From council tax to energy bills, households face steep rises with some expected to lose over £3,500 due to tax adjustments.
Londoners are bracing for substantial bill hikes starting in April, with essential services like energy, water, and council tax set to rise significantly. These increases, set to take effect on what is being referred to as “April Cruel Day,” are expected to add around £400 to the annual household budget.
Across the capital, council tax, water, energy, and broadband bills are all scheduled to go up, with some families seeing their costs spike by hundreds of pounds. The rise in energy bills, for instance, will add £111 to the average household’s annual costs, as Ofgem increases the price cap for the third consecutive quarter. This hike is primarily due to higher wholesale energy prices caused by cold weather and a shortfall in renewable generation.
In addition to the energy price increase, Thames Water customers will face a 31% rise in their bills, translating to an additional £203 annually. Furthermore, millions of households are also seeing their council tax bills increase, with a significant portion of London boroughs seeing charges exceed £2,000 a year.
The Conservative Party has forecast that due to National Insurance increases coming into effect on April 6, working families could lose over £3,500 each over the course of the Parliament. This is on top of the ongoing pressure from rising living costs. Citizens Advice has warned that the impact of these unavoidable costs is already stretching the finances of the lowest-income households, with some spending as much as 41% of their earnings on essential services.
Amid these increases, however, some workers will see the minimum wage rise by nearly 7%, potentially easing the strain for low-income earners. The new National Living Wage will rise to £12.21 an hour for those over 21, offering a potential lifeline to millions.
As the new tax year begins, families already dealing with the prolonged cost of living crisis now face additional challenges. The changes, combined with the broader economic climate, have led to warnings about the affordability of basic necessities, with some experts calling for stronger support measures to protect vulnerable households.
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The first day’s journey was through the pink fields
The first day’s journey was through the pink fields
The first day’s journey was through the pink fields