Full list of major money changes coming in weeks including big bill hikes and free cash – what to do about them
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NINE major money changes will take place in the coming weeks including tax and energy bill hikes.
Energy bills will rise by £500 for the average household and mobile, broadband and TV packages will see prices rise from April.
Council tax bills will then be hiked for millions later on in the Spring.
Chancellor Jeremy Hunt will deliver his Spring Budget on March 15.
But any major policies announced are unlikely to come into force until the next financial year from April 6.
Here are all the changes set to impact your finances in the coming weeks and a detailed explanation of what you can do to minimise the damage.
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1. Rail fares rise - March 5
Rail fares usually rise each year based on the annual increase in the retail price index (RPI) measured the previous July.
But the government recently confirmed that rail fares won't rise by July's RPI value of 12.3% in March 2023.
Instead, millions of commuters will pay 5.9% more for train tickets in March - the biggest hike in more than a decade.
What can I do about it?
Regular passengers may be able to cut the cost of standard anytime, off-peak, advance and first-class advance tickets by up to a third with a railcard.
You can buy these through National Rail but you'll need to pay a fee.
That said, if you regularly travel by train, you'll make up this cost in no time.
Cards for those aged 16-25 cost £30 a year, or £70 for a three-year card.
Don’t pay over the odds for tickets and remember to compare prices before you buy.
Then check the train operating companies' website or Trainline to see if cheaper fares are available.
But sites like Trainline will usually charge you to make a booking — between 25p and £1.50 — so factor that into your savings
2. Interest rate could rise - March 23
The Bank of England's Monetary Policy Committee (MPC) will meet twice every quarter to decide if interest rates need to rise.
The MPC will next meet to make any announcements on the Bank of England's base rate on March 23.
If the bank decides to raise interest rates further it will make the cost of borrowing, including loans, credit cards and mortgage repayments more expensive.
However, savings rates will get a boost as banks continue to battle it out by offering market-leading interest rates.
What can I do about it?
If you are due to come off a cheap fixed mortgage deal in the coming months, it's worth preparing to remortgage early.
Lenders typically move households onto a more pricey SVR once your mortgage deal comes to an end.
That means you could have been on one of the best mortgage deals and suddenly your monthly repayments will increase.
Lots of lenders now let customers lock in a new rate six months in advance.
Others will let you lock in a new rate at least three months ahead.
We've explained how you can find the best mortgage deals.
Savers wishing to boost their nest egg should search around to see if they can get better returns with another bank or building society.
3. Energy bill discount scheme ends - March 31
Millions of households started receiving a £400 energy bill discount from October 1.
The payment is dished out by your energy supplier and split across six instalments paid between October 2022 and March 2023.
The final £67 discount will arrive before the end of March.
It's unclear if the government will announce any further direct energy bill support in its Spring Budget.
What can I do about it?
We've listed how the leading energy suppliers are paying households.
But the way you'll be paid will depend on how you pay for your energy.
For most, the payment will be automatic but those on traditional prepayment meters will need to take action.
If you're on a traditional prepayment-meter, you'll be given a redeemable energy bill discount voucher or special action message (SAMs) in the first week of each month, issued via SMS text, email or post.
Customers will then need to redeem these at their usual top-up point.
Check with your supplier to confirm how you'll receive the cash.
4. Household Support Fund applications close - March 31
Hard-up households have been entitled to free cash and vouchers to help with the cost of living since October under the Household Support Fund.
Each council gets a different portion of funding depending on the size of the catchment area, population, and need.
And the vouchers or grants on offer vary by location and you'll have to check to see how your council will pay you.
Some councils are offering households up to £500 in free cash.
Most councils will close their applications for the scheme at the end of March but some have already shut theirs.
The government may announce another extension to the scheme during the Spring Budget like in previous years - but it remains unclear if they will do so right now.
What can I do about it?
Get your applications in quickly.
Check with your local council to see what's on offer and when applications for the scheme close.
You can find more details about your local council by using the postcode checker on Gov.UK.
5. Energy bills will rise - April 1
Energy bills for the typical household were initially set to be frozen at £2,500 for the typical household for two years.
But the Chancellor announced in November that it would only be in place for six months.
In the Autumn Statement, Jeremy Hunt said typical bills will rise to £3,000 in April.
This means the average household will see their bills rise by £500 a year.
The exact amount that your energy bills will rise by will depend entirely on your own usage - so if you use more than the average household, expect to pay more.
And while there's nothing you can do to stop these costs from rising, there is a whole host of government support in the pipeline to help hard-up households.
What can I do about it?
A £900 payment will be going to millions on means-tested benefits and Universal Credit in 2023.
