Five ways you can beat April’s bill shocks... MARTIN LEWIS
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THIS April, whether we’re in, out or, most likely, just shaken all about, one thing is certain... it’s the time of annual public service price rises. While you can’t prevent the rises, there are ways to cut bills. I want to show how you can steal a March (sorry) on April’s hikes.
YOU’RE LIKELY DUE A BIG HIDDEN PAY RISE, BUT IT’LL COST YOU
EVERY UK worker aged 22 or more, earning £10,000+, is automatically enrolled to pay into a pension.
From April 6, the total that must be contributed increases from 5% to 8% of your salary, and the minimum your employer must contribute rises from 2% to 3%. That means if your employer is only putting in the minimum your contribution will rise from 3% to 5% (so £100 per £5,000 of salary).
As it’s from pre-tax income each £100 you contribute only reduces your take-home pay by £80 as a basic rate taxpayer and £60 at the higher rate.
You can opt-out, but doing so means giving up a pay rise – as it’s giving you money you wouldn’t have otherwise got (even though it’s not immediately usable). For far more help see mse.me/payrisepaycut.
TV LICENCE FEE TO RISE – DO YOU NEED ONE?
THE colour licence increases by £4 to £154.50 from April 1. Renew now if you’ve forgotten at tvlicensing.co.uk.
If you ONLY watch catch-up content on for example the ITV Hub or Netflix, you don’t need one. If someone aged 75+ lives in your home, licences should be free.
COUNCIL TAXES UP AN AVERAGE £75 A YEAR – ARE YOU DUE £1,000S BACK?
THE average council tax rise from April 1 in England is to be 4.5%, equivalent to £75 on a typical band D property. Rises are expected in Wales and Scotland too.
However, up to 400,000 households in England and Scotland are in the wrong band. In 2007, I created the council tax check and challenge system, which lowers your band and you get a backdated refund. Don’t speculatively challenge, or your band could be increased.
Visit mse.me/counciltax which also includes help on discounts.
ENERGY PRICES RISE 10% DUE TO PRICE CAP INCREASE
THE energy price cap on standard tariffs is rising from £1,137 a year for someone with typical usage to £1,254 a year from April 1. As over half the country are on these default tariffs, that means a chunky 10% rise for most.
Cut costs by £300+ by switching. Visit cheapenergyclub.com or any ofgem.gov.uk approved site.
WATER BILLS ARE UP ON AVERAGE BY 2% – A METER CAN SAVE £500
RISES from April 1 vary by region. You can’t switch supplier, yet in England and Wales most can install a water meter for free. If you’ve more or the same number of bedrooms in your home as people, it’s worth checking out. Use the calculator at ccwater.org.uk.
Martin Lewis is the founder and chair of Moneysavingexpert.com. Get his free Money Tips weekly email, go to moneysavingexpert. com/latesttip