Full list of bill hikes coming this year including council tax and energy bills – how to avoid paying more | The Sun

MILLIONS of households will be hit by a number of bill hikes coming this year – but you may be able to avoid some.

Energy bills, train fares and council tax bills are all set to increase, putting further strain on households budgets.

But there are government schemes you can access, or ways of finding out exactly how much your bills are set to rise by.

You can also keep your energy costs down by trying a few simple tricks or testing out some handy gadgets that can help you cut your usage.

We explain everything you need to know about bills that are set to rise this year – and tops to avoid a heavy impact on your finances.

Council Tax

Many local councils are planning to increase council tax payments this year to balance their budgets.

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The government has confirmed that it will allow local authorities to increase council tax above the cap of 2.99% without a referendum.

Every year, councils decide how much to increase council tax bills by.

Confirmation of rises are usually shared at the beginning of the new financial year in April.

More than a dozen councils have already laid out their proposed hikes.

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In some areas, Council Tax bills could increase by as much as £103.

You should check what council tax bracket your home falls under by entering your postcode on the government website.

Then you need to find out how much your local authority area charges, as it differs across the country.

Residents can find out which local council area they live in by searching on the gov.uk website.

What can I do about it?

People on low incomes or benefits such as Universal Credit may be able to get a discount on their council tax.

This can vary between councils, but you could be exempt from paying any council tax at all.

The schemes are means-tested, and will usually depend on your income and any children or adults living with you.

Single adults living in a property can get a 25% discount on their bill.

This is for people of all incomes and applies if they are the only adult living in the property.

The discount also applies if they live with a young person aged under 18, or someone aged 18 or 19 in full-time education.

A reduction could also be applied if there is a disabled person living in the property.

This is known as a disabled person’s reduction and each council has its own criteria.

You may also get 50% off your council tax if you live with someone who is severely mentally impaired.

You might also be able to reduce the amount of council tax you pay by challenging your band.

Properties across the UK are put into a band from A to H, and this informs how much council tax you pay.

It's worth checking yours to see if you could get a discount, but you could find your property is moved up up a band and your bill could increase.

Train fares

Rail fares usually rise each year based on the annual increase in the retail price index (RPI) measured the previous July.

But the government recently confirmed that rail fares won't rise by July's RPI value of 12.3% in March.

It's not as much as it could have been, but it's still the biggest hike in more than a decade.

What can I do about it?

Regular passengers may be able to cut the cost of standard anytime, off-peak, advance and first-class advance tickets by up to a third with a railcard.

You can buy these through National Rail but you'll need to pay a fee.

That said, if you regularly travel by train, you'll make up this cost in no time.

Cards for those aged 16-25 cost £30 a year, or £70 for a three-year card.

Don’t pay over the odds for tickets and remember to compare prices before you buy.

Ticket firms usually start selling fares around 12 weeks in advance.

This is when Network Rail releases its timetable.

The earlier you book, the less you'll pay for your seat so get organised if you know you're going to be travelling over the next few months.

First, check the National Rail website, which is a great way to get an overview of routes and travel times.

Then check the train operating companies' website or Trainline to see if cheaper fares are available.

But sites like Trainline will usually charge you to make a booking — between 25p and £1.50 — so factor that into your savings.

Mobile and broadband hikes

BT, EE and Three are among the firms to confirm they will put up bills by up to 14.4%.

Price rises will come into effect for millions of customers from the end of March.

This means that if you pay your bill on the 15th of every month, for example, you'll pay the new prices from April 15.

The rise will affect customers even if they are signed up to a contract with a fixed price.

That's because firms have mid-contract price rises written into the terms and conditions,

Many broadband and mobile providers base their annual price increase on the rate of inflation plus an extra 3.9%.

The current rate of inflation is 10.%, so bills will rise by 14.4%.

The exact amount more you pay will depend on how much your bill is now, but for some could add more than £100 a year to bills.

What can I do about it?

Switching contracts when yours is up is the single best way to save money on your telecom bills.

In the weeks before your contract is up, use comparison sites to familiarise yourself with what deals are available.

But as these are mid-contract rises, you will need to check if there is a penalty for leaving a deal early.

It's a known fact that new customers always get the best deals.

Sites like MoneySuperMarket and Uswitch all help you customise your search based on price, speed and provider.

This should make it easier to decide whether to renew your contract or move to another provider.

However, if you do not want to switch and are happy with the service you're getting under your current provider – haggle for a better deal.

You can still make significant savings by renewing your contract rather than rolling on to the tariff you're given after your deal.

You could save up to £210 a year on your bills by haggling alone.

If you need to speak to a company on the phone, be sure to catch them at the right time.

Make some time to negotiate with your provider in the morning.

This way, you have a better chance of being the first customer through on the phone, and the rep won't have worked tirelessly through previous calls which may have affected their stress levels.

It pays to be polite when getting through to someone on the phone, as representatives are less inclined to help rude or aggressive customers.

Knowing what other offers are on the market can help you to make a case for yourself to your provider.

If your provider won't haggle, you can always threaten to leave.

Companies don't want to lose customers and may come up with a last-minute offer to keep you.

Last but not least, it's worth investigating social tariffs.

These broadband packages and discounts have been created for people who are receiving certain benefits.

They're often available to those on income support, Universal Credit, or disability allowance.

Around 4.2million households are eligible for these cheaper tariffs but only 55,000 are making use of them.

Prices start from £12.50 a month, so ask your provider what's on offer.

Energy Bills

Energy bills for the typical households were initially set to be frozen at £2,500 for the typical household for two years.

But the Chancellor announced in November last year that it would only be in place of six months.

In the Autumn Statement, Jeremy Hunt said typical bills will rise to £3,000 in April.

