Every bill that's going up in April and how to cut costs now before it's too late

UK households are steeling themselves for a £400 annual bill increase starting next month.

A surge in costs across the board, from energy and water to council tax, broadband and mobile prices, is set to hit all at once. This is before other bills, including road tax, also see a significant rise.

In addition, TV subscription and stamp prices are set to climb again, while shop price inflation could escalate if retailers pass on higher costs. However, some relief may come in the form of an increase in the minimum wage and benefits.

The hike in energy, water, and council tax alone next month will add £342 to the average household's expenses, pushing the combined bill for all three to over £4,700 on average for the coming 12 months. Assuming the same household has broadband, two mobile phone contracts and a TV licence, they will need to find an additional £400 annually overall.

However, this comes as debt experts warn of the strain many households are already experiencing. Charity StepChange disclosed that nearly three in ten of those seeking its help have more outgoing in bills each month than incoming, reports the Mirror.

The average deficit is a concerning £532 a month, exacerbating the struggle to stay afloat, and 15% higher than two years ago. This is despite falling inflation and a supposed decrease in the cost of living crisis.

Richard Lane, chief client officer at StepChange, commented: "While headlines suggest the cost-of-living crisis is easing, for many households, the financial pressures that pushed them into difficulty haven't gone away. April's bill increases will only make things tougher. Council tax is set to rise by 5% for most – and even more in some parts of the country.

"Many people will also face increases in their other essentials as the energy price cap rises and water companies increase bills. With housing costs still painfully high, these increases will stretch already strained budgets even further."

He explained: "At StepChange, we see the impact of this every day. The hardest-hit households are seeing their monthly budget deficits grow. More than a quarter of our clients say the cost-of-living crisis is the reason they've fallen into debt."

Meanwhile, Grace Brownfield from the Money Advice Trust, the charity behind National Debtline, said: "There is little let-up in sight for many struggling households. We are already seeing the effect that high prices have had. Energy arrears are now the second most common debt we're helping people with at National Debtline, behind only credit cards, and a third of people we help have council tax debt."

The upcoming month's price hikes will further exacerbate the burden of already high essential bills. Officially, inflation has edged back up to 3%, but many feel the rise in prices is much steeper.

A Bank of England survey revealed that the average person estimated inflation to be closer to 5%, although they anticipated it would decrease over the next year.

Moreover, there seems to be no relief in sight for borrowers next week, as the Bank of England is predicted to maintain its base rate at 4.75%. Mortgage borrowers coming off affordable deals are fervently hoping for a reduction to ease the impact.

In the Bank of England survey, 31% of respondents stated a drop in rates would be beneficial for them, while 26% argued they should actually increase. Those in rental properties continue to face significant hikes, with average private rents rising by 8.7% in the 12 months leading up to January.

Despite the increasing bills, millions of households will also see an uplift in their income from April. The National Living Wage for workers aged 21 and over will rise by 6.7% to £12.21 an hour.

Inflation-linked benefits and tax credits will increase by 1.7%, while the triple lock ensures the state pension will go up by 4.1%. However, a freeze on income tax thresholds will result in more individuals being "dragged" into the tax bracket, or paying at a higher rate.

Some of the price increases expected in April:

Energy bills - up £111

The energy regulator, Ofgem's price cap is set to rise by 6.4% from April 1 - a larger increase than anticipated, pushing the average annual bill up by £111 to £1,849. This change will impact around 22 million customers, including four million on prepayment meters.

The exact amount you'll pay depends on your gas and electricity usage. This is because the price cap doesn't limit the total household bill, but rather sets the maximum that can be charged for unit rates of gas and electricity, as well as standing charges.

While the average annual increase is £111, the cap is reviewed every three months, meaning this figure will fluctuate.

So, what can you do?

There are numerous fixed rate deals available that are cheaper than the price cap. Some offer savings of up to £179 per year compared to the April cap.

It's important to note that it's the unit rates of energy that are fixed, not the overall bill.

Also, bear in mind that Ofgem's cap could potentially decrease later this year. Wholesale gas prices have been falling in recent weeks and could drop further if there's a peace deal in Russia's war on Ukraine.

Water bills - up £123 a year

Unlike energy, households don't have a choice over their water service provider, which is why many will find the surge in bills next month particularly frustrating.

Average bills are set to skyrocket by up to 47%, sparking urgent calls for assistance for customers already under financial strain. Some suppliers will ramp up prices by as much as £224 a year, marking the largest wave of increases since privatisation 36 years ago.

The average household water and sewerage bill in England and Wales is expected to surge by 26%, or £123 a year, to £603. Suppliers maintain that these significant increases are necessary to fund long-overdue investment work to address leaks and sewage discharges.

So, what can you do?

WaterSure is a scheme designed to assist certain individuals with their bills. To qualify, you must be on benefits and require a large amount of water, either due to medical needs or because your household has a specific number of school-age children.

You also need to have a water meter installed or be in the process of getting one.

Council tax - set to rise by approximately £108

Most local authorities in England responsible for delivering social care are anticipated to hike council tax by the maximum 4.99% from next month.

Recent analysis by the PA news agency of 139 councils that have proposed or confirmed increases showed 85% plan to enforce the upper limit. Six councils in severe financial distress will be permitted to raise the tax by more than 5%, including Bradford which can increase it by 10%.

Some cities with mayors can also add a separate levy that covers funding other services.

The average council tax in England saw an increase of £106 to £2,171 annually last April. The government has not yet released the average for this year.

However, as a rough guide, a 4.99% increase would push the average Band D property up by another £108 to £2,279.

