A shower of money woes predicted for awful April

EVERYDAY life is set to get even more expensive this month as “awful April” strikes and a host of bills shoot upwards, in some cases at a faster rate than wider inflation. April’s annual price hikes are always a blow but this year will be more awful than ever, adding an eyewatering £700 a year to average household spending.

Council tax, water, broadband, mobile, energy and prescriptions are just some of those which increased yesterday. If that was not bad enough, the Chancellor’s tax hikes will come into force on Thursday.

While you cannot do much about some of these, it is worth checking to see where savings can be made.

WORST WEEKEND

This weekend has been dubbed

“April the Worst”, as bill increases coincide with rising inflation and an 18.2 per cent increase in food prices, said cost-of-living champion Greg Marsh, founder of household finances app Nous.

Borrowers on variable-rate mortgages or who are searching for a new deal will also suffer, after the Bank of England raised borrowing to a 14-year high of 4.25 per cent.

Price hikes could push millions of families who are just about managing over the edge – and not just the poorest. Marsh said: “Even families with two incomes and above average earnings may struggle to get by.”

The following bill hikes will mean a typical family will be £682 a year worse off, Marsh calculates.

Council tax is rising by an average of 5.1 per cent, increasing the typical Band D charge in England from £1,966 to £2,064 a year, a rise of £98.

Adults living alone should make sure they claim their 25 per cent discount, while those on low incomes should see if they qualify for Council Tax

Reduction.

BUNDLE SAVER

Mobile and broadband users face price hikes of up to 17.3 per cent in April, adding £76 to the typical broadband contract and £66 for a mobile, or £142 in total.

Ofcom figures show one in three were already struggling to pay in October and now it will get even tougher, said Myron Jobson, senior personal finance analyst at Interactive Investor: “If you’ve been with your provider a while and your introductory offer has expired, shop around to see if you can get a better deal.”

Buying a combined broadband, mobile and digital TV “bundle” could save money, so check on comparison sites such as Uswitch.com.those on low incomes may qualify for low-cost social tariffs. Ee,virgin andvodafone offer connectivity from £12 a month, with no set-up fees or mid-contract price increases.

NHS prescriptions rise 30p to

£9.65 per item, an increase of 3.21 per cent, costing the average household an extra £10.70 over the year. Those who need regular prescriptions should consider buying an annual prescription prepayment certificate (PPC), although this also costs more, up £3.50 to £111.60.

Many, including children and the over-60s, get free prescriptions.

RISING WATER

Households face the biggest jump in water bills for almost 20 years, a rise of 7.5 per cent.this will add £31 to the average bill in England andwales taking it to £448, according to industry bodywater UK.

You cannot switch water companies but low users might consider getting a meter installed. “That way you pay for the water you use instead of a set price,” Jobson said.

If struggling to pay, ask your water company what help it can offer.

The Energy Bills Support Scheme, which handed every household £67 a month for six months, ended on Friday, leaving the typical household £402 a year worse off. “That won’t be easy for those who’ve already cut budgets to the bone,” Jobson said.

There is better news here though, as the Energy Price Guarantee runs for a further three months.this caps the typical household energy bill at £2,500 a year. Turning down the thermostat, switching to energy-efficient bulbs, turning appliances off standby, draught proofing and washing laundry at a lower temperature may help, Jobson said. “At least warmer weather is on the way and energy bills are forecast to fall below £2,000 a year

‘Even those families with two incomes and earnings above the average may still struggle’

by the summer.”

If you are struggling to pay, first contact your energy supplier for support. “It is obliged to find a solution, such as a payment plan that considers how much you can afford to pay,” he added.

CLAIMING BENEFITS

Around eight million claiming means-tested benefits such as Universal Credit, Pension Credit and tax credits will qualify for the £900 Cost of Living Payment, which will go direct to their bank accounts in three separate payments.there is a further disability payment of £150 due this summer, and a £300 pensioner payment over the winter.

Vulnerable households could also secure a grant through the Government’s Household Support Fund. If you need further help, talk to a debt advice charity such as Stepchange or Turn2us.

Britons face a perfect storm of rising costs but things may ease if inflation falls as predicted and at least the state pension rises by a record 10.1 per cent this month. Fingers crossed next April will be less awful.