All the bills going up today (and what you can do about it)
From today, millions of households will see their bills rise steeply as companies take it in turn to hit consumers with price rises all on the same day.
It’s not just your council tax which is rising – it’ll cost more to have a shower, drive your car, watch TV, and even using the internet or calling a friend will get more expensive.
It’s more important than ever to look at your household finances and understand where you can make savings and avoid the most substantial increases.
Here, Telegraph Money assesses all of the bills going up in April – and how you can cut your costs.
Council tax
Council tax will rise by 5pc for most people from April 1 in England, and could be as high as 21pc in parts of Wales. The SNP had promised to freeze council tax in Scotland until 2025 but one council has already rebelled and voted for a 10pc increase – clearing the path for others to potentially follow.
In England, councils with social care functions can increase council tax by a maximum of 5pc every year without triggering a local referendum. However, the Government can grant permission for councils to go beyond 5pc if they “need additional income”. This often happens where councils in effect declare bankruptcy.
For example, last year Thurrock Council was allowed to put bills up by 10pc. The Government has already granted permission for the struggling council to put council tax up 8pc from April 1 and there will be a 10pc rise in Birmingham and Woking, in Surrey, as well.
This means an annual increase of £190 for Birmingham households with a band D property. In the highest band, Band H, council tax will rise by £381 for Birmingham residents to £4,192.59
How to cut your council tax bill
There are two methods for saving on your council tax bill. The first is more straightforward and often applies to people without them realising. If you live alone or only with children under 18 you are entitled to a single person discount which takes 25pc off your council tax bill. Student-only households do not have to pay at all.
Equally, if a person has an illness such as dementia or Parkinson’s, or lives with somebody who does, they could receive a substantial discount. The person must be medically certified as being “severely mentally impaired” (SMI) by a GP as a diagnosis of the illness won’t be enough by itself to qualify for the discount.
If a person who has been certified as SMI lives alone, they don’t have to pay any council tax. If they live with an adult carer, they are entitled to a 50pc discount. If they live with another adult who is not a carer and would otherwise pay council tax, the household qualifies for a 25pc discount.
There are also savings to be had for empty properties, properties which have been adapted for disabled occupants and foster carers. It is important to note individual councils offer different discounts and it is always worth checking with your local council.
The second method for cutting your bill is to challenge your local authority if you believe you are in the wrong tax band. This is a more complex process but can result in savings – or have the opposite effect.
Tax bands are based on your property’s valuation in 1991 and if it was wrongly overvalued, you could be entitled to a saving. It is worth noting that the opposite is also true and you could end up paying more for your council tax, and this could also be applied to your neighbours who won’t thank you for intervening.
The first thing to do is to compare your tax band with what the rest of your street is paying which can easily be done online by entering your postcode into the Government’s website. If you live in a similar property to your neighbours and are in a higher band, this is a good sign you might qualify for a claim.
The next step is to see what your property was worth in 1991. You can do this if you have an estimate for your property value today or the most recent sale for a similar property on your street.
Using the Nationwide house price index, you can estimate the value of your property in 1991. If this figure places you in a lower tax band, and you are currently in a higher band then the majority of your neighbours, you have a strong claim to put towards your local council. Details of how to challenge your council can be found on here.
Water bills
Water bills will rise by 6pc in England and Wales to fund a “record investment” of £14.4bn which water companies promise will “significantly reduce the amount of sewage in rivers and seas” and provide “world class” drinking water.
David Henderson, chief executive of Water UK, the water companies lobby group, said: “Next year will see record levels of investment from water companies to secure the security of our water supply in the future and significantly reduce the amount of sewage in rivers and seas.
“Up and down the country customers will see the results of this investment with more than 2,000 kilometres of pipes being repaired or replaced and more capacity to treat sewage than ever before.”
This will add £28 to the typical annual bill from £445 to £473, although the precise amount will vary on where you live and therefore who your water provider is. Scottish Water has confirmed an 8.8pc rise from the beginning of April.
The publicly-owned company defended the rise by claiming it was needed to fund “significant investment”.
How to cut your water bill
Four out of 10 households don’t have a water meter. This means what they are billed has absolutely no relation to how much water they are using. These homes are billed on the property’s rateable value which is set by the Government and based on its location and size.
So, if you and your partner live in a large four-bedroom house and you don’t have a water meter, you could easily be overpaying because your water provider may assume four people live in the property. Water meters, however, allow you to pay for exactly what you’ve used.
Now that doesn’t necessarily mean it will save everyone money. If your usage spikes, this will also be reflected in a higher bill. However, if you have an idea of how much water you use every week, the Consumer Council for Water has a useful calculator to show how much you could save and therefore whether it’s a good idea or not to install.
Broadband and mobile
Most broadband deals and mobile phone contracts will rise by 7.9pc come April 1, even if you are midway through your contract. That’s because the vast majority of providers have mid-contract price rises written into the terms and conditions of the contract you sign.
For the majority of large providers, these are tied to the Consumer Price Index, a measure of inflation which monitors the change in price of more than 700 goods and services, published in January.
Providers then add their own price rise, most commonly 3.9 percentage points. This means in a normal year your broadband is likely to go up by between 4-5pc, but because inflation is still stubbornly high it’ll be closer to 8pc this year.
