Household bills set to soar for millions on April 1

Millions of households will see a number of their bills increase dramatically on 1 April 2021 in the wake of the pandemic. 

Council tax, the TV licence and NHS prescriptions are just some of the costs being hiked from April Fools’ Day. 

A number of TV, broadband and mobile providers have also revealed they will be rising their prices, some in line with Retail Price Inflation. 

Unfortunately, the increases come at an unwelcome time after a year of financial uncertainty for much of Britain. 

Rise: Some people will see a number of their bills increase by as much as 13% this April

This is Money takes a look at the bill increases and reveals how much you could see your total costs go up by.  

However, consumers don’t just have to accept all of the price rises and we give tips on how you can cut costs.  

1. Council tax

Bills are increasing by: Up to 5 per cent 

Councils are able to increase tax at the beginning of April with many taking the opportunity to do so.

The Local Government Chronicle said 53 per cent of councils were looking to hike tax by the biggest increase which is 4.99 per cent for upper tier councils and 1.99 per cent or £5, whichever is highest, for districts.

However, 7 per cent were looking to freeze tax completely, including Hartlepool, Basildon and Spelthorne Borough Councils.

The results give the first national snapshot of council tax plans for 2021 to 2022 and are based on a sample of 45 councils, 32 of which were upper tier and 13 of them districts.

The research found upper-tier councils were more likely than districts to be planning a maximum increase, with 59 per cent preparing to increase council tax by 4.99 per cent.

To find out exactly how much your council tax could be increasing by, contact your local authority. 

How to beat it: Households can get a 25 per cent single-person discount if they live alone or with a full-time student or are living with someone with severe mental impairment such as dementia.

You can also appeal to put your property into a different band – if successful, this can lower bills.

However, it can also have the opposite effect. You could end up paying more if they council bumps you up the bands.

Hike: The cost of a TV licence will rise by £1.50 at the beginning of April, in line with inflation

Hike: The cost of a TV licence will rise by £1.50 at the beginning of April, in line with inflation

2. TV licence

Bills are increasing by: £1.50 

The licence fee is compulsory for households who watch live television with income from the licence primarily used to fund the television, radio and online services of the BBC.

In May 2016, the Government announced the licence fee would rise with inflation for the first five years of the Charter period as of 1 April 2017. 

However, the annual TV licence fee for a colour licence is to increase by £1.50, from £157.50 to £159, from 1 April 2021 which is the equivalent of £13.12 per month.

A black and white licence will cost £53.50 – an increase of 50p.  

How to beat it: Households are entitled to a 50 per cent reduction for their TV Licence fee if they are blind.

Care home residents may qualify for a discounted TV Licence fee of £7.50. 

Previously, anyone aged 75 or over was eligible to apply for a free TV Licence, paid for by the BBC, but that has now changed. 

Depending on when you live will depend on whether your water bill will increase or decrease

Depending on when you live will depend on whether your water bill will increase or decrease

3. Water bills

Bills are increasing by: Up to 5 per cent 

Depending on when you live, your water bill could rise by 5 per cent this year – equivalent to £14.

However, in other areas, households could see their bills fall by six per cent.

The average household water and sewerage bills in England and Wales are set to fall by around £2 a year – equivalent to 0.6 per cent – from April. 

This takes the average bill from £410 to £408. 

South East Water and Wessex Water will see the biggest fall of six per cent.

This is a fall of £38, from £464 to £426 for Wessex Water customers and £14, from £229 to £215, for South East Water households. 

The biggest increase is for Hafren Dyfrdwy customers in Wales with a 4.5 per cent hike from £310 to £324 – an additional £14 a year. 

How to beat it: Using water saving techniques, such as installing a water meter, can help you to cut down your water bills. 

Depending on the size of your cistern, you could also save between one and three litres each time you flush the toilet by purchasing a water-saving device. 

Even if you do not have a meter, using water wisely and cutting down on the amount of hot water you use will lower your gas and electricity bills. 

It will also reduce the amount of climate-changing greenhouse gases you release into the atmosphere. 

Whilst some people will see their water bills increase, the average home will see a decrease

Whilst some people will see their water bills increase, the average home will see a decrease

4. NHS prescriptions

Bills are increasing by: 20p an item 

The NHS prescription charge will increase to £9.35 per prescription item from 1 April 2021 in England. It is currently £9.15 meaning customers will see a rise of 20p.

The price of a three-month pre-payment certificate will also rise to £30.25, up from £29.65.

Meanwhile, a 12 month PPC will be £108.10, an increase of £2.20. These certificates offer savings for those needing four or more items in three months or 12 or more items in a year.

How to beat it: Switching to a pre-payment certificate will always work out cheaper if you have a monthly prescription.  

