8 major money changes hitting bank accounts from today | Personal Finance | Finance
UK households will be hit with a swathe of major money changes from today as new energy, water and Council Tax rates kick in, among others.
Energy bills will increase by 6.4% from April 1 for households on standard variable tariffs in England, Wales and Scotland as Ofgem’s new price cap takes effect. It means the average annual bill will go up from £1,738 to £1,849 – a rise of £111 on average per year. Water bills will also be more expensive from today, rising by 26% on average which represents an increase of around £123 per year.
Broadband and mobile phone bills will also be pricer from today, with the majority of customers who took out a broadband or mobile phone contract on or before April 10, 2024 facing an increase of 6.4%.
The pricier bills come alongside increases to the National Living Wage, which will give millions of workers a pay boost, followed by uplifts to inflation-linked benefits and the State Pension from April 6.
Listed are the eight major money changes taking effect from today, April 1.
National Living Wage – April 1
The National Living Wage is rising by 6.7% from April 1. The pay boost is worth £1,400 per year for an eligible full-time worker, while those aged over 21 will see their hourly rates rise from £11.44 to £12.21.
The National Minimum Wage for 18 to 20-year-olds is also increasing by £1.40 from £8.60 to £10.00 per hour – a record increase which means full-time younger workers eligible for the rate will see their pay boosted by £2,500 per year.
The minimum hourly wage for an apprentice is also rising from April 1, with an 18-year-old apprentice seeing their minimum hourly pay go up by 18.0% – a pay bump from £6.40 to £7.55 per hour.
Energy bills – April 1
Annual energy bills for households on a standard variable tariff in England, Wales and Scotland are rising by £111 on average from April 1 as Ofgem increases its price cap from £1,738 per year to £1,849. The rise marks a 6.4% hike in energy costs and affects around 22 million homes.
The unit price of gas is increasing from 6.34p per kilowatt-hour (kWh) to 6.99p per kWh while electricity is going up from 24.86p/kWh to 27.03p/kWh.
The price cap sets the maximum rate per unit and standing charge that customers can be charged by suppliers for their energy use – not the total bill, so if you use more energy you will ultimately pay more.
Water bills – April 1
Water bills are going up by £123 on average (a 26% hike) from April 1 for households in England and Wales to help fund upgrades in the water sector, with smaller percentages to follow in each of the next four years.
Regulator Ofwat says further price rises are planned over the next five years, allowing water firms to increase average bills by £31 per year, or £157 in total, to £597 by 2030.
Some regions will face higher rises than others, with Southern Water hiking bills by 47%, whereas Anglican Water and Northumbrian Water are only rising by 19%.
Broadband and mobile phones – April 1
The majority of customers who took out a broadband or mobile phone contract on or before April 10, 2024 will face an increase of 6.4% from April 1, based on the inflation rate last December and an additional charge.
Some customers will see rises in line with inflation, while others may face fixed hikes depending on when they signed up or upgraded.
For those on inflation-linked contracts, broadband prices are going up by £21.99 annually on average, but some newer plans will see increases of up to £42 a year, according to Uswitch.
Mobile users face an average increase of £15.90 for inflation-linked contracts and up to £48 for newer deals.
Council Tax – April 1
Council tax bill rises will hit 5% from April 1 for the third consecutive year as almost all councils increase bills up to, or close to, the maximum permitted.
The average annual band D bill (the standard measure of council tax) will be £2,280 including all precepts this year, marking an increase of £109 compared to last year.
A total of 293 out of 384 lower and upper tier councils subject to referendum principles (which allow them to raise the levy by 4.99% without triggering a local referendum) have opted to hit the threshold, while 56 chose to go close to the maximum. It means 91% of councils felt it necessary to impose significant increases.
TV Licence – April 1
The cost of a TV licence is increasing by £5 from April 1, rising from £169.50 per year to £174.50. For a black and white TV the price has gone up by £1.50, rising from £57 to £58.50.
You can claim a free TV licence if you’re aged 75 or older and claim Pension Credit or you live with someone who receives the benefit.
If you live in a residential care home, supported housing or sheltered accommodation, then you may be entitled to a reduced fee TV Licence. Additionally, if you are blind (severely sight impaired) and can provide the appropriate evidence, you can apply for a 50% discount on your TV Licence.
If none of these apply then you’ll have to pay for a TV Licence at the full rate.
Car Tax – April 1
The standard rate of tax for cars registered after April 2017 is rising to £195 from April 1 – a price hike of £5.
Some owners may pay more, or less, if their car was first registered before 2017, with the rate dependent on when a car was first registered and the type of fuel it consumes.
Owners of electric vehicles (EVs) are also now subject to car tax for the first time. Any EVs registered since April 2025 must pay the lowest tax rate of £10 in the first year before moving to the standard rate of £195.
Stamp duty – April 1
Stamp duty will be more expensive for some homebuyers from April 1 as the “nil rate” band for first-time buyers drops from £425,000 down to £300,000, while other buyers will see a reduction from £250,000 down to £125,000.
Stamp duty is a tax paid on the purchase of a property in England and Northern Ireland and is paid as a percentage of the property price. So any transactions that complete after April 1 are now subject to the increased rates, resulting in thousands of pounds of extra costs for homebuyers.
