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Household bills have begun rising in April, with a raft of increases set to make it harder to make ends meet. Everything from council tax to water bills are rising at the start of the new tax year, and it is important to understand what is changing so you can deal with it accordingly.
Council tax is set to rise by around 5%,with seven areas being given permission to impose higher increases, according to information from AJ Bell. Sadly, you can’t do much to change your council tax, apart from move to a smaller property. But you should double check your property is being taxed in the correct band.
Danni Hewson, head of financial analysis at AJ Bell, said: “About as welcome as a pothole at the end of the road or the bin collectors going on strike, the rise means the average Band D bill has increased by more than a quarter in 5 years, up from £1,898 in 2021 to £2,392 a year in 2026.”
How other bills are rising
Water bills are set to rise across England and Wales, with an average increase of 5.4%, but the size of the increase will depend on where you live. Even the average rise could add an extra £33 a year to your water bills.
Broadband is also set to go up by £3 to £4 per month for those who are on contract, depending on which provider you’re with. If you’re just out of a contract, you may find your price increase considerably higher, but by shopping around for the best deal you could save money.
Ms Hewson said: “That’s also the case for mobile phone contracts and quickly texting the word ‘INFO’ to85075 will helpfully tell you if you are still in contract, when it ends and if there are any exit fees to pay. Again, shopping around can save you pounds especially when it comes to sim only deals.”
Are energy bills rising too?
Unusually, the energy price cap has fallen in April, as the Government’s decision to shift some green levies into general taxation provides some energy bill relief.
This means the average dual fuel household bills should fall by around £117 a year, slightly less than the £150cut promised, said Ms Hewson. But it is important to enjoy the benefits while they last, as geopolitical tensions are set to make them short-lived.
Ms Hewson added: “The gains will be short lived thanks to the Iran war which has sent energy costs surging again and July’s price cap is expected to rise by at least £300 a year. While long days and summer weather will help take some of the sting out of that increase; the big worry is where the next price cap will be set.
“Households on fixed tariffs will still be cushioned until their current deal comes to an end but finding a new deal may prove difficult with many tariffs having been taken off the market.”
We can help you meet your obligations
If you need to see how you can make your money go further, and to ensure you’re claiming all the allowances you can to help offset these price rises, then please get in touch and we would be happy to give you the guidance you need.