Household Bill Increases Begin in April: A Comprehensive Overview
Significant hikes in energy, water, council tax, broadband, and television licence fees take effect as households brace for higher expenses.
As April commences, households across England and Wales are facing multiple increases in their utility bills, taxes, and more, a period commonly referred to as “awful April.”
Effective from April, Ofgem's adjustments to the energy price cap will lead to an average monthly increase of £9.25, totaling an annual hike of £111 for households paying by direct debit.
The new energy price cap raises the average household energy bill from £1,738 to £1,849.
Specifically, the unit price of gas will see a rise from 6.34 pence per kilowatt-hour (kWh) to 6.99 pence per kWh, while the price of electricity will increase from 24.86 pence per kWh to 27.03 pence per kWh.
Households are encouraged to provide accurate meter readings to ensure that their energy consumption before these price changes is billed at the lower rates.
In addition to energy price increases, water bills for households in England and Wales are set to rise significantly, with the average bill increasing by £86 over the next year alone.
In total, regulator Ofwat has permitted a 36% increase over the next five years to finance a £104 billion upgrade for the water sector, projecting average bills to reach £597 by 2030. This year alone, some regions are experiencing substantial hikes, with Southern Water customers facing a 53% increase and Severn Trent households seeing a 47% rise.
Unlike energy suppliers, households in the water sector have no choice of supplier, limiting their options for reducing costs.
On April 1, millions of households will also encounter increases in their council tax bills, with many local authorities in England raising typical band D rates by 5%, amounting to a £109 increment, pushing the new total to £2,280 from the previous year's £2,171.
Several councils have received approval to impose even steeper hikes, with some areas in Berkshire, London, West Yorkshire, Birmingham, Somerset, and Greater Manchester potentially increasing rates by up to 10%.
In Wales, council tax is anticipated to rise by approximately 4.5% to 9.5%, while in Scotland, the increase is projected at a minimum of 8% after a two-year freeze.
Broadband customers can expect average annual price increases of £21.99, with newer plans potentially rising by as much as £42, particularly affecting those with inflation-linked contracts.
Correspondingly, mobile users on similar contracts will see an increase of £15.90 on average, with newer deals witnessing rises of up to £48. Customers under broadband contracts should review their contract terms for opportunities to switch providers without incurring penalties, as switching to a new deal at the conclusion of an initial contract could yield savings of up to £180 annually.
Furthermore, the fee for a standard colour television licence will increase by £5, bringing the annual fee to £174.50, while the cost of a black and white licence will rise from £57 to £58.50. Citizens aged 75 or older may be eligible for a free television licence if they claim pension credit or cohabitate with a beneficiary of that benefit.
Lastly, car tax for vehicles registered after April 2017 will see a £5 increase, raising the standard rate to £195 starting April 1. The specific tax rate, however, varies based on the vehicle's registration date and fuel type.
Additionally, this is the first year that owners of electric vehicles (EVs), which have been tax-exempt previously, will face a nominal fee of £10 in the first year, escalating to the standard rate of £195 from the second year onward.
Effective from April, Ofgem's adjustments to the energy price cap will lead to an average monthly increase of £9.25, totaling an annual hike of £111 for households paying by direct debit.
The new energy price cap raises the average household energy bill from £1,738 to £1,849.
Specifically, the unit price of gas will see a rise from 6.34 pence per kilowatt-hour (kWh) to 6.99 pence per kWh, while the price of electricity will increase from 24.86 pence per kWh to 27.03 pence per kWh.
Households are encouraged to provide accurate meter readings to ensure that their energy consumption before these price changes is billed at the lower rates.
In addition to energy price increases, water bills for households in England and Wales are set to rise significantly, with the average bill increasing by £86 over the next year alone.
In total, regulator Ofwat has permitted a 36% increase over the next five years to finance a £104 billion upgrade for the water sector, projecting average bills to reach £597 by 2030. This year alone, some regions are experiencing substantial hikes, with Southern Water customers facing a 53% increase and Severn Trent households seeing a 47% rise.
Unlike energy suppliers, households in the water sector have no choice of supplier, limiting their options for reducing costs.
On April 1, millions of households will also encounter increases in their council tax bills, with many local authorities in England raising typical band D rates by 5%, amounting to a £109 increment, pushing the new total to £2,280 from the previous year's £2,171.
Several councils have received approval to impose even steeper hikes, with some areas in Berkshire, London, West Yorkshire, Birmingham, Somerset, and Greater Manchester potentially increasing rates by up to 10%.
In Wales, council tax is anticipated to rise by approximately 4.5% to 9.5%, while in Scotland, the increase is projected at a minimum of 8% after a two-year freeze.
Broadband customers can expect average annual price increases of £21.99, with newer plans potentially rising by as much as £42, particularly affecting those with inflation-linked contracts.
Correspondingly, mobile users on similar contracts will see an increase of £15.90 on average, with newer deals witnessing rises of up to £48. Customers under broadband contracts should review their contract terms for opportunities to switch providers without incurring penalties, as switching to a new deal at the conclusion of an initial contract could yield savings of up to £180 annually.
Furthermore, the fee for a standard colour television licence will increase by £5, bringing the annual fee to £174.50, while the cost of a black and white licence will rise from £57 to £58.50. Citizens aged 75 or older may be eligible for a free television licence if they claim pension credit or cohabitate with a beneficiary of that benefit.
Lastly, car tax for vehicles registered after April 2017 will see a £5 increase, raising the standard rate to £195 starting April 1. The specific tax rate, however, varies based on the vehicle's registration date and fuel type.
Additionally, this is the first year that owners of electric vehicles (EVs), which have been tax-exempt previously, will face a nominal fee of £10 in the first year, escalating to the standard rate of £195 from the second year onward.
