Strain on Family Finances
Households across the UK are bracing for financial strain as a mix of rising bills and benefit changes come into effect. While some costs are increasing, there are also cuts to national insurance and hikes in benefits to consider. Families, such as that of new mum Rachel Aitken, are feeling the pinch, with careful budgeting becoming more necessary than ever.
Telecom Price Hikes Amid Cost of Living Crisis
Amidst the cost of living crunch, broadband and mobile phone providers are implementing mid-contract price rises of up to 8.8%, based on inflation rates plus additional charges. Although currently permissible, this practice is expected to be prohibited by regulators by the year’s end. Consumer group Which? has condemned these increases, advising customers to check contract statuses and potentially switch providers without incurring fees.
Water Bills Flow Upwards
The cost of water and sewerage services is set to swell by 6% in England and Wales, with an average annual increase of £27, while Scottish water and waste charges will surge by 8.8%. Regional disparities and metered usage mean actual bills will vary. Water companies face criticism over environmental concerns, but support schemes like WaterSure may offer some relief for eligible households.
Council Tax Climbs as Local Services Demand More
Most areas will see a council tax increase to fund essential services, with a cap of 4.99% in England for authorities with social care duties. Some areas, like Birmingham, have government approval to exceed the 5% threshold. In contrast, Scotland anticipates a freeze until 2025. Discounts may apply to certain households, including those with disabilities or students.
Additional Costs Creep Up
April brings a raft of other fee increases, including a 6.6% rise in the TV licence fee, now £169.50. Vehicle tax is also going up, with the rate for newer cars increasing by £10. NHS dental charges in England are climbing by 4%, affecting the cost of standard check-ups and treatments, although some groups remain eligible for free care.
Energy Bills: A Glimmer of Good News
There is a slight reprieve for energy consumers as the annual bill for typical gas and electricity usage drops to £1,690, the lowest in two years. Ofgem’s new price cap, effective from April 1, will reduce the typical bill by £238 annually. However, fixed standing charges are on the rise, and the total bill will still reflect actual energy consumption.
As households navigate these financial changes, there may be opportunities for support through benefits and assistance schemes, providing some aid in these challenging times.
