16 Major Financial Changes Approaching and Its Impact on You
As the new financial year approaches, there are significant financial adjustments set to come into effect, affecting households across the UK. These modifications cover various aspects such as car tax, water bills, energy bills, national minimum wage, pension credit, tax credit, as well as price alterations for stamps, TV licenses, and broadband bills. These updates follow the Spring Budget scheduled for Wednesday, March 26.
Chancellor Rachel Reeves is due to present the spring statement, providing updates on the economy, public finances, and the UK Government’s economic objectives. Nonetheless, Prime Minister Keir Starmer has indicated that no major decisions will be announced following numerous statements made in the autumn. Let’s delve into the 16 financial changes that will take effect in the upcoming days.
March 31/April 1: Household Support Fund Conclusion
The Household Support Fund, designed to assist with essentials like food and energy bills, is concluding on March 31. Each council will determine its application deadline, with varying eligibility criteria and funding amounts. The National Living Wage will increase by 6.7%, benefiting millions of low-paid workers. Workers aged 21 and above will see their minimum earnings rise from £11.44 to £12.21.
Energy Price Cap Alteration
Ofgem has confirmed that the average dual fuel bill for those not on a fixed deal will increase from £1,738 to £1,849 annually. This hike equates to a £111 increase per year or £9.25 per month for the average household. Council tax across many local authorities is set to rise by up to 15.6% this April, with the average expected increase being around 5%.
TV Licence and Car Tax Adjustments
The price of a TV licence will rise to £174.50, with car tax rates also increasing on various vehicle models, affecting many drivers financially. Water bills are also set to surge, with Welsh Water Dwr Cymru permitted to hike its charges significantly over the next five years. This increase in price aims to fund a substantial investment in services and environmental projects.
Changes in Mobile and Broadband Bills
Several popular mobile and broadband providers will raise their monthly charges, impacting customers across the UK. Landfill Disposals Tax rates in Wales are changing, with revised rates being implemented from April 1. Employers National Insurance contributions will rise from 13.8% to 15% on April 6, with adjustments in the weekly earnings threshold.
Benefit Adjustments and State Pension Increase
Benefit payments for millions of households will increase by 1.7% from April 7, reflecting the rising cost of living. The price of stamps is also set to rise, along with a state pension increment based on the triple lock promise. Beginning in April, the Help to Save scheme will be extended until 2027, providing Universal Credit claimants with a potential cash boost of up to £1,200.
As these significant financial changes loom closer, many individuals and families may need to reassess their budgets and financial plans to accommodate these adjustments effectively. Stay informed and prepared to navigate the evolving financial landscape to ensure your financial well-being in the upcoming year.