MILLIONS of households will see their bills soar in days as price hikes come into effect.
In April the cost of energy, gas, water, council tax, mobile phones, broadband, TV licence and car tax will all increase.
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The hikes will put pressure on hard up households who are already struggling with soaring food bills.
Food inflation shot up last month and prices saw the biggest increase in the last year.
Experts have warned that food prices could be up more than 4% by the second half of this year.
Meanwhile, debts that began during the energy crisis have reached record levels, which is putting huge pressure on families.
Read more on household bills
But there is some good news on the horizon.
Although bills are rising there are things you can do to reduce or even wipe out the increases altogether.
Here we explain what is happening and how you can cut your bills.
Energy and gas
Energy bills will rise by £111 to £1,849 a year as the price cap rises again.
The cap is set by the regulator Ofgem every three months.
It controls the maximum amount an energy firm can charge households for the units of gas and electricity they use.
Around 22 million households in England, Scotland and Wales are on a variable rate tariff, which rise and fall in line with the cap.
Ben Gallizzi, energy expert at Uswitch, said: “Households on standard tariffs will be affected by this price hike, so now is the time for them to find a better deal.
“There are a range of deals that are priced cheaper than current rates, with some of the biggest savings we’ve seen since March last year.”
The cheapest deal on the market comes from Outfox the Market and could save a typical household £239 a year compared to the April price cap.
How do I calculate my energy bill?
BELOW we reveal how you can calculate your own energy bill.
To calculate how much you pay for your energy bill, you must find out your unit rate for gas and electricity and the standing charge for each fuel type.
The unit rate will usually be shown on your bill in p/kWh.The standing charge is a daily charge that is paid 365 days of the year – irrespective of whether or not you use any gas or electricity.
You will then need to note down your own annual energy usage from a previous bill.
Once you have these details, you can work out your gas and electricity costs separately.
Multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type – this will give you your usage costs.
You’ll then need to multiply each standing charge by 365 and add this figure to the totals for your usage – this will then give you your annual costs.
Divide this figure by 12, and you’ll be able to determine how much you should expect to pay each month from April 1.
The deal lasts for 12 months and costs £1,610 a year.
It has a £25 per fuel exit fee, which means it could cost you £50 to leave the contract early.
Home Energy has a one-year deal that would save you £233 a year compared to the price cap.
It costs £1,616 a year and also has a £25 per fuel exit fee.
Ben Gallizzi adds: “It only takes a few minutes to run a comparison, so it’s worth seeing if you can beat the price rise.
“To see the deals available to you, along with the potential savings you could make, run a comparison online.”
You may be able to get £150 off your electricity bill if you receive certain benefits.
The Warm Home Discount Scheme is a one-off £150 discount off your electricity bill.
You qualify for it if you get the Guarantee Credit element of Pension Credit or are on a low income and have high energy costs.
If you are eligible your electricity supplier will automatically apply the discount to your bill.
Bill hike: £111
Potential saving: £239
Water bill
Water bills are set to increase by £123 a year from April, pushing up an average bill to £603.
But the exact amount each one will rise by varies significantly between regions.
For example, Southern Water customers will see their bills climb by 47% to £703 a year.
Meanwhile, Thames Water customers face a 31% hike and Yorkshire Water bills are rising by 29%.
One way to cut your bills is with a water meter.
If you do not have one then you are charged a set amount regardless of how much water you use.
Two in five households in England and Wales do not have a water meter and some of these could save money by switching.
Not everyone will be better off with a water meter but some households can save around £100 or more in some instances.
Unless you live in an area of England where metering is compulsory, you can trial a meter for up to two years and switch back during that time if you are unhappy.
The Consumer Council for Water has a calculator that can help you work out if you could save with a meter.
As a general rule of thumb, if you have fewer people than bedrooms in your house then a meter is likely to save you money.
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.
You could also save £50 a year by cutting your shower time by just two minutes a day.
Meanwhile, turning a tap off while you brush your teeth could save you almost £30 a year on your water bill.
Bill hike: £123
Potential saving: £100
TV licence
Meanwhile, the cost of a TV licence will rise by £5 to £174.50 on April 1.
This is only the second time the licence fee has increased since April 1, 2021.
It will rise in line with annual CPI inflation every year until the end of 2027.
You may be able to get a free TV licence if you are aged 75 or older and you or your partner who lives at the same address receive Pension Credit.
You can apply when you turn 74 and your payments will be adjusted automatically.
Meanwhile, if you live in a residential care home, supported housing or sheltered accommodation then you may be entitled to a reduced or even free TV Licence.
And if you are blind and can provide the right evidence then you could get a 50% concession.
Bill hike: £5
Potential saving: £174.50
Car tax
From April the flat rate cost of car tax will increase by £5 to £195 a year.
The exact amount your road tax will increase depends on the year your car was registered and the type of fuel it uses.
From next month electric vehicles will no longer be exempt from vehicle tax.
Electric vehicles that are registered from April 2025 will pay the lowest rate of £10 in the first year, then move to the standard rate.
