The Rising Costs Facing UK Households

Millions of households across the UK are preparing for significant bill increases in what has been dubbed “Awful April.” Rising costs in council tax, energy, water, and other essential expenses are expected to put further pressure on household finances.

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While some measures, such as an increase in the minimum wage and state pension, will offer some relief, the overall impact on budgets remains a major concern. Understanding these changes and taking proactive steps can help mitigate their effects. If you’re looking for financial guidance on managing these costs, now might be the right time to find a financial adviser near me to assess your options. Book a meeting with an adviser today.

Council Tax Increases

Most households in England will see a council tax rise of up to 4.99%, with the average Band D property now paying £2,280 annually. In Scotland, increases start at 8%, while Wales faces rises of 4.5% to 9.5%. Northern Ireland, which operates a domestic rates system, will also see hikes of up to 5.9%.

What Can You Do?

• Check if you qualify for a discount (between 25% and 100% off in some cases).
• Request to spread payments over 12 months instead of 10 to ease cash flow.

Energy Bills on the Rise

From 1 April, households on variable tariffs linked to the energy price cap will see their annual energy bills increase by £111 to an average of £1,849. This follows rising market prices and adjustments made by Ofgem, the energy regulator.

What Can You Do?

• Submit a meter reading before the price hike to avoid being overcharged.
• Consider switching to a fixed tariff for cost predictability, though this comes with risks if energy prices drop.

Water Bills Soar

Water bills in England and Wales will rise by an average of £10 per month, though increases vary by provider. For instance, Thames Water customers will see a 31% rise, while Yorkshire Water bills will increase by 28%.

What Can You Do?

• Reduce water consumption to lower costs.
• If you live in a home with more bedrooms than occupants, switching to a water meter might save you money.
• Look into social tariffs or council tax reductions that could lower your water bill.

Vehicle and Road Tax Adjustments

Petrol and diesel car owners will pay an additional £5 per year in vehicle tax, with rates varying based on emissions. Electric vehicles (EVs) will no longer be tax-exempt, and high-value EVs could face charges of up to £620 per year from the second year onwards.

What Can You Do?

• Check if your car qualifies for exemptions (e.g., historic vehicles over 40 years old, disability vehicles).
• Consider switching to a lower-emission vehicle to reduce your tax burden.

Additional Cost Increases

• Stamp Prices: First-class stamps will increase to £1.70, while second-class stamps will rise to 87p from 7 April.
• TV Licence: The annual TV licence fee will increase by £5 to £174.50.
• Broadband & Mobile Costs: Mid-contract price hikes are expected, adding up to £74m per month in additional charges.

Some Positive News

• National Minimum Wage: Those aged 21+ will see an increase to £12.21 per hour.
• State Pension: The state pension will rise by 4.1%, benefiting millions of retirees.
• Benefits: Universal credit, child benefit, and carer’s allowance will see small increases.

How a Financial Adviser Can Help

If you are feeling the strain of rising costs, an independent adviser can provide tailored financial strategies to help you manage your budget, reduce unnecessary spending, and plan for the future. A certified adviser can also help you assess investment options, pension strategies, and financial protection plans to safeguard your finances.

If you’re looking to find a financial adviser near me, consider working with a top-rated financial professional who can guide you through these economic challenges. Book a meeting with an adviser today to discuss how you can navigate these changes effectively.

By planning ahead and seeking expert advice, you can take control of your finances and ensure that your budget remains sustainable despite rising costs. Get in touch with an independent adviser for professional financial service and guidance tailored to your needs.

Founded in 2017, Fintuity has fast become one of the only digital Independent Financial Advisers (IFA) in the United Kingdom.  Fintuity offers a wide range of financial advisory services including pensions, protection, investments and mortgage advice. The key difference is that as an exclusively digital service, we can offer significant savings and a service that is direct to you and on demand.