Full list of major money changes coming in April including bill rises and direct payments – will you be better off?
APRIL is set to bring a host of changes that could hit your pocket – here’s what you ned to know.
Spring will bring changes to council tax, mobile and broadband bills and prescription charges to name just a few.
And while there are plenty of price hikes on the way, there is some good news too.
April is the start of the new tax year, which runs mid-year rather than according to the traditional calendar.
It’s often the time of the year when changes are made to rules affecting your money.
From bill rises to direct payments, where’s what you need to know about all the changes coming next month and how to prepare.
Bill hikes
Council tax – April 1
Many local councils are planning to increase council tax payments this year to balance their budgets.
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.
Confirmation of rises is usually shared at the beginning of the new financial year in April.
More than a dozen councils have already laid out their proposed hikes.
You should check what council tax bracket your home falls under by entering your postcode on the government website.
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 gov.uk website.
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.
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.
You might also be able to reduce the amount of council tax you pay by challenging your band.
Properties across the UK are put into a band from A to H, and this informs how much council tax you pay.
It’s worth checking yours to see if you could get a discount, but you could find your property is moved up up a band and your bill could increase.
Mobile and broadband hikes – from April 1
Many telecoms 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 customers will see their bills increase from April 1, though some customers will see an increase sooner.
The majority of BT, EE and Plusnet customers will see a rise from March 31.
This includes broadband, landline, mobile and TV customers.
However, BT Home Essentials, EE Mobile Basics, Pay-As-You-Go, BT Basic and Home Phone Saver customers will see their prices frozen through 2023.
The rise will affect customers even if they are signed up to a contract with a fixed price.
Impacted customers will see their bills increase from either April 1 or May 1 but Virgin will confirm which date yours will change in an email.
Shell customers will see bills go up by 13.5% from April 1.
For example, if you’re paying £20 a month, you’d likely end up paying £21 a month once the change comes in.
Three has also confirmed its 14.4% price rise will impact all new and upgrading customers from March 31.
The increase will affect all Three customers who have taken out a contract since November 1.
Similarly, TalkTalk customers will see their bills go up from April 1 too.
The provider will hike prices by 14.2%.
What can I do about it?
Switching contracts when yours is up is the single best way to save money on your telecom bills.
In the weeks before your contract is up, use comparison sites to familiarise yourself with what deals are available.
But as these are mid-contract rises, you will need to check if there is a penalty for leaving a deal early.
It’s a known fact that new customers always get the best deals.
Sites like MoneySuperMarket and Uswitch all help you customise your search based on price, speed and provider.
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.
If you need to speak to a company on the phone, be sure to catch them at the right time.
Make some time to negotiate with your provider in the morning.
This way, you have a better chance of being the first customer through on the phone, and the rep won’t have worked tirelessly through previous calls which may have affected their stress levels.
It pays to be polite when getting through to someone on the phone, as representatives are less inclined to help rude or aggressive customers.
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.
Around 4.2million households are eligible for these cheaper tariffs but only 55,000 are making use of them.
Prices start from £12.50 a month, so ask your provider what’s on offer.
Water bills – April 1
Households usually have to fork our for their water supply each April when companies put up bills.
This year will see the largest hike in 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 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.
Any hikes in water bills will be announced in the new year.
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.
Many water companies offer free water-saving devices that shave pounds off your bills too.
Contact your supplier or check out savewatersavemoney.co.uk.
Prescription charges – April 1
England is the only country in the UK that still charges for prescription meds.
Meanwhile Scotland, Wales and Northern Ireland scrapped the charges more than a decade ago.
Prescription charges were frozen at £9.35 per item last April to help Brits cope with the cost of living crisis.
But now the Department of Health and Social Care said it will apply an inflationary rate of 3.21 per cent.
This means, an NHS prescription will cost £9.65 from April 1.
The cost of prescription pre-payment certificates (PPCs) will also be increased: 3-month PPC increases by £1 to £31.25 and 12-month PPC increases by £3.50 to £111.60.
What can I do about it?
A prescription prepayment certificate (PPC) could save you money if you have 12 or more prescriptions dispensed each year.
The certificate covers all your NHS prescriptions for a set price.
You can buy a PPC on the NHS Business Services Authority website.
Millions of Brits are eligible for free prescriptions, including those over 60, those under 16, and those 16 to 18 in full-time education.
You can also get your prescriptions for free if you’re pregnant or have a medication exemption certificate.
You’re also entitled to free prescriptions if you or your partner (including civil partner) receive, or you’re under the age of 20 and the dependant of someone receiving:
- Income support
- Income-based jobseeker’s allowance
- Income-related employment and support allowance
- Pension credit guarantee credit
- Universal Credit
Car tax rise – April 1
Car tax will rise in April in a blow for millions of motorists.
