MARTIN Lewis has warned that the cost of living crisis will “hit harder” from April – but there’s action you can take now to soften the impact.
Bills are set to rise from next month including energy, council tax, broadband and mobile.
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Writing in his weekly newsletter, the money saving expert said: “life in the UK will get harder to afford for many.”
Martin said that while some things are out of people’s hands, there are things hard up Brits can do, “and most need doing sooner to work”.
Here’s Martin’s advice for beating April’s big price hikes, which he described as “the worst in my professional memory” since inflation is predicted to hit 8%.
Inflation indicates how much prices are rising on goods and services, ranging from bills and food, to petrol and other travel costs.
Prices overall are generally rising at a higher rate than people’s incomes, leaving them feeling the pinch.
1. Council tax
Council tax bills are going up across the country from April by as much as 5%.
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Chancellor Rishi Sunak announced a £150 council tax rebate to help ease the cost of living crisis.
The cash will be paid out to those living in homes classed in bands A-D for council tax bills.
While this can help to some degree you can’t avoid the bills rise, and Martin advises that it’s worth double-checking you’re not paying more than you need to on top.
If you’re not already getting a council tax discount it’s worth checking if you’re eligible.
Single people are entitled to 25% off their bill, while an adult living with a student can get 50% off.
If you are on a low income or receiving benefits, you could eligible for a reduction on your council tax.
The requirements to get help will vary depending on where you live, so the best first step is to check with your local council.
You can apply for a reduction where you live via the Government website.
You could also challenge your council tax band if you think it’s wrong so you don’t miss out on the cash.
But beware a revaluation of your band could put you in a lower band where you pay MORE council tax, so consider the risks – you can read more in our guide.
2. Broadband and mobile
Many UK mobile networks and broadband providers are preparing to hike their prices from April and some already have, like Virgin Media.
It’s unlikely you can get out of these mid-contract hikes as they’re in the agreement you signed, but check your contract
If you’re out of contract you’re free to move to another provider who is likely to offer a cheaper deal.
According to Martin most people who are out of contract pay around £30 to £45 a month for broadband and line rental, but the best deals are far cheaper.
For example Shell Energy is offering basic broadband and line for as little as £14 or £17, depending on the speed.
If there’s a switching incentive, like Amazon vouchers, make sure to factor this in when comparing costs.
You can use a price comparison site to compare deals available and it’s worth checking a few as not all sites show every deal.
You’ll also want to check you’re signing up to a deal that works for you, for example that it has suitable internet speeds.
You can also haggle with your current provider to try and lower your bill, especially if you are nearing the end of your contract.
They will often want to keep you as a customer, so may offer you a better deal.
Check what deals are available from them and other providers so you know if they are offering the cheapest. If they don’t you can always switch.
You can do this for mobile contracts too, or consider ditching your deal for a sim-only one if you’re happy with your handset, Martin advises.
Provided you’ve already paid off the cost of the handset, you can get deals for as little as £5.50, depending on you call, text and data needs.
Again, price comparison sites can help you compare costs of sim-only deals.
3. Energy bills
The energy price cap will rise from £1,277 to £1,971 on April 1 – an increase of nearly £700.
But this number is for the typical dual fuel bill and the exact amount you pay will depend on your actual use.
There’s very little you can do right now to reduce your bill, as switching to another provider will no longer get you the best deal.
Previously fixed deals offered cheaper prices but not any more due to rocketing wholesale costs.
Some customers are being offered fixed dales that could be worth it and Martin has shared his advice on whether you should fix or not here.
The money saving expert has also shared three tips for prepay energy customers, direct debit billpayers and everyone to ensure they get the council tax energy rebate in April.
You can check out the tips here.
There are, however, still some changes you can make to reduce your energy usage and your bill, like turning the thermostat down or using eco wash settings.
There’s also schemes, support and other help available if you’re worried about your bill.
Some suppliers are offering customers deals that could work out cheaper and Martin Lewis has advised to keep an eye out for these offers.
4. Stamp prices
Royal Mail announced that first class stamps are set to jump in price by 10p to 95p and second class stamps to 68p, a rise of 2p, from April 4.
Martin usually advises that you stock up on stamps ahead of the rise, but warns that a further change to stamps coming next year means you’ll have to swap them if you do.
From January 2023 the post will move to a barcode system and you won’t be able to use the current style of stamps that feature an image of the Queen’s head, with the exception of Christmas and collectable stamps.
There will be a swap scheme in place, though full details have not been announced yet, which could still put limits on how many you can swap.
5. Water bills
Water bills are set to rise by up to £36 a year in another blow to households struggling due to the cost of living crisis.
Exactly how much more you’ll pay depends on where you live and your local water company – you can check yours here.
Unfortunately you can’t switch your water company, but you could save money with a water meter.
You can use Money Saving Expert’s water calculator to see if getting one installed could reduce your bills.
Struggling households could get bills capped through the WaterSure scheme, but will already need to be on a meter.
Social tariffs are also an option for those on Universal Credit and you can find out more about who is eligible for both schemes and how to apply in our guide.
Many water companies offer free water-saving devices that shave pounds off your bills – contact your supplier or check out savewatersavemoney.co.uk.
Freebies include shower timers and buffalo bags, which save water with every flush.
6. National Insurance
You’ll be paying more tax from April as the government is introducing its social care levy.
That means an extra 1.25 percentage points on top of the existing National Insurance rates to help cover the cost of social care.
Rates will rise from 12% on earnings between £184 to £967 a week, to 13.5%.
On earnings above this amount the rate will rise from 2% to 3.25%.
In practice that means on earnings of £10,000, you would pay £5 a year more, and on earnings of £25,000, £193 more.
How much National Insurance you pay relates to how much you earn through work, so unfortunately there’s little you can do to change it.
But, it’s worth checking other ways you can save on tax to beat the rise.
For instance, the marriage allowance is worth £250 to married and civil partnered couples, where one person earns less than the personal allowance.
If you’re married or in a civil partnership, you can transfer your unused personal allowance to the higher earner.
But the higher earner must still be a basic rate taxpayer, meaning they can’t earn more than £50,270 a year.
You can backdate your claim to include any tax year since April 5, 2017.
If you’re eligible, you can apply online as long as your have both of your national insurance number and some ID.
Here’s all the ways you can claim tax back that could be worth thousands – including if you’ve had to work from home because of the pandemic.
7. NHS prescriptions
NHS prescriptions usually rise each year, and we’re still waiting for this year’s announcement, Martin said.
In the meantime, it’s worth checking if you’re exempt or if a prepayment certificate could reduce your costs.
The current prescription charge is £9.35 per item.
There are 15 groups of people who qualify for free prescriptions – you can check them out here.
Meanwhile a prescription payment certificate (PPC) is like a season ticket for medication.
It currently costs £30.25 for three months or £108.10 for one year.
Martin said that around one million people would already be better off this year by getting one of these.
It’s generally worth it if you use more than one prescription a month.
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