April marks a significant period for financial matters each year. It signals the conclusion of the tax year, leading to the resetting of personal allowances like ISAs and pension contribution limits. However, with this comes the less favorable news of increased bills across various sectors affecting households. Here are the key updates to be aware of:
Starting in April, minimum wage rates are set to increase for millions of workers. Individuals aged 21 and above will see their minimum hourly wage rise from £12.21 to £12.71, while those aged 18 to 20 will experience an increase from £10 to £10.85 per hour. For individuals under 18 or apprentices, the minimum wage will rise from £7.55 to £8 per hour.
Council tax bills are also on the rise in April, with most local authorities in England opting for the maximum 5% increase. Any larger increments require a referendum, although some councils have been granted permission for higher hikes. The average band D council tax bill in England for the upcoming financial year is estimated to be £2,392.
From April, the TV licence fee will escalate from £174.50 to £180. A TV licence is mandatory for watching live TV or content on the BBC iPlayer, while non-live streaming services do not necessitate a TV licence if only non-live shows are viewed.
Water bills in England and Wales are set to climb by an average of £33 annually, representing a 5.4% increase from April. Regulators have allowed water companies to raise bills by 36% over the next five years, up to 2030.
Vehicle owners registered after April 2017 will face a hike in the standard road tax rate from £195 to £200. Pre-April 2017 registrations will also see varying increases, including a rise in the first-year “showroom” tax.
Most mobile and broadband providers are planning bill hikes ranging from £1 to £4 per month starting in April, translating to an annual increase of up to £48. Regulations now require clear disclosure of any price adjustments during a contract period.
NHS dental charges in England will rise by 1.7% from April, affecting routine check-ups and services covered under different care bands. Additionally, Air Passenger Duty on flights is set to increase by 15% from April 1, impacting economy short-haul, medium-haul, and long-haul flight costs.
The Ofgem energy price cap is decreasing from £1,758 to £1,641 for typical dual fuel households from April, but a substantial rise is anticipated in the following months. Other changes in April include updates to tax allowances, welfare payments, stamp prices, and regulations on allowances for home office expenses.
