The National Minimum Wage is set to go up and apply to those over 23 on April 1st, along with an increase in benefits for those who claim
Brits are bracing themselves for a hike in their bills in just a few weeks. However, BBC’s Cost of Living correspondent, Colletta Smith, has shared some advice that could help many billpayers save some cash and even get a 100% reduction on some bills.
She appeared on the latest episode of Morning Live to discuss how changes in energy bills will affect billpayers and what they can do. She pointed out that an average four-person household is set to see a £40 increase per month – or nearly £500 a year – on average with bills.
Some people may face even higher increases depending on their unique circumstances. However, she highlighted that the National Minimum Wage will go up significantly in April alongside an increase in benefits for those claiming which could “take the edge off” for some.
She said: “So much is hitting at once, we’re talking about energy, water, council tax and mobile and broadband. So, the energy price cap is increasing 6.4%, that’s a really big rise, people are really going to notice that one when their direct debits increase as a result or when their next bill hits.”
Should you fix your deal or not?
Due to the dramatic increase in energy bills, some people may be tempted to fix their energy deal in a bid to save money. However, Ms Smith argues that people shouldn’t immediately jump the gun and jump straight into the first fixed deal they see.
She explained: “In most cases, it often seems like a good idea at the moment, but make sure that you’re doing the right comparison. So, compare the rate that your supplier is offering you against that increase from the first of April – so the new higher price. Make sure that comparison is right and of course if you want to know how much you’re paying over the year, then it’s really helpful way to budget that too.”
She went on to say: “For most households, it’s definitely a sensible thing to look into, and you’ve got 12 days to do it before that price increase kicks in so worth doing soon.”
Four-decade-high water bill increases
Highlighting the unprecedented surge in water bills, Ms Smith pointed out: “When you’re looking at the national average, it’s £123 more but some areas are considerably more than that, into the £200 bracket extra each year.”
Council tax of up to 15% in some places
On the topic of council tax, she noted that bills are poised for a significant hike for many across the UK, with increases of 5% or more in certain locales. Bradford residents are facing a 10% rise, while those in Orkney, Scotland, are bracing for a staggering 15% jump.
Ms Smith concluded: “It’s a huge jump for people to have to deal with and have to cope with. If you’re in a band E property at that kind of typical property we’re talking about an increase of around £100 to £150 a year, which is a lot.”
Mobile and broadband changes to help customers
Customers are bracing for a hike in phone and broadband bills, but a new rule could ease the sting. Providers must now show a numbered price increase, not just a percentage, to give customers a clearer picture of how their contracts will change.
While not everyone will be hit by the rises, which depend on contract start dates, Ms Smith advises: “It’s worth looking out forward to see if yours is going to rise from the start of April.”
How to find support for the big bill increases
For those worried about affording the upcoming bill increases, there’s a range of support available, though it may require some legwork. Ms Smith recommends: “When you’re talking about energy bills, contact your supplier. I mean that’s always the first line if you’re struggling with bills contact your supplier and let them know.”
She adds that local councils and charities often have additional funds, especially for those on benefits or low incomes. Energy-saving home improvements are also an option, with experts, sometimes referred to as ‘green doctors’, ready to help make homes more efficient.
“When it comes to water bills, you can make huge savings. Actually some of the best savings are around water companies’ social tariffs. They’re not well advertised but if you’re on certain types of benefits, if you have children under 18 in the house, you can get something called water shore in a lot of areas which can cover up to 100% of your bill.
“If you’re struggling with council tax and you’re on a low income again, you could get a reduction of up to 100% in most areas if you live on your own.”
She also pointed out that some individuals might find better deals on their mobile and broadband tariffs, and strongly encourages checking with suppliers for any available support suiting current circumstances.