BILL PAIN
Four major household bills rising by up to £234 a year in HOURS – and how to soften the blow
But it's not all bad news
MILLIONS are facing a barrage of bill hikes in hours - but there are always ways to avoid paying more.
With the next tax year starting in April, many price increases will start to kick in, and billpayers need to be prepared.
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Council tax, broadband, mobile and TV bills, are set to rise along with water bills and vehicle excise duty.
However, it's not all bad news as the National Living Wage for those over 21 will rise from £10.42 to £11.44 from April 1.
The government is also axing Class 2 National Insurance contributions (NICs) and cutting one percentage point off the rate charged for Class 4.
National Insurance is a tax paid on earnings, and these two changes combined will save two million self-employed workers £350 a year from April 6.
Benefit payments will rise by 6.7% from April too, in line with the consumer price index (CPI) level of inflation for September 2023.
The payment boost means that the average family on Universal Credit will be around £470 a year better off.
Another spot of good news is that energy bills are set to fall.
However, we've explained how you can soften the blow of the four major bill hikes below.
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1. Broadband, TV and mobile price hikes - up to £50 a year
Millions of broadband, mobile and TV customers will be hit by huge bill hikes at the end of the month.
This is because telecom providers usually raise the prices of their contracts in the Spring.
Providers usually increase their prices annually based on the rate of inflation plus up to 3.9% more.
December's CPI figure (4%) or January's RPI figure (4.9%) are used by many mobile and broadband companies to hike prices.
The increases will come into effect for millions of customers on March 31 on April 1.
This means the new rate will kick in from your next bill after that date.
The increase will affect customers even if they're signed up to a contract with a fixed price.
This is because many firms have mid-contract price rises written into their terms and conditions.
The exact amount more you'll have to pay will depend on how much your bill is now but some will see their bills rise by up to £50 a year.
BT, EE and Plusnet will all hike customer charges on March 31.
The remaining telecom giants will raise charges on April 1.
We've previously revealed how much prices will rise under 11 different providers in the Spring.
How I can I cut broadband, TV and mobile costs?
THE simplest way to save more of your hard-earned cash is by switching your supplier when your contract expires.
If you're outside the minimum term of your contract, then you won't need to pay a cancellation fee - and you might be able to find a cheaper deal elsewhere.
You might be charged an exit fee if you're still in your contract period.
But don't just switch contracts because the price is lower than you currently pay.
Look at how much speed you need for broadband, how many minutes and texts you need, and how much data you're using on your mobile to find out which deal is best for you.
Use comparison websites like MoneySupermarket and Uswitch to compare the best tariffs and phone prices.
2. Council tax rises - up £103 a year
Nearly all local authorities in England and Wales will hike the tax by the maximum amount in April.
Of the 136 authorities which have already announced their council tax proposals for the coming year, 128 (94%) are looking to increase bills in April by 4.99%.
This is the largest amount allowed by the government without having to hold a local referendum.
At the same time last year 75% of councils intended to impose the maximum rise, according to the County Councils Network (CCN), which released the figures.
The 5% rise equates to £103.25 extra a year for the typical Band D property, which is currently £2,065.
Elsewhere, The Sun revealed earlier last month that certain areas have been handed special permission to hike bills by 10%, so the same annual bill could increase by £206.50.
Keep an eye on your council's website for information on its budget plans for the 2024/25 financial year - which will include information on any rate hikes.
Check which council tax band your property falls under to work out how much the increase will cost you.
You can find your local authority by visiting www.gov.uk/find-local-council.
You'll usually be sent a council tax bill in April outlining how much you need to pay.
Residents can choose to make payments over 10 months.
You can also opt to pay instalments over 12 months if you prefer.
What council tax support is available?
THERE are several ways you can get discounts and reductions on your council tax bill.
In some cases, you can even get the bill completely wiped with a council tax reduction.
Factors such as your household income, whether you have children, and if you receive any benefits, will influence what you get.
To apply, visit //www.gov.uk/apply-council-tax-reduction.
