rise. This is mainly driven by a recent spike in wholesale prices.
In the price cap announcement, Ofgem also noted that four million customers had moved to a fixed tariff after the previous price cap rise in November. Currently, a total of 11 million people are now on fixed tariffs and therefore won’t see the impact of this rise.
A number of benefits and grants are available from the government or your supplier if you’re struggling with these bills. For example, the household support fund, energy company obligation and temporary supplier credits.
Water
Water bills in England and Wales are due to increase by £10 per month on average. This will differ depending on your supplier. For example, according to the BBC, Southern Water bill will increase by 47% to £703, while Anglian Water customers will pay 19% more, or £626.
These increases will go towards fixing and improving old infrastructure such as building more reservoirs. In Scotland, bills are set to rise by almost 10% to offset the impact of drastic weather changes.
Available help depends where you are in the UK and what your household looks like. Social tariffs, the WaterSure scheme and financial hardship funds could be available to help.
Council tax
One of the tax changes due in April is a council tax rise, with the exact increase dependent on your local authority. Councils can put their tax up by 4.99% without triggering a local vote in England.
However, an exemption has been made this year for five councils that will allow them to bypass this threshold. This includes Bradford, Newham, Birmingham, Somerset as well as Windsor and Maidenhead.
Scottish council tax rates will be increasing up to 10% in some areas. While Wales councils could increase their tax by up to 15%. If you’re struggling with council tax bills, Citizens Advice can share potential benefits and discounts you may be eligible for.
Car tax
The standard rate tax you pay on your car could change in April depending on when it was first registered and the type of fuel it uses. EVs will also no longer be tax exempt and will be paying the lowest rate, £10, for the next year before moving to the standard rate. Disabled drivers may be able to get help paying their car tax from the government.
Communications
Broadband, phone and TV licence fees could be going up after rule changes by the telecoms regulator this year. These will depend on a variety of factors like when your contract started, what type of contract or licence you have.
For example, Virgin Media broadband customers could face a 7.5% rise but those who only took out their contract after January 9, 2025 will see their bill increase by £3.50 only. Normal TV licences are due to increase by £5 and black and white licences will only rise by £1.50. Citizens Advice can guide you on social tariffs, discounts and benefits that could potentially cut down these bills if you aren’t able to pay them.
Stamp duty
Among the myriad of tax changes due in April, house buyers in England and Ireland face a lower stamp duty threshold. Previously, only properties over £250,000 were liable for the tax but from April it will be applied on properties over £125,000. The stamp duty threshold for first-time buyers will also drop from £425,000 to £300,000.
Other tax rises
While national insurance and income tax will remain stable this year for employees, the thresholds at which people start paying these taxes are also holding firm. Factoring in annual wage rises to keep up with inflation, this could see more people liable for the taxes or higher rates.