To be eligible for the payment, households will need to be claiming at least one of the following:
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
- Tax Credits (Child Tax Credit and Working Tax Credit)
- Housing Benefit
- Council Tax Support
- Social Fund (Sure Start Maternity Grant, Funeral Payment, Cold Weather Payment)
- Universal Credit
Elderly Brits will receive another one-off £300 "Pensioner Cost of Living Payment".
Those with certain disabilities will also qualify for a further £150 cost of living payment.
Energy suppliers also offer plenty of energy grants and schemes open to help you out if you're struggling.
Ask your supplier what's on offer and how to apply.
6. Mobile, broadband and TV price hikes - March 31 - April 1
Millions of TV, broadband and mobile customers will face higher bills in the next couple of months.
Many telecom providers increase their prices annually based on the rate of inflation plus an extra 3.9%.
The current rate of inflation sits at 10.5%, so most bills will rise by 14.4% - however not all companies follow it exactly, which we've explained below.
Most BT, EE and Plusnet customers will see a rise from March 31.
On average, Virgin Media cable customers will receive a price increase of an average of 13.8% - though this will be higher or lower depending on the package.
Sky mobile customers will see their bills increase by £1 a month, or an average of 9%.
Shell customers will see bills go up by 13.5% from April 1.
Three has also confirmed its 14.4% price rise will impact all new and upgrading customers from March 31.
This should make it easier to decide whether to renew your contract or move to another provider.
However, if you do not want to switch and are happy with the service you're getting under your current provider - haggle for a better deal.
You can still make significant savings by renewing your contract rather than rolling on to the tariff you're given after your deal.
You could save up to £210 a year on your bills by haggling alone.
Knowing what other offers are on the market can help you to make a case for yourself to your provider.
If your provider won't haggle, you can always threaten to leave.
Companies don't want to lose customers and may come up with a last-minute offer to keep you.
Last but not least, it's worth investigating social tariffs.
These broadband packages and discounts have been created for people who are receiving certain benefits.
They're often available to those on income support, Universal Credit, or disability allowance.
Employers who do not pay the minimum wage can be publicly "named and shamed".
Those who blatantly fail to comply are also at risk of facing criminal prosecution.
8. Council tax rise - April 1
Millions of households will be hit by council tax rises of up to £99 a year from April.
Three-quarters of councils will hike the tax by 5% from April, according to the County Councils Network (CCN).
A 5% rise to the average Band D council tax bill would leave households £99 a year worse off.
Every year, councils decide how much to increase council tax bills by.
Of course, the amount your bill will rise by depends on where you live.
What can I do about it?
People on low incomes or benefits such as Universal Credit may be able to get a discount on their council tax.
This can vary between councils, but you could be exempt from paying any council tax at all.
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The schemes are means-tested, and will usually depend on your income and any children or adults living with you.
Single adults living in a property can get a 25% discount on their bill.
This is for people of all incomes and applies if they are the only adult living in the property.
The discount also applies if they live with a young person aged under 18, or someone aged 18 or 19 in full-time education.
A reduction could also be applied if there is a disabled person living in the property.
This is known as a disabled person’s reduction and each council has its own criteria.
You may also get 50% off your council tax if you live with someone who is severely mentally impaired.
9. Water bills up - April 1
Households will see the largest hike in their annual water bills in nearly 20 years when they rise to an average of £448 this spring.
The exact amount your bill will rise from this month will depend on where you live, how much you're charged and the rate it's increasing by.
Different areas of the country have a water company assigned to them.
And that company is responsible for setting the costs of bills and the rises for residents.
Unfortunately, you can't simply switch to another one when you're unhappy like you can with other utilities.
What can I do about it?
Moving to a water meter could help some save some extra cash.
One mum more than halved her water bill after getting a meter – saving over £200 a year.
Obviously, if you do use a lot of water then it makes no sense to have a meter as your bills could go UP.
The Consumer Council for Water offers a free water meter calculator that'll tell you if you can save by fitting a water meter.
For example, if you have a big family and more people than bedrooms or simply use lots of water-intensive appliances like washing machines or dishwashers, a fixed fee will be better for you.
Having a water meter doesn't help with the standard charge that's based on where you live either, but it can help you cut down the costs of your personal usage at home.
Part of that is how long you spend in the shower too.
According to Uswitch you could cut £70 from your energy bills and reduce your water bills too by reducing your wash time.
And leaving the water running while you brush your teeth could add £60 a year to your bills says Octopus.
The same goes for washing dishes, be sure you turn the tap off as if you’re doing it in the sink, leaving it running will add £25 to your annual bill.
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Many water companies offer free water-saving devices that shave pounds off your bills too.
Contact your supplier or check out savewatersavemoney.co.uk.