The standard rate will also apply to electric vehicles that were first registered after April 2017.
You do not need to pay car tax if you get the:
- Higher rate mobility component of Disability Living Allowance
- Enhanced rate mobility component of Personal Independence Payment
- Enhanced rate mobility component of Adult Disability Payment
- Higher rate mobility component of Child Disability Payment
- War Pensioners’ Mobility Supplement
- Armed Forces Independence Payment
To be eligible the vehicle must be registered in the disabled person’s name or their nominated driver’s name.
It can only be used for the disabled person’s personal needs and cannot be used by the nominated driver for their own personal use.
You can only use your exemption on one vehicle at a time so if you have more than one car then you need to choose which one to be exempt.
If you are claiming for a vehicle for the first time then you must claim at the Post Office.
You need to do this every time you change your vehicle.
Bill hike: £5
Potential saving: £195
Council tax
Most local authorities will increase the council tax they charge by up to 5% from April 1.
The average council tax for a Band D property in England is £2,171.
A 4.99% increase would push this bill up to £2,279 a year – an increase of £108.
But some councils have been allowed to increase the amount they charge by up to 10%.
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 https://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.
East Lothian Council will increase its council tax bills by 10% next year.
This is equivalent to a hike of £2.76 a week for a Band D property.
Fife Council will push up council tax bills by 8.2% from April.
For a similar Band D property this works out as an extra £2.37 a week.
Meanwhile, North Lanarkshire council is set to hike its council tax bills by 6%, or £2.53 a week for a Band D property.
You may be able to knock hundreds of pounds off your council tax bill if you apply for a discount.
If you have a low income or claim certain benefits then you could get a council tax reduction worth up to 100%.
Meanwhile, if you live alone, share a property with a student or someone who is severely mentally impaired then you could get a 25% discount.
For someone who lives in a Band D property this could shave £569.75 off your bill.
Meanwhile, you may be able to save hundreds of pounds by challenging your council tax band.
Check the bands of properties of a similar size and value in your area.
You can challenge your band through the government website by visiting gov.uk/council-tax-bands.
Or call the Valuation Office Agency on 03000 501 501 if you live in England or 03000 505 505 if you are based in Wales.
But you should only do this if you genuinely believe you are in the wrong council tax band.
This is not without risks as your band may increase or decrease.
Meanwhile, an appeal could also result in your neighbours being bumped into a higher council tax band.
Bill hike: £108
Potential saving: £2,279
Mobile phone
Telecom giants BT, EE, O2, Three, Vodafone and Tesco Mobile will all hike the bills of tens of millions of customers from next month.
The exact amount your bill will rise depends on your provider.
For example, BT and EE will increase the cost of their Sim-only contracts by £1.50 a month from April.
Over the course of a year this would add £18 to your total bill.
Meanwhile, O2 will push up the amount it charges by £1.80 a month, or £21.60 a year.
Vodafone will increase the cost of its basic plans by £1 a month while those on a standard plan face a £1.80 increase.
At Three Mobile the exact amount the cost of your plan will increase depends on your contract price.
If you are struggling to pay your bill then you can ask your provider if they have any discounted social tariffs.
These are special contracts for people who claim Universal Credit, Pension credit and several other benefits.
They usually cost around £10 to £20 a month.
Swapping to one of these tariffs could save you £141.60 a year, compared to a £20 a month tariff increasing by £21.60 a year
If your contract has ended then you may be able to save money by switching deal or provider.
You can use a comparison website such as Compare The Market, Uswitch or Go Compare to look at different deals and find the best one for you.
Another option is to haggle with your phone provider.
Call your mobile provider and tell them you are thinking of leaving.
Usually they will offer to match a price from a competitor or they will give you a better deal.
Bill hike: £21.60
Saving: £141.60
Broadband
Broadband deals are also set to rise in weeks in another blow to households.
Under new Ofcom rules anyone who signs up for a broadband deal from January 17, 2025 will be given a fixed annual price increase.
Previously the amount your contract increases each year was tied to inflation figures, which meant some customers saw their bills rise by up to 14.4%.
Most broadband providers will increase their fixed rates by £3 a month, or £36 a year.
But Virgin Media will push up its prices by £3.50 a month, adding an extra £42 to your bill.
If you signed up to a contract before January 17 then the exact amount your bill will increase depends on your provider.
Virgin Media and Onestream are hiking their bills by 7.5%.
On a £20 a month contract this would be an increase of £1.50 a month, or £18 a year.
Meanwhile, BT, EE, Plusnet, Vodafone and Three will all push up their prices by 6.4%.
For the same £20 deal this would be an increase of £15.36, or £1.28 a month.
You may be able to cut your broadband bill by only paying for what you need.
If you do not use that much internet or do not need a super fast speed for streaming TV or gaming then you could save by downgrading to a cheaper package.
Or if you use a lot of broadband then look out for the word “unlimited” which means you can use as much as you need without being charged extra.
By doing this you could save up to £10 a month – or £120 a year.
Bill hike: £36 a year
Saving: £120 a year