For example, if you are a BT customer currently paying £30 a month for your home broadband the bill will rise to £32.37 from April meaning an annual increase of £28.44 annually.
But while BT, Plusnet, EE, Vodafone and Three are all hitting customers with a 7.9pc increase, Virgin Media and O2 customers are facing even higher taxes.
These are the only two large providers who tie their prices to the Retail Price Index, another measure of inflation, which is usually higher than the CPI. The RPI rate was 4.9pc in January and these companies equally add a 3.9pc rise of their own meaning Virgin Media and O2 customers will be hit with an 8.8pc rise.
That means if you currently pay £15 per month for your O2 SIM only contract, your deal will rise to £16.32 monthly, meaning an annual increase of £15.84.
Virgin Media and 02 merged in 2021.
How to cut broadband and mobile bills
Richard Neudegg, of comparison site Uswitch, said: “While around 11 million broadband users and 36 million mobile users are affected by mid-contract price rises each year, Virgin Media and O2 are two of the few providers to base their price rises on the RPI as opposed to the CPI. This means their 2024 price hikes could be among the highest of all UK broadband and mobile suppliers.
“Most Virgin Media customers will be hit by this increase, following updates to their contracts in 2023. O2 customers who joined after 25th March 2021 will also face the RPI increase of 4.9pc, plus 3.9pc on top. This will affect Pay Monthly tariffs, SIM only tariffs, standard tariffs, mobile broadband tariffs and smartwatch tariffs from April
“If you’re out of contract or coming to the end of your existing mobile or broadband deal, changing providers to a lower cost option could help you offset the April price increases.
“There are also several providers which do not raise prices mid-contract, such as Hyperoptic and Trooli for broadband, and SMARTY and Lebara for mobiles. So it’s well worth looking elsewhere if you want to avoid unpredictable hikes.”
Virgin Media O2 has previously claimed analysis from consumer group Which? proved it offered “excellent value” and in response to its price increases said it was “investing heavily to ensure we continue to provide the fast and reliable connectivity our customers rely on”.
TV
Similar to its broadband and mobile contracts, EE is increasing the cost of its subscription television service by 7.9pc. EE TV, previously known as BT TV, allows customers to access free-to-air channels as well as premium channels such as TNT Sports, previously BT Sport. Virgin Media’s 8.8pc increase is also extended to its subscription television service.
Sky will increase prices by an average of 6.7pc for television customers from April 1. It does not track its rises to inflation but does stipulate in the terms and conditions it has the right to change prices during your contract.
Separately, the annual cost of a TV Licence will rise to £169.50 from April 1, up from £159. You’ll need to pay this fee if you watch or record live TV shows on any channel, regardless of the device you watch it on. This includes watching anything in BBC iPlayer.
How to cut TV costs
Saving money on your television deal is not immediately straightforward. While Sky broadband customers can leave their contract for free with 30 days notice, the policy does not apply for its television service.
That means, just as with BT and Virgin, if you wanted to switch television providers or break free from your subscription television contract altogether, you would have to pay a cancellation fee.
All three providers now offer a very similar product with built-in access to streaming services, an array of premium channels and live sports so one obvious cost-cutting measure is to properly assess how much of the service you are using and taking advantage of.
Competition between the providers means you have great flexibility in terms of what you want in your package. Do you need Disney+? Are you making full use of Sky Sports? How often do you use Now TV over Netflix? These are the questions you need to ask if you want to reduce your spending.
As for saving money on your TV Licence, there are a number of discounts and exemptions available to those over a certain age and on lower incomes. Our guide to TV Licence loopholes explains who is eligible for a cheaper service.
Road tax
The Government announced at the Autumn Statement that vehicle excise duty, more commonly known as road tax, will rise in line with the RPI from April 1.
For cars registered after April 1 2017, it means the tax is likely to rise from its current level of £180 per year to approximately £190 per year. However, older vehicles or vehicles which emit higher levels of carbon dioxide do pay more.
HMRC said: “Increasing vehicle excise duty rates by RPI in tax year 2024-25 will ensure that VED receipts are maintained in real terms and that motorists make a fair contribution to the public finances.”
How to cut road tax
Road tax aims to encourage motorists to drive lower emission vehicles. Motorists pay an initial first year rate which can be as high as £2,500 for the most polluting vehicle before being moved to a standard rate from the second year onwards.
All petrol and diesel cars registered after April 1 2017 pay the same flat standard rate. However, for cars registered after 2001, the amount varies considerably based on how much carbon dioxide the car emits.
Electric vehicle owners have not had to pay road tax but from April next year, that is set to change with electric vehicles paying for the first time.
Electric vehicles registered on or after April 1 2025, will only have to pay the lowest first-year rate, currently £10, but will then be moved to the standard rate from the second year onwards. Chancellor Jeremy Hunt said this was to make the system “fairer”, however it does mean from next year all cars, electric or otherwise, will be liable to pay.
Cars with a “list price” of £40,000 or more, pay an extra £390 a year for five years from the second time the car is taxed.
Soon the only vehicles exempt from road tax will be cars which are at least 40 years old. The Government considers these to be historic cars and they don’t pay road tax.
Although there is nothing that can be done to avoid paying the new hike in road tax coming this April if you don’t have an electric car, motorists who have low emitting cars registered after 2017 are in a strong position to shield themselves from the worst of the tax by paying the lowest standard rate.
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