It's the 1st April, the fun of April Fools pranks will bring a smile to the faces of many this morning, but April 1st also means many household bills will rise from today in what’s been called “awful April” and the conservatives are calling “Rachel’s Cruel Day” as measures introduced by the Chancellor Rachel Reeves in the budget take effect alongside the start of the new year for annual bills.
The big increases for households from today are council tax, electricity, gas and water along with the TV licence, car tax, and broadband bills all going up.
Water bills for households in Cumbria by United Utilities are up by £112 on average, rising by almost 23%
Gas and electricity bills are increasing as the price cap goes up by £111 a year to £1,849 for an average household.
Council tax is going up by 4.99% for Westmorland and Furness Councils share plus Police and Fire precept increases. An average band D property in Penrith will pay £2425.08
Car tax is increasing for cars registered after April 2017 it’s rising to £195 a year according to the RAC.
Broadband and phone charges as increasing changes depend on provider.
TV licence is also going up to £174.50.
Stamp duty levels are changing and will be paid by house buyers in England on properties over £125,000 instead of the previous threshold level over £250,000
Stealth tax hikes will also hit wages with the freeze on thresholds on income tax and National Insurance. As pay goes up and the tax thresholds remains fixed, you're likely to pay a higher rate in tax on earnings.
Businesses are also facing further pressures as Employers' National Insurance is rising from 13.8% to 15% on workers' earnings. The threshold at which employers start paying the tax is being reduced from £9,100 per salary to £5,000
Business rates are also increasing along with energy costs and businesses also have to pay the increase in the minimum wage to employees.
The minimum wage for over 21s, known as the National Living Wage, has risen by 6.7%, from £11.44 to £12.21 an hour.
For 18 to 20-year-olds, the minimum wage has gone up from £8.60 to £10 an hour.
Apprentices will be paid £7.55 an hour, up from £6.40.
With the cost of goods and materials also increasing due to global situations from the ongoing war in Ukraine to Trump Tariffs, the cost of goods will also see increases hitting households and business in the pocket.
During the 2024 General Election campaign Labour promised to a ‘freeze’ Council Tax and lower energy bills for households. Former Member of Parliament Mark Jenkinson has warned that families in Penrith and Solway are in line for £1,191 of cost increases from 1 April, dubbed ‘Rachel’s Cruel Day’.
Mel Stride, Shadow Chancellor of the Exchequer this morning said: “Today (1st April) hard-working families across the country will see their cost of living rise yet again — and it's all thanks to this Labour government’s choices.”
Business Secretary Jonathan Reynolds speaking on BBC Breakfast this morning
Was asked to explain why bills are going up when Labour promised to deliver the opposite during last year's election campaign.
Reynolds said the government is working hard to make sure bills come down by the end of this Parliament.
In response to a question of when people will feel better off the business secretary responded
“They are getting better off, the government is not only making wages higher, but introducing other measures including free breakfast clubs, freezing fuel duty and triple-lock pensions".
What can you do about it?
Council Tax - Check if you qualify for a council tax discount, you could be entitled to apply for between 25% and 100% off your bill depending on your circumstances.
Council tax is usually billed over 10 months rather than 12, You can ask the council to spread the payment over 12 months instead of 10.
Energy Bills - You can shop around or swap to a fixed tariff, which protects from price rises and unpredictability. However, if energy prices fall later in the year you won’t benefit from those savings as your energy costs will remain fixed.
Water Bill – unfortunately households can not shop around for a water supplier so if your on a water meter, You can see if you can cut back on water consumption to help reduce your water bill.
If you can’t get a water meter households in England or Wales, may be eligible for an assessed charge, which is based on factors such as the number of people in your home. And if you don’t have rainwater discharged from your property To qualify for a discount on your sewerage charges, you will need to prove that the rainwater that falls on your home (including your roof, drive, patio, yard etc.) drains directly into the ground, or a watercourse such as a brook or stream, or a soakaway – without draining into our sewer pipes.
The discount you will receive will depend on whether you have a water meter or your bills are calculated using the rateable value of your home.
For customers with a meter, the discount is around £80 (2024/25 charges).
For Rateable Value households who pay a fixed bill amount the discount is around 27% of the household sewerage charges.
Broadband and Phone - if your contract has come to an end or is about to, it is worth shopping around or haggle with you current provider for a deal or switching providers if they can’t offer a better deal.
Most contracts won’t allow you to cancel without a penalty-free mid-contract, but some providers may have deals to cover termination penalty fees if you switch to them while in contract so it’s worth asking if your looking mid contract.
TV Licence - 90% of households need a TV licence, the BBC claim. The rules apply requiring a tv licence if you watch or record live TV or anything on iPlayer, livestream using ITVX, Sky Go, Amazon Prime, YouTube live, Freely, or watch live events on Netflix.
However, if you’re watching only on demand content, shows or programme that are not live TV you don’t need a TV licence, unless it is on BBC iPlayer.
So if you don’t do any of the above that require a tv licence you could save £174.50 a year.
We would like to hear your thoughts on the increasing household costs and your tips to cut the bills.
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