Mobile and broadband
Companies are currently introducing mid-contract price hikes of up to 8.8%. Currently they’re allowed to do this, but it looks like regulators will be putting a stop to this soon.
Big names like BT, EE, Plusnet, Shell Energy, TalkTalk, Virgin Media and Vodafone adjust their prices every April in line with the Consumer Price Index (CPI) or Retail Price Index (RPI).
According to Uswitch, this means that on average, people will end up paying around £27 more per year for broadband and an extra £2.40 per month for mobile plans.
If you have a mobile or broadband plan, check whether you’re still in a contract. If you’re not, looking around for a cheaper option could save you from overpaying. You can check by texting “info” to 85075 for free.
Council tax
In many areas, residents will see a rise in council tax or its equivalent, although Scotland is set to freeze these rates until 2025. In England, local authorities responsible for social care are allowed to increase council tax by up to 4.99% without the need for a public vote, while other councils can implement hikes of up to 2.99%.
Certain areas can push their increases beyond 5% with approval from the Government. For example, Birmingham is set to see a 21% rise in council tax over two years. Meanwhile, in Wales, proposed increases are ranging between 5% and 11% and in Northern Ireland, domestic rates are expected to climb between 4% and nearly 10%.
It’s worth noting that in specific households, including those with single occupants, individuals with disabilities, or student residences, may qualify for discounts on council tax bills.
Water bills
The cost of water bills is increasing across England and Wales, with the average annual cost for water and sewerage services increasing by 6%, which translates to an additional £27, bringing the total to £473. In Scotland, people are facing an 8.8% hike in water and waste charges, adding another £36 to their bills.
There aren’t currently any water charges in Northern Ireland but there’s talks about possibly introducing these in the future.
It’s important to remember that the actual bill you receive might vary quite a bit depending on where you live and how much water you use, especially for those using a water meter.
See our guide on How to Save Money on Household Bills for money saving tips.
TV, car and dental fees
TV licences are increasing from £159 to £169.50 after staying the same for the last two years. However, for any household where someone is aged 75 and over and receives the means-tested pension credit, you’ll get your TV licence for free. If you’re registered blind, you’ll get a 50% discount.
The Government confirmed in the Autumn statement that road tax will be adjusting according to the RPI starting April 1. This change means if your car was registered after April 1 2017, you’ll likely see your tax go up from £180 to around £190 for the year. But, if you’re driving an older model or car that produces higher carbon dioxide emissions, expect to shell out a bit more.
NHS dental charges in England are set to rise by 4%. So, the next time you’re in for a standard check-up, it’ll cost you £26.80—a £1 increase. Remember, certain people can still qualify for free dental care such as those who are pregnant.
Energy bills to fall
On a positive note, the average household energy bill is dropping to its lowest in two years. This change comes after Ofgem decided to lower its price cap in light of falling wholesale prices. From April through to June, gas prices will be capped at 6p per kWh, down from 7.42p, and electricity at 24p per kWh, a drop from 28.62p.
This means the regulator is slashing its price cap by 12.3%, moving from £1,928 to £1,690 for a typical dual fuel household in England, Scotland and Wales.
This is a saving of £238 per year, or about £20 a month. While this cap doesn’t cover Northern Ireland, since it has its own energy market, prices are expected to fall there too, with potential savings of around £110 a year.
Check if you’re eligible for benefits
If you’re struggling with the cost of living, you should check if you can claim benefits or increase your current benefits.
You might be able to claim certain benefits even if you work, have savings or own a home.
You can use MoneyHelper’s benefit calculator to check if you’re eligible.
