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Households need extra £200 a month to cover April bill hikes

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Millions of households will need to find an extra £200 a month to help cope with surging bills come April.

In April, a host of bills will rise, including energy, mobile and broadband, as well as insurance and council tax.

This is in addition to the £1,316 rise in bills already absorbed by households last year.

But even ahead of the Spring bill hikes, Brits are already finding it difficult to cope with soaring costs.

Nearly half (48%) of households have struggled to cover bills in the last few weeks, according to Comparethemarket’s Money Action Index.

However, for households with children, the proportion rises to 61%, the comparison site revealed.

For these families, they will need to find an extra £238 per month to cover April’s bill increases.

And for one in five, they’ve been forced to borrow money (average of £232) from parents in the past month to cover regular bills.

It comes as the Government’s Energy Price Guarantee – which caps average bills at £2,500 a year – will rise to £3,000, meaning eight in 10 expect to pay more in the next six months.

For a third (35%), they’re worried about the inflation-linked broadband price hikes, while 34% expect the cost of car insurance to impact them. For 28%, they’re also expecting higher home insurance bills.

According to the price comparison site, car and home insurance have increased by a combined average of £93 year on year. By switching insurance cover, households could save up to £533 a year, while broadband customers could save an average of £188.

While the bill hikes have been foreseen, six in 10 households who are worried about rising costs haven’t taken any steps to bolster their finances.

Just 31% have taken action to save money. Here, the most popular way to save include reviewing outgoings to see where cutbacks can be made (38%), searching for better deals online and switching providers (35%), and cancelling subscriptions (30%).

However, for one in five, they’ve been forced to borrow money from parents in the past month to cover regular bills.

April bill shock

Mark Bailie, chief executive 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. During this difficult time, people must take the time to look for savings wherever they can and make sure they don’t pay more than they need to.

“Most households could save hundreds of pounds by shopping around for cheaper deals on their bills, such as car and home insurance, broadband, and credit cards. Comparing prices online is one of the best ways to check you’re getting the savings you deserve.”

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