National Price Hike Day
Make a note in your calendars for this coming Monday April 1st as it marks the onset of National Price Hike Day. Prepare for increases in essentials such as water bills, broadband charges, council tax, and TV licensing fees.
It’s not all bad news however, the energy price cap is going down on the same day and the recent budget changes will kick in from April 6th.
We have highlighted 6 changes that will leave you worse off, and 5 that may put money into your pocket.
WORSE OFF
Council Tax
In England, most residents will face the maximum increase of 4.99%.
Over in Scotland, council tax remains frozen, thanks to government intervention. Meanwhile, in Wales, expect increases ranging from 3% to 21%. In Northern Ireland, where they use a rating system instead of council tax, rises are also on the horizon. Keep an eye out for updates as these changes unfold.
More detailed information is available from the Government website here.
TV and Broadband
If the broadband goes down for even 10 minutes we all feel that pain - it’s now become an essential in every household.
Starting April, brace yourselves for higher bills if you're with BT, EE, Plusnet, or Vodafone. They're hiking up prices by 7.9%, following the standard practice in the industry of tying their increases to December's inflation figure plus 3.9%.
Meanwhile, if you're a Virgin Media or O2 customer (post-2021 merger), expect an 8.8% increase as they base their hikes on the retail price index from January plus 3.9%. However, there might be exceptions where some O2 customers see smaller price rises.
And let's not forget about Sky – they're in on the action too, with most Sky TV and broadband subscribers facing an average increase of 6.7% starting April 1st.
TV licence
Check here if you need a TV licence. If you do, the annual fee for a standard colour TV licence is set to climb to £169.50. That's a £10.50 bump from the current price of £159 per year.
Water
Brace yourselves for a hike in water and sewerage bills starting on the 1st. According to Water UK, the average household in England and Wales can expect a 6% increase. This increase will result in households facing an average annual bill of £473. Prices vary depending on where you live and you can see a great summary from MoneySavingExpert here.
Train Fares
Fares in England and Wales rose by 4.9% on March 3rd. If you're in Scotland, be prepared for an 8.7% increase in rail fares come April, as the government argues that previous fare freezes weren't sustainable.
It seems like the cost of commuting is on the rise across the board, so keep an eye on those ticket prices as you plan your travel expenses.
Rent
Rent for those in social housing also goes up from on April 1st - for those in private rented accommodation any changes will typically be tied into when your tenancy is due for renewal.
The annual increase in rents is pegged to the CPI rate of inflation in September, which stood at 6.7%. So for the upcoming 2024-25 period, expect a limit of 6.7% plus an additional 1% on top of that. Shelter goes into more detail here.
BETTER OFF?
National Insurance (NI)
As highlighted in our 2024 budget announcement Chancellor Jeremy Hunt announced the starting rate for NI will drop from 10% to 8% starting April 6th.
This move is set to benefit over 25 million workers, according to Hunt, with the average employee on a £35,000 salary seeing around £450 extra in their pocket each year.
Two million self-employed workers will also see a cut in their NI rate, dropping from 8% to 6%. For someone earning £28,200, that's £350 saved.
The table below shows how someone will benefit from April 2024.
| Salary | Savings | Savings (if self-employed) |
|---|---|---|
| £25,000 | £435 | £294 |
| £40,000 | £960 | £444 |
| £60,000 | £1,320 | £556 |
| £80,000 | £1,320 | £556 |
| £100,000 | £1,320 | £566 |
Energy Price Cap
Starting April 1st and lasting until June 30th of this year, the price cap for a typical household using both electricity and gas will drop to £1,690 annually.
That's a welcome £238 (12%) reduction compared to the previous cap from January 1st to March 31st of this year.
Please remember, this is the average price the average household will pay - how much you will pay depends on how much you use.
Child Benefit
The threshold for reducing or removing child benefits is getting a boost.
Currently, for every £100 earned over £50,000, recipients lose 1% of their benefit, and at £60,000, it's entirely phased out.
From April onward, the benefit won't start diminishing until one parent earns over £60,000. And even then, it won't disappear completely until one parent hits £80,000. Remember the limits are based on one parent’s income - so, for example, if both parents earn £45,000 each (£90,000 in total), the benefit isn’t lost.
Benefits
In April, benefits and tax credits tied to inflation will see an increase of 6.7%, matching the level of CPI back in September.
For those on joint claims over the age of 25, Universal Credit standard allowances are getting a boost too. They'll rise from £578.82 to £617.60 per month. This increase aims to provide some relief and support to individuals and families during these challenging times.
Minimum Wage
For those aged 21 and over, the minimum wage will rise to £11.44 per hour, marking an increase of £1.02 or 9.8%.
Further details, including for those aged 18-20 and apprentices can be found on the Government website here.
SUMMARY
As you can see, there are a number of changes taking place this time of year. A number of increases are being passed through in April alongside some potential relief elsewhere.
Whether you’re better off or not will depend on your individual circumstances but we hope this guide has helped give you more information.
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Remember the information provided in this article is for information purposes only and should not be considered as advice.
