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.
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.
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.
[bc_video account_id=”5067014667001″ application_id=”” aspect_ratio=”16:9″ autoplay=”” caption=”Save money on your energy bills with these cold weather tips” embed=”in-page” experience_id=”” height=”100%” language_detection=”” max_height=”360px” max_width=”640px” min_width=”0px” mute=”” padding_top=”56%” picture_in_picture=”” player_id=”default” playlist_id=”” playsinline=”” sizing=”responsive” video_id=”6343605830112″ video_ids=”” width=”640px”]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.
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.
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
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%.
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