Nine ways to cut costs as awful April bill rises to hit households – your ultimate guide to save £6,694
MILLIONS of households will see their bills soar next week when awful April price hikes hit.
The rises could cost the average household £416 extra per year.
Here we explain how to avoid the hikes and cut your costs now as part of our “Awful April” series…
Energy and gas – save £291
Energy bills will increase by £111 to £1,849 a year when the price cap rises on April 1.
The cap is set every three months by the regulator Ofgem.
It limits the maximum amount an energy firm can charge households for the units of gas and electricity they use.
Around 22million households in England, Scotland and Wales are on a variable rate tariff, so their bills change in line with the cap.
Those who have locked into a fixed deal will not be affected.
Ben Gallizzi, energy expert at Uswitch, said households should consider locking into a fixed deal now.
He said: “There are a range of deals that are priced cheaper than current rates.
“It only takes a few minutes to run a comparison, so it’s worth seeing if you can beat the price rise.”
The cheapest deal at the moment comes from Outfox the Market and could save a typical household £291.21 compared to the April cap.
You can find the best deal by using a comparison website including Uswitch or MoneySupermarket.
Water – save £100
Water bills are set to increase by £123 a year from April 1, pushing up the average bill to £603.
The exact amount your bill will increase depends on where you live.
Southern Water customers will see their bills climb by 47% to £703 a year.
Meanwhile, Thames Water bills are rising by 31%.
You may be able to save money with a water meter.
As a rule of thumb, if you have fewer people than bedrooms in your house then a water meter is likely to save you money.
Installing one of these devices could save you around £100, according to the Consumer Council for Water.
TV licence – save £174.50
The cost of a TV licence will rise by £5 to £174.50 in April.
You may be able to get a free TV licence if you are 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.
You should also assess whether you actually need a TV Licence.
You may not need one if you do not watch live TV on any channel or streaming service and do not use BBC iPlayer.
If this is the case then let the TV Licensing company know.
Car tax – save £195
It will become more expensive to drive your car from next month.
On April 1 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 fuel it takes.
From next month electric vehicles will no longer be exempt from vehicle tax.
Electric vehicles that are registered after April will pay the lowest rate of car tax, which is £10 in the first year.
After that they will move to the standard rate, which will also apply to electric vehicles that were registered for the first time after April 2017.
You may not need to pay car tax if you receive certain disability benefits such as the higher rate mobility component of Disability Living Allowance.
To be eligible the vehicle must be registered in the disabled person’s name or their nominated driver’s name.
Council tax – save £2,279
Millions of households will see their council tax bills rise up to 5% on April 1, adding £108 a year to an average Band D property.
You may be able to knock hundreds of pounds off your council tax bill by applying for a discount.
If you are on a low income or claim certain benefits then you could get a council tax reduction of up to 100%.
On a typical Band D bill this would be worth £2,279 a year.
If you live alone, share a property with a student or someone who is severely mentally impaired then you could get a 25% discount.
Contact your council to apply.
Mobile phone – save £141
Telecom giants including BT, EE, O2, Three, Vodafone and Tesco Mobile will all hike the bills of millions of customers from April.
The exact amount your bills will increase depends on your provider.
For example, EE and BT will push up the cost of their Sim-only contracts by £18 a year from April.
Meanwhile O2 is increasing the amount it charges by £21.60 a year.
At Three Mobile the price hike depends on the cost of your contract.
If your contract has ended then you may be able to save money by switching to a new deal.
Swapping from a 24-month handset deal to a SIM only contract could save you £351 a year, according to Uswitch.
Use a comparison website such as Go Compare or Compare The Market to find the best one.
Broadband – save £120
Broadband deals will also rise on April 1.
Under new rules from the regulator Ofcom anyone who signs up for a broadband deal from January 17, 2025, will be given a fixed annual price increase.
Before this the amount your contract increases each year was tied to inflation.
Most broadband providers will increase their fixed rates by £36 a year.
But Virgin Media is pushing up its prices by £42 a year.
If you took out your deal before January 17 then the exact amount your bill will increase depends on your provider.
For example, Virgin Media and Onstream will hike their bills by 7.5%.
On a £20 a month contract, this would be an increase of £18 a year.
Meanwhile, BT, EE, Plusnet, Vodafone and Three are all pushing up their prices by 6.4%.
On a £20 a month deal, this would be an increase of £15.36 a year.
One way to save money is to downgrade to a cheaper package – you could save around £120 per year.
Use a comparison website to find the best deal.
Stamps – save £5
The cost to post a letter is set to rise next month.
The price of a first-class stamp will increase by 5p to £1.70 on April 7.
Meanwhile, the price of a second-class stamp will rise by 2p to 87p.
Stock up on stamps now to avoid the price hike and save £5 on 100 first-class stamps.
Check your tax code – save £3,389
Check your tax code before the new financial year begins on April 6.
This code is used by your employer or pension provider to work out how much Income Tax to take from your pay or pension.
You may get a new code if your income changes, you start a new job or get taxable benefits.
You can find your code on your payslip, using the HMRC app or on the HMRC website.
Use the tax code checker on the GOV.UK website to find out what your code means and how much tax you will pay.
Check to see if you are due a refund, millions are and you could be missing out on £3,389 if you were overcharged when withdrawing from your pension.
What energy bill help is available?
There's a number of different ways to get help paying your energy bills if you're struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have schemes available to customers struggling to cover their bills.
But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill.
Some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.