April is the cruellest month – when an entire series of rate increases start, making life harder and costly for everybody. Fortunately, there are things you can do to keep your expenses down, so you stand a much better possibility of remaining on top of your financial resources.
This might have been a lot even worse. We were at first set for our expenses to increase by a 5th in April, however the walking has actually been cancelled, and the energy rate guarantee will stick at £2,500 till June. From that point, we’re anticipating the energy rate cap to drop to £2,100 – so our expenses will lastly fall back a little. However, there’s still some problem to get to grips with, since after March we’ll lose the £67-a -month refund that the federal government has actually been moneying over the winter season – so we’ll all be even worse off.
At the minute there’s absolutely nothing to be saved by looking around; the only response is to cut energy usage anywhere we can. Unfortunately, 57% of individuals are already attempting to utilize less energy at home, and still half people are discovering it hard to pay our energy expenses. If you can’t see any method of utilizing less, you might have the ability to get some help. It’s worth examining whether you get approved for a non-repayable grant from your provider or for the Household Support plan in England run by your regional council.
Read more: Childcare, pensions, tax, advantages — the essential takeaways from budget plan
2. Council tax
Councils have the flexibility to raise tax by 3% – plus another 2% for social care – without holding a referendum. The Treasury anticipates around 95% of them to do so. It suggests band D council tax might increase from approximately £1,966 to as much as £2,064. We’re going to feel this a lot more acutely since we aren’t getting a £150 Council Tax refund this year either.
If you live alone, you can get the bachelor discount rate of 25%. There are likewise discount rates for those with conditions like Alzheimer’s, some full-time carers for individuals with impairments on particular advantages, and individuals on pensions credit. The discount rate will depend upon who resides in your home, so it’s worth examining what you might get on the federal government website Apply for a Council Tax discount – GOV.UK (www.gov.uk).
You may likewise be paying excessive since you’re in the incorrect council tax band. When these were set, many residential or commercial properties were valued at the exact same time that some errors were made. If it ends up that they valued your property too extremely, you might cut your expenses and get a refund. However, difficulties don’t constantly work, and in the worst case, they can suggest your evaluation is raised, so you wind up paying more. It suggests you require to do your research study initially.
Read more: Tax hikes: Why it is time to rethink the way you save and invest
3. Water bills
Water bills will rise by an average of £31 in England and Wales and £19 in Scotland. If you’re trying to cut costs, it’s worth considering a water meter. As a rough rule of thumb, a normal user with more bedrooms than people in the house – or the same number – could be better off with a meter – so they only pay for the water they use. It also gives you the opportunity to cut your water use and save money.
4. Mobile and broadband
Mid-contract hikes are on the way for the customers of a number of broadband and mobile companies. When you signed up, the small print would have said if the company reserves the right to hike the price mid-contract, and by how much. Most of those that do, link to inflation plus a few extra percent. It suggests you could be facing a rise of anything up to 17%. If you have finished the minimum contract period, it pays to shop around for the best possible deal – and check the small print for these potential hikes in future.
Read more: Don’t miss you chance to boost your state pension
5. Prescription charges
These are going up by 30p to £9.65. The price of medicines can really add up, so if you regularly get more than three prescriptions a month, you’re better off with a pre-payment certificate. These last for three months or a year, and once you’ve paid for them, all your prescriptions are included. The price of these is also rising. The three-month pre-payment certificate will go up by £1 to £31.25 and the 12-month one will rise £3.50 to £11.60. However, it’s still a cheaper option.
Read more: How to enjoy a tax-free income
6. Stamps
From 3 April, first class stamps will rise 15p to £1.10 and second class stamps will be up 7p to 75p. It’s no wonder so many people are considering whether they really require to send anything through the post. But if you do, you might want to get some 1st and 2nd class stamps in before the price increase.
7. Tax on investments
The dividend tax allowance (the amount you can get before you pay tax) falls in April from £2,000 to £1,000 – and will halve again the following April. This will hit anyone earning dividends on investments held outside of tax wrappers and anyone who owns their own company and pays themselves in dividends. Investors face capital gains tax misery too. This is paid on any profits you make on investments. The annual allowance is slashed from £12,300 to £6,000 in April – before being halved to £3,000 the following April. You can protect yourself from both by holding investments in an ISA.
Read more: How to avoid an inheritance tax bill
It’s no wonder they’re calling this another ‘Awful April’, but it’s worth knowing that in among all the misery there is a spot of good news. Those who rely on pensions or benefits to make ends meet will get a rise of 10.1%, while those on the National Living Wage will see it increase 9.7% to £10.42 an hour. Of course, you’ll need every penny to cover rising expenses, but at least there’s something positive to cling onto.
Watch: How to save money on a low earnings
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