All the bills rising from this week including energy costs and broadband prices – and what you need to do right now
MILLIONS of households will have to pay more for essentials such as food and bills from this week as the cost of living continues to bite.
A raft of hikes are set to come in from April 1, and it helps to be prepared so they don't come as a shock.
Gas and electricity bills will go up from April 1 as that's when the energy price cap increase will be introduced.
Mobile phone and broadband costs will also rise for many families across the UK.
Soaring petrol prices have seen the cost of filling up a family car shoot to almost £100 - even after Rishi Sunak cut fuel duty by 5p.
Tax bills are also set to shoot up in April as national insurance and council tax rates will rise.
However, the living wage and some benefits will rise too and could slightly soften the impact of other increases.
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The living wage, which is paid to those age 23 and over, will rise from £8.91 to £9.50 an hour from April.
It helps to be aware of all the changes that are coming and how much they will cost you, so you can take steps to budget and protect your finances.
Council tax
Council tax is going up in April - and it could be by as much as £500.
There's no way to avoid the increase, but it pays to be aware of upcoming changes so you're not caught out.
Many households will at least get a £150 rebate on their council tax in April - it's part of the Chancellor's measures to help with soaring energy bills.
You should get the payment if your property is in council tax bands A to D, and there is a discretionary pot of £144million to help those outside those bands.
If you pay your council tax by Direct Debit you'll get the payment automatically - but you will have to wait a bit longer if you don't.
Check what council tax bracket your home falls under by entering your postcode on the .
Then you need to find out how much your local authority area charges, as it differs across the country.
Residents can find out which local council area they live in by searching on the .
This is also where you may be able to apply for a council tax reduction if you're on a low income or claim other benefits.
Depending on your circumstances, you could get your bill reduced by up to 100%.
Exactly what discount you get depends on factors including:
What you get depends on:
- Where you live - each council runs its own scheme, with different rules
- Your circumstances - including number of children, benefits, residency status
- Your household income - including savings, pension and a partner’s income
- If your children or other adults live with you
For instance, if you're the only adult in your household, you automatically get 25% off your bill, but many people get far more.
To apply, enter your postcode into , and then head to your local council to see what's available.
If you think your property is in the wrong band, you can .
Energy bills
Energy bills have soared in recent months and they're set to continue rising in 2022.
Rocketing wholesale gas prices prompted energy firms to remove their cheapest fixed deals from the market.
That means families were moved onto the energy price cap - which will go up by a record £693 this week.
Those on default tariffs paying by direct debit will pay an average of £1,971 per year from April 1.
Prepayment customers will see an increase of £708 from £1,309 to an average of £2,017.
The price cap is expected to go up again in October.
Chancellor Rishi Sunak announced that all energy customers will get a £200 discount on their energy bill this year to tackle the rising costs.
But people will have to pay the money back in £40 instalments over the next five years.
Martin Lewis has explained how the scheme will work and that it's more like a levy than a loan - here's what he said.
If you need extra help, there are Government and local authority schemes that can assist - so check whether you're eligible for support.
You could get money if temperatures drop to freezing in your area with cold weather payments, which are £25, or if you're already on certain benefits.
Energy suppliers offer a warm home discount scheme which is £140, although the scheme has already closed for most suppliers this year.
Anyone getting pension credit gets the bill discount automatically, and you may also qualify if you are on a low income.
You can find more about how to get the help in our guide.
What to do if you can't pay your bills
FALLING behind on your energy bills can be extremely stressful.
If you’re struggling to pay what you owe, contact your supplier as soon as possible.
Your provider has to help you come up with a solution, and you should be able to negotiate a deal that works for you both.
One option is to agree a payment plan where you pay off your debts in affordable instalments.
You may be able to pay off your debts directly from your benefits through the Fuel Direct Scheme.
A fixed amount will automatically be taken to cover what you owe plus your usage.
To be eligible, you must be getting one of the following benefits:
- Income-based jobseeker’s allowance
- Income support
- income-related employment and support allowance
- Pension credit
- Universal Credit (but only if you’re not working)
If you cannot come to an agreement with your supplier, they may try to force you to get a prepayment meter installed.
In very rare cases, where you refuse to negotiate, your supplier might threaten you with .
Local councils also offer welfare assistance schemes all year round that can help you with bills.
And energy suppliers are offering cash grants to those hardest hit by bills rises.
For example, British Gas is giving out up to £750 through its hardship fund.
But the amount can vary according to your supplier and your circumstances.
If you're not eligible for any financial help, you can reduce the amount of gas and electricity you need with some simple tips.
For example, by turning your thermostat down just one degree you could save around £100.
National insurance
You can't avoid your national insurance tax increasing this year, but you should be aware of the incoming change.
Rishi Sunak announced a major change to National Insurance in his Spring Statement, which means millions more workers won't pay the tax from July.
However, many people will still have to pay hundreds of pounds more a year as the National Insurance rate goes up from 12% to 13.25%.
You can check out how it will affect your salary here.
If you're ready for the increase, you'll be able to set a new budget, rather than being surprised by the tax increase after April 2022.
Perhaps it is time to ask your boss for a pay rise or look at ways to increase your income from other sources.
Mobile and broadband bills
Many UK mobile networks and broadband providers are preparing to hike their prices from April.
EE, Vodafone and BT pay monthly customers will see their bills rise by as much as 9.3% from April.
A Sun investigation found that EE - which is owned by BT - is increasing prices by up to £73.68 a year.
O2 is yet to announce how much payments will increase by, but that will be revealed later this month.
You can't get out of these mid-contract hikes as they're in the agreement you signed.
Check your contract to find out how much you currently pay. Your provider will get in touch to tell you how much it will increase by.
You can also haggle with your provider to try and lower your bill, especially if you are coming to the end of your contract.
They will want to keep your business, so may offer you a better deal.
Mortgage rates
The Bank of England voted through a rise in interest rates to 0.5%, and it could have a knock on impact on your mortgage payments.
You won't pay more if you're on a fixed rate mortgage deal, as you've agreed your rate for a certain period of time.
But after your deal ends or if you're trying to buy for the first time, you could find rates are higher than when you last looked because of the latest hike.
Homeowners with a tracker mortgage linked to the base rate will see their repayments will rise, but when this happens will depend on your lender's terms and conditions.
Some mortgage lenders have said they will increase standard variable rates (SVR) and others are "reviewing" theirs after the Bank of England's decision.
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Homeowners have been warned they should check their mortgage deal sooner rather than later to make sure they are getting the best deal, as the Bank is expected to hike rates further this year.
If you are coming to the end of your fixed period, you may want to agree a new deal as soon as possible before the rates rise.
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