‘Awful April’ Set to Increase Bills for All Households Across the UK
As April approaches, households across the UK are bracing themselves for a wave of price hikes on essential services. From energy bills to council tax, water bills, TV licences, broadband, and car tax, all are set to increase. This surge in costs has been dubbed ‘Awful April,’ as families are forced to reconsider their budgets and financial commitments.
Energy bills for millions of households are expected to rise by 6.4% from April 1 following Ofgem’s decision to increase the price cap for the third consecutive quarter. This hike comes at a time when the average household is already spending £2,062 on essential services each month, adding further strain to household budgets.
In addition to energy bills, water bills are also set to increase, with an average rise of £123 per year. This marks the largest increase in water bills since the industry was privatised in 1989. Meanwhile, most councils in England are planning to raise council tax bills by 4.99%, with some councils granted permission to go even higher, further burdening households.
Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners, highlighted the impact of these price hikes on living standards, stating that households will face a significant hit to their disposable income. With the cost-of-living crisis escalating, families are urged to revisit their budgets to avoid falling into debt or relying on credit cards to meet their bills.
Ernest Doku, a spokesman for Uswitch, emphasised the importance of reviewing service providers to potentially save on costs. By exploring alternative energy, broadband, and mobile deals, households can mitigate the impact of the upcoming bill hikes and secure better rates.
One of the key areas of concern is the rise in council tax, with millions of households facing an increase in their annual bills. In England, most local authorities are set to raise council tax by 5%, with some councils permitted to impose hikes of up to 10%. Similar increases are expected in Wales and Scotland, prompting households to explore available support options if needed.
For mobile and broadband users, price hikes are also on the horizon, with inflation-linked contracts seeing annual increases of up to £21.99 and £15.90 respectively. However, switching providers or renegotiating contracts could offer potential savings, particularly for customers facing fixed price hikes.
In terms of TV licensing and car tax, both are set to go up by £5 each, placing additional financial pressure on households. The standard rate of car tax will also rise, with electric vehicle owners no longer exempt from taxation, further impacting those who have opted for eco-friendly transport solutions.
As families navigate these impending price hikes, proactive measures such as reviewing contracts, exploring alternative providers, and seeking financial support where necessary can help alleviate the financial strain. ‘Awful April’ serves as a stark reminder of the importance of financial planning and budget management in today’s challenging economic climate.