You'll need your National Insurance number, bank statements, a recent payslip or letter from the Jobcentre, and a passport or driving licence when filling out the details.
Below, we reveal all the ways you can get discounts or a reduction on your bill:
Single person discount
If you live on your own, you can get 25% off your council tax bill.
This also applies if there is one adult and one student living together in a property, or if there is one adult and one person classed as severely mentally impaired in the home.
If you live with someone who doesn't have to pay council tax, such as a carer or someone who is severely mentally impaired, you could get a larger reduction too, of up to 50%.
And, if you live in an all-student household, you could get a 100% discount.
Retirees
Pensioners may also find themselves eligible for a council tax reduction.
If you receive the Guarantee Credit element of Pension Credit, you could get a 100% discount.
If not, you could still get help if you have a low income and less than £16,000 in savings.
And a pensioner who lives alone will be entitled to a 25% discount too.
Low-income households
If you are on a low income or receiving benefits, you could be eligible for a reduction on your council tax.
Whether you are eligible will vary depending on where you live.
You could also get a deferral if you're struggling to pay your bill, or you can speak to your council about setting up a payment plan to manage the cost.
But one thing to remember is if you are struggling you should contact your council as early as you can.
3. Water bill hikes - up £71 a year
Millions of households will see their water and sewerage bills rise by up to £71 a year from April 1.
Wessex Water and Anglian Water are at the top end of the scale, with average bills set to increase to £548 and £529, respectively, while Northumbrian customers will see the lowest average bills of £422.
Water UK said firms would invest a record £14.4billion in return for customers' money to ensure supply security and "significantly reduce" the amount of sewage in rivers and seas.
The rise comes amid ongoing regulatory concern over dividends paid out by water firms to shareholders amid the cost of living crisis and public fury about sewage overflows into waters.
Water UK said bills were rising less than in the previous financial year and argued that they would be around £60 higher today if they had kept pace with inflation since 2014.
What water bill support is available?
IT'S always worth checking if you qualify for a discount or extra support to help pay your water bill.
Over two million households who qualify to be on discounted social water tariffs aren't claiming the savings provided, according to the Consumer Council for Water (CCW).
Only 1.3million households are currently issued with a social water tariff - up 19% from the previous year.
And the average household qualifying for the discounted water rates can slash their bills by £160 a year.
Every water company has a social tariff scheme which can help reduce your bills if you're on a low income and the CCW is calling on customers to take advantage before bills rise in April.
Who's eligible for help and the level of support offered varies depending on your water company.
Most suppliers also have a pot of money to dish out to thousands of customers who are under pressure from rising costs - and you don't have to pay it back.
These grants can be worth hundreds of pounds offering a vital lifeline when faced with daunting water bills.
The exact amount you can get depends on where you live and your supplier, as well as your individual circumstances.
Many billpayers across the country could also get help paying off water debts through a little-known scheme and even get the balance written off.
Companies match the payments eligible customers make against the debt on their account to help clear it sooner.
If you're on a water meter but find it hard to save water as you have a large family or water-dependent medical condition, you may be able to cap your bills through the WaterSure scheme.
Bills are capped at the average amount for your supplier, so the amount you could save will vary.
The Consumer Council for Water estimates that bills are reduced by £307 on average through the scheme.
4. Vehicle Excise Duty hike - up £10 a year
Last year, vehicle excise duty (VED) rates increased by 10.1% to keep in line with inflation.
HMRC has confirmed that the rates for each car tax band will increase again from April 2024.
Annual VED charges will rise across the board in line with retail price index (RPI) inflation, but some owners will face a staggering £140 rise.
Vehicle Excise Duty is an annual tax you have to pay to have your car on the road.
You have to pay the tax when the vehicle is first registered.
You then have to pay the tax from then on to maintain having your vehicle on the road.
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The exact amount your VED will go up from April 1 depends on the type of vehicle you own, as you pay different amounts based on its weight.
Your rate is different based on when you registered your vehicle too.
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