Vehicle Excise Duty will be uprated from April 1 by the rate of RPI for cars, vans and motorbikes – 10.1%.
In good news for the haulage sector, VED rates will be frozen for lorry drivers from the same date.
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 he road.
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.
If you want to check how much more you will pay from April 1, you can work out the maths yourself.
You just have to go on the Government’s page on Vehicle tax rates and then scroll down to the option that best matches your car, bike or van.
Take the cost, divide it by 100, then multiply that by 10.1%. You then add that figure on to the original figure you would currently pay and you’ve got the new amount.
For example, if you had to pay £150 vehicle tax based on current rates, you will have to pay £165 from April 1.
If you had to pay £230 based on current rates, you will have to pay £253.23 from April 1.
If you’d pay £585 now this will go up to £644 from next month.
What can I do about it?
There’s a few things you can do to save money when buying vehicle tax.
If your car is in band B or above, you can pay for the whole year up front, every six months or monthly.
But, it’s usually cheaper to pay for the whole year up front.
You’ll save yourself some money by buying a car that runs on alternative fuels such as ethanol.
If you’ve got an electric vehicle, you don’t have to pay tax until April 2025.
So if you’ve got the budget and are looking at buying a new car, you could invest in an electrical one.
Energy bill rise – April 1
Even with the energy price guarantee being frozen until June 30, most people will see their energy bills rise next month.
This is because the energy bill support scheme, which has seen £67 knocked off all household energy bills since October, has come to an end.
The government’s energy price guarantee (EPG), has frozen average bills at £2,500 a year until June.
Experts are predicting that after this, the average bill could fall below this, to £2,200 from July.
But as this is only an estimate for a typical household – if you use more energy you’ll pay more.
What can I do about it?
The best way to lower bills at the moment is to look at how you can be more energy efficient.
In the short-term there may be easy switches you can do, such as turning of energy guzzling “vampire appliances” or by tweaking your thermostat setting.
Small simple tweaks could save you hundreds of pounds.
If you’re struggling to pay your bill then you should ask your supplier for help, as they may have a fund that you can apply for to get discounts off your bills or to help pay off debts.
You could also get in touch with your local council to see what help it is offering under the Household Support Fund.
Other money changes
National Living Wage increase – April 1
Millions of workers will see their pay checks go up within days, giving them an increase of £1,600 a year.
The 10% hike will see the national living wage rise from £9.50 to £10.42 an hour from April 1.
The move will mean a payday rise for more than 2.5 million Brits.
People on the national living wage will see their pay packets increase by 92p which means an additional £32.20 a week and £1,674.40 a year.
£900 cost of living payment – April 25
Around eight million households on certain benefits, including Universal Credit, are set to get the first part of the £900 cost of living payment from April 25.
It’s part of the government’s package of support that is designed to help with spiralling bills and essentials.
And the cost of living payments will arrive in most people’s bank accounts before May 17.
The first payment is worth £301, with two more instalments – worth £299 and £300 – coming this autumn and Spring 2024.
The cost of living cash will be paid in the same way as your usual benefit payment, for example, into the same bank account where you get Universal Credit.
It will be a separate payment on top of your usual benefit that you get in April.
Those eligible for the tax-free payment won’t have to do anything as it will be made automatically.
The full list of benefits that qualify people for the payment is:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension credit
If you were receiving any of the above benefits between January 26 and February 25 this year you will receive the £301 payment.
If you were later found to be entitled to any of the above benefits between January 26 and February 25 you will be eligible for the payment too.
The DWP said those on tax credits only will receive their payment from HMRC after the DWP payments begin.
But the government department did not give a specific date for when these payments will be made.
Universal Credit and benefit payments rise
Universal Credit and a range of other benefits will go up in line with inflation from last September – 10.1%.
But the dates they will rise will vary depending on the type of benefit you get and when you normally get paid.
For example, Universal Credit rates are rising from April 10.
But rates for housing benefit and council tax support are going up from April 1 for those who pay rent monthly.
Means-tested benefits, including Income Support and income-based Jobseeker’s Allowance, will go up on the first Monday after April 6, the start of the new tax year.
You can see the full list of benefits that are set to go up here, as well as how much the payments will rise by.
Change to pension savings limit – April 6
The lifetime pension allowance (LTA) will be abolished in April in an effort to keep people in work for longer.
The lifetime allowance currently stands at £1.07million, with savers incurring tax after that personal pension pot threshold has been exceeded.
The pension lifetime allowance was first applied in 2006, when it was set at £1.5 million.
It rose to a peak of £1.8million by 2012 before gradually being cut.
The annual allowance rate for pensions will be increased by 50% from £40,000 to £60,000 from April 6.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk