Switch and haggle your way to beat rising costs

HOUSEHOLDS face a triple whammy of costly bill hikes on April 1, as annual increases to our council tax, broadband and water services all come into force on that day. These inflation-busting rises could add up to £200 a year and are a stark reminder of the importance of staying on top of your bills and taking action to avoid paying over the odds, said comparison site Finance.co.uk’s chief executive, Edward Newman: “Tomorrow’s triple-whammy price hike will come as a nasty surprise, but don’t take it lying down.there is plenty you can do to beat the hikes.”

COUNCIL TAX

Most councils in England andwales are upping council tax bills by at least 5 per cent, with some rising by 10 per cent. How much more you will pay depends on your local authority but a 5 per cent increase would lift tax for the average Band D property by £103 a year to a hefty £2,168.Those with bigger properties could pay much more than that.

People on low incomes or claiming benefits should check if they are eligible for means-tested Council Tax Reduction.

Struggling pensioners should see whether they are eligible for the Guarantee Credit element of means-tested, state pension top-up Pension Credit. If so, they might get their council tax paid in full.

Pensioners who are disabled and receive Attendance Allowance to help with personal care, may also be eligible for Council Tax reduction.

Newman said some might want to go a step further and challenge their council tax band. “Only do this if you are confident it will lower your bills, as your council could reassess your home and may end up putting you in a more expensive band instead,” he warned.

BROADBAND

A broadband connection is now an essential utility for most of us, which is a problem because suppliers are driving through big price hikes.virgin Media and O2 are hiking prices by 8.8 per cent from tomorrow, while BT andvodafone will charge

7.9 per cent more and Talktalk by

7.7 per cent. Sky and NOW are increasing many of their broadband, phone and TV packages by 6.7 per cent on average.

This is the second major annual hike which combined have added £70 a year to the cost of a basic broadband deal charging £25 a month, Broadband Genie figures show.

A high-speed package that originally cost £50 a month now costs an extra £140 a year.

Broadband contracts typically run for 18 months or two years so check how long yours has left.

If you are one of the seven million households whose contract has now ended, you can switch to a cheaper deal without penalty.

Users will face an early termination penalty if they switch mid contract but Go.compare’s broadband spokesperson Catherine Hiley, said: “It may still be worthwhile to pay this and switch to a better deal.”

Alternatively, consider haggling with your existing provider, she added. “Our study found broadband and TV packages were the most popular bills to barter, with almost six in 10 keen to strike a deal.”

More than three quarters of pensioners do not realise they could get cheaper broadband through social tariffs, according to research from Broadband Genie.

Those who receive Pension Credit, Attendance Allowance or the Personal Independence Payment may be eligible for discounts.

WATER

As if that wasn’t enough, water bills are going up by an average of 6.2 per cent, costing the typical household around £28 extra a year.

Newman said installing a water meter could save money, particularly for lower users, as you only pay for what you use rather than a fixed amount. “If you have more bedrooms than people, a meter could you save you money.” If you are already on a meter, using less will shrink bills.

Cutting shower time, using a bowl in the kitchen sink, turning off the tap while cleaning teeth and waiting until your washing machine or dishwasher is full before using all help.

Water companies should offer a social tariff for low-income householders, which could knock up to 90 per cent off bills.

‘Broadband and TV packages were the most popular bills to barter, with six in 10 keen to strike a deal’

ENERGY

If the latest bout of inflation-busting price hikes leave you feeling like an April fool, there is at least one piece of good news onapril 1.That is when Ofgem’s new energy price cap kicks in, saving the average dual-fuel household £238 a year on gas and electricity bills.the annual bill is still a pricey £1,690, though.

Laura Suter, director of personal finance at AJ Bell, said energy bills are still way above where they were three years ago, when the price cap stood at £1,138. “While £20 a month isn’t a huge drop it will absorb some of the increases elsewhere.”

It is possible to switch supplier again but the savings may be limited as standing charges have increased despite the fall in the price cap, she added. “Even before you have used a unit of electricity or gas, you will have to pay £334 a year just to be connected.”

There is only so much you can do to cut bills, but it’s important to use every money-saving option out there.