Martin Lewis warns Brits 6 major price hikes are all coming from April 1 | Personal Finance | Finance
April marks the start of a new financial year which means changes announced in the autumn Budget will soon kick in.
While that means some extra cash will start to filter into bank accounts from next month, thanks to upratings to benefits, State Pension and National Minimum Wage, UK households will also be hit by a swathe of price hikes at almost exactly the same time. MoneySavingExpert founder Martin Lewis has warned that six major price increases will kick in from April 1, so it’s worth planning ahead now to check if there are ways you can mitigate the upcoming extra costs.
The Money Saving Expert founder says hikes on water bills, energy bills, stamp prices, stamp duty charges, broadband and mobile phone bills will all go up in price in April, but there are ways you can beat the costs.
In a post on X (formerly Twitter), Lewis warned: “Don’t be an April fool! April doesn’t just shower, it pees down on the nation. On 1 April there are price hikes on water, energy, stamps, stamp duty, broadband & mobiles. Pls share that tomorrow (Tue) 8pm @itvMLshow I’ll talk you through beating the hikes. Plus, the tax year’s ending, urgent, use your ISA or lose it, tax reclaims worth £1,000s and how savings tax works.”
Water bills
Water bills will increase by an “extortionate” £86 on average (a 20% 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 has confirmed that water companies can hike average bills by £31 per year, or £157 in total, over the next five years to £597 by 2030. The increase is to help fund a £104 billion upgrade for the water sector and represents a 36% rise before inflation which will be added on top.
According to Water UK, the national average water bills for the coming year are forecast to be £603, which represents a rise of £123 or 26%, equating to around £10 extra per month.
Lewis says households can potentially save hundreds of pounds by switching to a water meter, as this means you’ll only pay for what you use. He says households should follow his “rule of thumb” that if you have more bedrooms in your home than you do people – or the same number – then you “almost certainly should be using a water meter”.
Energy bills
Annual energy bills for households on a standard variable tariff in England, Wales and Scotland will rise 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 will affect around 22 million homes.
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 those who use more energy will ultimately pay more.
Standing charges, which are fixed daily fees to connect to a gas and electricity supply and vary by region, are also rising again for gas but will drop for electricity, although it depends on where you live.
But it’s possible to beat the April price cap by switching tariffs and fixing at a cheaper rate, with experts urging people to start looking for better deals now to protect against further price increases.
Stamps
Stamp prices will rise again on April 7, marking the sixth price hike by Royal Mail in three years. The cost of a first-class stamp will increase by 5p to £1.70, and second-class stamps will go up by 2p to 87p.
Stamp duty
Stamp duty will become more expensive for some homebuyers from April 1. The current “nil rate” band for first-time buyers is reducing 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 which complete after April 1 will now be subject to the increased rates of stamp duty, resulting in thousands of pounds of extra costs for homebuyers.
Broadband and mobile phones
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% in April, based on the inflation rate last December and an additional charge.
The cost of a TV licence is also increasing by £5 to £174.50, while for black and white TVs costs will go up by £1.50 to £58.50.
