Millions of households across the UK will face rising bills in April, putting further strain on budgets already stretched by inflation and the cost-of-living crisis.
With the energy price cap set to increase, water bills going up and council tax rates rising, the barrage of bill hikes will eat away at households’ disposable income.
Alice Haine, personal finance analyst at Bestinvest, said: “Anyone lucky enough to receive a pay rise in recent months will be dismayed to see most of that swallowed up by sharp hikes in household bills, whether that is council tax, water or energy, among other costs and taxes.
“Going back to budgeting basics will be key for households to ensure they don’t stray into overdrafts or find themselves forced to pay bills on credit cards because they cannot make ends meet. Creating a monthly budget is relatively easy, as you are simply documenting how much money is coming in, how much must go out and how much can be allocated to other needs and wants. This can be put together in an app, on a spreadsheet or even jotted down in a notebook.”
How to beat the bill hikes
Water
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Average water bills in England and Wales will rise 26% from 1 April, taking the typical annual bill to £603 – a rise of £123 or about £10 per month.
How to beat it: If you have a water meter, you can save money by using less water. You can do this by making sure none of your taps are dripping or leaking, opting for a shower over a bath, and only running your washing machine or dishwasher when they are full.
If you don’t have a water meter and you’re on a low income, you apply for a social tariff via your water company.
Energy
A typical household that pays their energy bill by direct debit will see their annual bill rise by 6.4% to £1,849 per year from April – that’s a £111 increase on the current typical bill of £1,738.
How to beat it: Wherever possible, use less energy. A key way to do this is only putting the heating on when necessary and making sure all lights and appliances are turned off when not in use.
Another idea is to lock in to a fixed tariff – there are several that are currently cheaper than the price cap and a fixed deal will also protect you from rising rates going forward.
Council tax
Millions of households will see a jump in their annual council tax bills from 1 April, with most local authorities in England increasing a typical band D bill by 5%, which equates to an increase of £109 to £2,280 per year.
How to beat it: Check if you’re eligible for a discount. For example, people who live alone get 25% off their bill.
Telecoms costs
Broadband, TV and phone providers often increase monthly prices around this time of year to help absorb rising business costs and the rate of inflation.
Mid-contract increases have been banned for any contracts signed since January this year, so those customers should have a fixed price increase that would have been clearly set out when they signed up.
How to beat it: If your contract is about to expire, haggle with your existing provider for a better deal or shop around for a more competitive option.
Passports
The cost of a new adult passport, applied for online, will rise by £6 from 10 April, going up from £88.50 to £94.50. Those applying by post will have to pay £107 versus £100.
How to beat it: Anyone that needs to renew this year should apply before 10 April to beat the price hike.
