All the bills rising in April including energy costs and broadband prices – and what you need to do right now

MILLIONS of households will have to pay more for essentials such as food and bills as the cost of living continues to rise this year.

Lots of the hikes will be introduced at the beginning of the new financial year in April and it helps to be prepared so they don’t come as a shock.

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Gas and electricity bills will go up from April as that’s when the energy price cap increase will be introduced.

Mobile phone and broadband costs will also rise for many families across the UK.

A hike to inflation rates last week will have an impact on mortgage rates.

And train fares are also set to increase.

Meanwhile, tax bills will shoot up in 2022 as national insurance and council tax rates will rise.

However, the living wage and some benefits will rise in April too and could slightly soften the impact of other increases.

The living wage, which is paid to those age 23 and over, will rise from £8.91 to £9.50 an hour from April.

It helps to be aware of all the changes that are coming and how much they will cost you, so you can take steps to budget and protect your finances.

Council tax

Council tax is going up in April – and it could be by as much as £500.

There’s no way to avoid the increase, but it pays to be aware of upcoming changes so you’re not caught out.

You should check what council tax bracket your home falls under by entering your postcode on the government website.

Then you need to find out how much your local authority area charges, as it differs across the country.

Residents can find out which local council area they live in by searching on the gov.uk website.

Energy bills

Energy bills have soared in recent months and they’re set to continue rising in 2022.

Rocketing wholesale gas prices prompted energy firms to remove their cheapest fixed deals from the market.

That means families were moved onto the energy price cap – which was increased by a record £693 last week.

This means that those on default tariffs paying by direct debit will pay an average of £1,971 per year from 1 April.

Prepayment customers will see an increase of £708 from £1,309 to £2,017. 

The price cap is expected to go up again in October.

Last week, chancellor Rishi Sunak announced that all energy customers will get a £200 discount on their energy bill this year to tackle the rising costs.

But people will have to pay the money back in £40 instalments over the next five years.

There are also government schemes that can help you pay your energy bills – so check out whether you’re eligible for extra support.

You could get money if temperatures drop to freezing in your area with cold weather payments or if you’re already on certain benefits.

If not, you can reduce the amount of gas and electricity you need with some simple tips.

For example, by turning your thermostat down just one degree you could save £100.

National insurance

You can’t avoid your national insurance tax increasing this year, but you should be aware of the incoming change.

Take a look at your pay packet and work out how much the increase will impact you.

For example, a worker earning £25,000 will see their contributions increase by £193 a year.

You can check out how it will affect your salary here.

If you’re ready for the increase, you’ll be able to set a new budget, rather than being surprised by the tax increase after April 2022.

Train fares

Train fares are set to go up this year, which could add extra costs to your commute or holiday travel.

The price of train travel will jump 3.8% in March – the biggest increase in a decade.

It will mainly impact commuters who can’t walk or drive to work.

If you buy a ticket everyday, check whether a season ticket might work out better for you financially.

But if you’re working from home at least one day a week, you could actually reclaim some tax back.

In fact, as you can back date your claim by up to three years, you could get as much as £500 off your tax bill.

Mobile and broadband bills

Many UK mobile networks and broadband providers are preparing to hike their prices from April.

EE, Vodafone and BT pay monthly customers will see their bills rise by 9.3% later this year.

A Sun investigation found that EE – which is owned by BT – is increasing prices by as much as £73.68 a year.

O2 is yet to announce how much payments will increase by, but that will be revealed later this month.

You can’t get out of these mid-contract hikes as they’re in the agreement you signed.

Check your contract to find out how much you currently pay. Your provider will get in touch to tell you how much it will increase by.

Mortgage rates

The Bank of England voted through a rise in interest rates to 0.5% last week, the second rise in as many months.

That could have a knock on impact on your mortgage payments.

You won’t pay more if you’re on a fixed rate mortgage deal, as you’ve agreed your rate for a certain period of time.

But after your deal ends, you could find rates are higher than when you last fixed because of the latest hike.

For homeowners with a tracker mortgage linked to the base rate, your repayments will rise, but when this happens will depend on your lender’s terms and conditions.

Some mortgage lenders have said they will increase standard variable rates (SVR) and others are “reviewing” theirs after the Bank of England’s decision.

Homeowners have been warned they should check their mortgage deal sooner rather than later to make sure they are getting the best deal, as the Bank is expected to hike rates further this year.

This post first appeared on thesun.co.uk