What can you do?

If your income is low or you're receiving certain benefits, you may be eligible for help from your local council to pay your council tax bill – this is referred to as Council Tax Reduction or Council Tax Support.

TV licence - up £5 a year

From April 1, the cost of a colour licence will rise from £169.50 to £174.50 per year. A black and white TV licence - for those who have one - will also increase from £57 to £58.50 per year.

You need a TV licence to watch live TV or any shows on BBC iPlayer. If you're caught watching live TV without a TV licence, you could face a fine of up to £1,000.

Blind or severely sight-impaired individuals can still apply for a 50% concession. This means a colour licence will cost £87.25.

There are other concessions and arrangements available, including for people living in certain types of residential care and for over 75s receiving Pension Credit.

What can you do?

The Simple Payment Plan is designed for those experiencing financial difficulty.

Eligible customers can choose between a fortnightly or monthly payment plan to spread the cost of a licence over 12 months.

Broadband and mobile prices - up an average £54 a year

From March 31, many individuals with mobile or home broadband contracts will experience a price hike. Previously, these increases were tied to inflation, leading to significant rises in past years.

Recent changes dictate that new contract signees should be informed in "pounds and pence" about the annual cost increase. However, those on older contracts could still face an above-inflation rise.

BT has announced that customers who entered into a contract before April 10 of last year will see a 6.4% price increase from March 31. According to price comparison website Uswitch, broadband prices will generally increase by an average of £21.99 per year for those on inflation-linked contracts, and £15.90 per year for a typical mobile customer.

This could add nearly £54 a year for a household with broadband and two mobile contracts. Households with TV subscriptions will have to budget even more, as both Sky and Virgin Media are raising their prices.

So, what can you do?

Uswitch reports that over nine million Brits are out of contract on their broadband package and 33 million on their mobile plan. It estimates that switching to a new broadband deal could save a household £181 a year.

Mobile customers can also text 'INFO' to 85075 to find out if they are still in contract and any exit fees associated with leaving early.

Car tax - varies greatly depending on vehicle

From April 1, millions of car drivers will see their car tax rise - in some cases dramatically.

Electric car owners are bracing for a significant shift as, for the first time, they face vehicle excise duty. From April, electric, zero or low emission cars registered will incur a £10 charge in their inaugural year, before skyrocketing to £195 annually for the following five years.

You'll be out of pocket by £195 if your car was registered between April 2017 and now, while those with registrations predating April 2017 but post-March 2001 will pay only £20 yearly.

The financial complexities intensify with new electric vehicles priced above £40,000 drawing a "luxury car tax" or posh motor surcharge of £425 yearly, applicable from the second to the sixth year.

Petrol and diesel vehicle owners aren't exempt from the sting, with imminent hikes also affecting them. Depending on CO2 emissions and manufacture date, vehicles fall into different bands.

Cars emitting 1g to 50g CO2/km will see their first-year rate jump from £10 to £110. Meanwhile, top-end polluters exuding over 255g/km of CO2 will face a soaring fee—from £2,475 to a whopping £5,490—for their debut year, with an ongoing standard rate increase of £5 to £195 thereafter for vehicles registered post-April 2017.

Owners of pre-2017 cars will witness a spike too.

What's the solution here?

If you're considering an electric vehicle, now is the ideal time to make the purchase. Vehicles registered before April 1 will be exempt from the costly car supplement.

To ease the financial burden, a direct debit can be set up with the DVLA online, allowing the cost to be spread over six months.

Stamp prices - increase depends on usage

From April 7, the price of a first-class stamp will rise by another 5p to £1.70, marking the sixth price increase in three years. Second class stamps will cost 87p, a rise of 2p.

Royal Mail attributes these increases to a combination of fewer letters being sent and an increase in the number of households it delivers to, which drives up costs.

What can you do?

If you frequently use stamps, consider stocking up in advance and buying in bulk. As long as the stamp doesn't display the price but only the class, it will remain valid.

Other bill rises.

Stamp duty

Starting next month, home buyers in England and Northern Ireland will begin paying stamp duty on properties valued over £125,000, down from the current threshold of £250,000. First-time buyers currently pay no stamp duty on homes up to £425,000, but this will decrease to £300,000.

Shop prices

Inflation has already started to rise again, sparking fears that it could be driven even higher as businesses pass on an increase in employers' national insurance from April. This change, announced by Chancellor Rachel Reeves in her Autumn Budget, is expected to cost companies around £25billion annually.

Business lobby groups suggest that some firms, including retailers, may pass some of this cost onto consumers through increased prices, although it's too early to determine the exact impact.

Planning application fees are also set to rise, affecting households planning certain home improvements and renovations in England. In some cases, these fees could double.

Scotland is anticipated to implement similar changes later this year. For homeowners submitting a standard application for an extension, the cost will increase from £258 to £528.

This increase is justified as a means to provide local authorities with more resources to expedite the planning process.

Another less noticed change could have a significant financial impact on self-assessment taxpayers, businesses, and others struggling to meet their tax obligations. The interest rate charged on late tax payments, previously 1.5% above the Bank of England's base rate, will jump to 4% above.

Rail fares are also due for adjustment

Next month's fare increases follow hot on the heels of price hikes in March that affected millions of train travellers, including those using rail cards and season tickets across the country. As part of annual price changes, regulated fares in England are set to rise by a whopping 4.6%.

In addition, most rail cards will see their first price increase in 12 years, with some jumping almost 17% from £30 a year to £35. Last month, bus travel in England saw a staggering 50% increase in the fare cap, from £2 to £3.