5. TV and broadband bills

Bills are increasing by: Up to 13 per cent 

Sky customers will see their bills increase by up to £6 a month – equivalent to £72 a year.

While the rises are capped at a £6 a month – a hike that will hit 8 per cent of customers – the average increase comes in at around £3 per month, or £36 a year.

Sky Broadband Essential customers will see the biggest increase, with prices going up more than 13 per cent from £22 a month to £25.

BT is also raising its broadband, TV, mobile, landline and sport prices by 4.5 per cent next month.

This is in line with 0.6 per cent inflation plus 3.9 per cent and applies to customers who took out a contract after September 1, 2020.

As of March 31, BT broadband customers can expect to pay between £2 and £3 extra each month, or £70 more over the course of their contract.

Streaming services have also increased their prices recently including Disney+ and Netflix. Read more about the hikes here.  

How to beat it: Customers can use price comparison sites to see if they could save money by switching to another deal with a new provider – if they are outside of their contract. 

Homes can also negotiate with Sky and BT. It is a good idea to see what the firms are offering new customers and asking whether they can match that prices or better.  

Rise: Millions of households will see their TV and broadband bills increase at the start of April

Rise: Millions of households will see their TV and broadband bills increase at the start of April

6.Mobile bills

Bills are increasing by: Up to 4.5 per cent 

Mobile phone customers are set to see their bills increase by as much as 4.5 per cent this spring.

For those who signed up with Three as a pay-monthly customer or renewed their pay-monthly Three contract on or after October 29 last year, they will see their bills increase by 4.5 per cent as of April. 

Three customers who joined the network between May 29 2015 and October 29 last year will see a smaller increase of 1.4 per cent from May.

Stamp prices 

Stamp prices are not set to go up this April. However, this is because they were increased in January of this year.

The price of a First Class stamp rose by 9p to 85p and the price of a Second Class stamp increased by 1p to 66p on 1 January.

Postage for a large First Class letter also saw a hike of 14p to £1.29 whilst a large Second Class letter rose by 8p to 96p.

Meanwhile, customers that took out a new contract with Vodafone before December 9 last year will see their bill rise in line with the Retail Price Index, which will be announced in March, with the price change taking effect in April.

Those who joined or renewed their Vodafone deal after that date will see their bills increase by 4.5 per cent from April. 

EE and BT Mobile said their customers will also see an increase although the average rise is less than £2 a month.

Existing EE and BT Mobile customers who signed up before 1 September 2020 will receive an RPI increase of 1.2 per cent which is for the majority of EE Mobile customers.

For EE and BT Mobile customers who agreed to new terms from 1 September 2020, it will be 0.6 per cent, in line with CPI plus 3.9 per cent on the total cost of their monthly package. 

To find out more about mobile price hikes, click here.  

How to beat it: It is worth negotiating with your provider to see if you can haggle a better deal on your contract.

If not, use price comparison services to see what other deals are currently on the market.

For customers whose contract has run out, it is a good idea to switch to a Sim only contract. Find out more about the best deals on the market here.  

Mobile phone users will see their bills increase by as much as 4.5% as of April 1 this year

Mobile phone users will see their bills increase by as much as 4.5% as of April 1 this year

7. Energy bills

Bills are increasing by: Up to £97 a year 

Millions of households will see their energy bills rise £96 a year following the price cap announcement and the subsequent increases by the big firms.

British Gas was the first supplier to increase bills for default tariff customers by £97 – from £1,041 to £1,138 a year – affecting 2.3million customers.

Eon, Npower, EDF and Scottish Power all followed suit.

They confirmed they are raising their prices by £96 a year, up from £1,042 to £1,138 – an increase of 9 per cent.

The news follows Ofgem’s decision to raise the energy price cap by £96 to £1,138 for the six month period from 1 April.

The cap on prepayment tariffs will also increase by £87 a year from £1,069 to £1,156.

How to beat it: Using price comparison sites can help you find a cheaper tariff, such as a fixed deal, which could help you save hundreds of pounds each month.  

8. Car tax

Bills are increasing by: £155 a year  

Vehicle Excise Duty was not mentioned in the Budget, however, prices are increasing. 

It currently remains at £0 for electric cars and is unchanged for the least polluting vehicles.

However, for petrol and diesel cars, the tax will rise to £155 a year, with the premium tax, that applies to cars costing more than £40,000, increasing to £335 a year for the first five years of ownership.

First year rates are also increasing with cars that produce between 76g per km and 170g per km of carbon dioxide seeing their bills rise by £5.

People with cars in the 171g per km to 190g per km category will see a £25 rise and there is a £30 rise for people with cars producing 191g per km to 225g per km.

An additional £40 will be handed out for 226g per km to 255g per km vehicles and a £70 increase for everything above that.  

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