This means the average household will see their bills rise by £500 a year.

The exact amount your energy bills will rise by will depend entirely on your own usage – so if you use more than the average household, expect to pay more.

And while there's nothing you can do top stop these costs form rising, there is support in the pipeline for hard-up households.

What can I do about it?

Millions of households started receiving a £400 energy bill discount in October last year.

The payment is dished out by your energy supplier and split across six discounts between October 2022 and March this year.

We've listed how the leading energy suppliers are paying households.

But the way you'll be paid will depend on how you pay for your energy.

Check with your supplier to confirm how you'll receive the cash.

A £900 payment will be going to millions on means-tested benefits and Universal Credit this year.

To be eligible for the payment, households will need to be claiming at least one of the following:

• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance
• Income Support
• Pension Credit
• Tax Credits (Child Tax Credit and Working Tax Credit)
• Housing Benefit
• Council Tax Support
• Social Fund (Sure Start Maternity Grant, Funeral Payment, Cold Weather Payment)
• Universal Credit

Jeremy Hunt confirmed in his Autumn Statement that millions of elderly Brits will receive another one-off £300 'Pensioner Cost of Living Payment' in April.

Anyone claiming the following will also qualify for a further £150 cost of living payment this year:

• Attendance Allowance
• Constant Attendance Allowance
• Disability Living Allowance for adults
• Disability Living Allowance for children
• Personal Independence Payment
• Adult Disability Payment (in Scotland)
• Child Disability Payment (in Scotland)
• Armed Forces Independence Payment
• War Pension Mobility Supplement

There are also plenty of energy grants and schemes open to help you out if you're struggling.

Ask your supplier what's on offer and how to apply.

Mortgage rates

The Bank of England's Monetary Policy Committee (MPC) will meet twice every quarter to decide if interest rates need to rise.

The MPC will make any announcements on the Bank of England's base rate on:

• Thursday, February 2
• Thursday, March 23
• Thursday, May 11
• Thursday, June 22
• Thursday, August 3
• Thursday, September 21
• Thursday, November 2
• Thursday, December 14

If the bank decides to raise interest rates further it will make the cost of borrowing, including loans, credit cards and mortgage repayments more expensive.

And four million mortgage holders are already set to see their monthly payments jump by the end of the 2023 when they move off cheap mortgage deals and are forced to refinance onto a higher rate.

However, savings rates will get a boost as banks continue to battle it out by offering market-leading interest rates.

Historically banks don't rush to up their savings rates in line with the base rate of interest – however, more and more are battling it out on the high street to offer the best rates.

What can I do about it?

If you are due to come off a cheap fixed mortgage deal in the coming months, it's worth preparing to remortgage early.

Lenders typically move households onto a more pricey SVR once your mortgage deal comes to an end.

That means you could have been on one of the best mortgage deals and suddenly your monthly repayments will increase.

But households can start looking for a new mortgage up to six months before their deal ends.

Lots of lenders now let customers lock in a new rate six months in advance.

Others will let you lock in a new rate at least three months ahead.

We've explained how you can find the best mortgage deals.

Savers wishing to boost their nest egg should search around to see if they can get better returns with another bank or building society.

We've previously explained how to find the best savings rates.

Prescription charges

Prescription charges usually rise every April in England and the exact amount they rise by is set by the Department of Health and Social Care.

But in April 2022, prescription costs were frozen for a full 12 months until April 2023.

At present, Brits have to pay £9.35 for a single prescription for their medication.

The government hasn't yet confirmed if prescription charges will rise in England in 2023.

Prescriptions remain free of charge in Northern Ireland, Scotland and Wales.

What can I do about it?

A prescription prepayment certificate (PPC) could save you money if you have 12 or more prescriptions dispensed each year.

The certificate covers all your NHS prescriptions for a set price.

Three-month PPCs cost £30.25.

Twelve-month PPCs cost £108.10 and can be paid for in instalments.

You can buy a PPC on the NHS Business Services Authority website.

Millions of Brits are eligible for free prescriptions, including those over 60, those under 16, and those 16 to 18 in full-time education.

You can also get your prescriptions for free if you're pregnant or have a medication exemption certificate.

You're also entitled to free prescriptions if you or your partner (including civil partner) receive, or you're under the age of 20 and the dependant of someone receiving:

• Income support
• Income-based jobseeker's allowance
• Income-related employment and support allowance
• Pension credit guarantee credit
• Universal Credit

Water bills

Households usually have to fork our for their water supply each April when companies put up bills.

And the average combined water bill rose form £412 a year to £419 in April 2022, according to Water UK.

And in some cases, households had to pay up to £36 a year more.

The exact amount your bill will rise from will depend on where you live, how much you're charged and the rate it's increasing by.

Different areas of the country have a water company assigned to them.

And that company is responsible for setting the costs of bills and the rises for residents.

Unfortunately, you can't simply switch to another one when you're unhappy like you can with other utilities.

Any hikes in water bills will be announced in the new year.

What can I do about it?

Moving to a water meter could help some save some extra cash.

One mum more than halved her water bill after getting a meter – saving over £200 a year.

Obviously, if you do use a lot of water then it makes no sense to have a meter as your bills could go UP.

The Consumer Council for Water offers a free water meter calculator that'll tell you if you can save by fitting a water meter.

For example, if you have a big family and more people than bedrooms or simply use lots of water-intensive appliances like washing machines or dishwashers, a fixed fee will be better for you.

Having a water meter doesn't help with the standard charge that's based on where you live either, but it can help you cut down the costs of your personal usage at home.

Part of that is how long you spend in the shower too.

According to Uswitch you could cut £70 from your energy bills and reduce your water bills too by reducing your wash time.

And leaving the water running while you brush your teeth could add £60 a year to your bills says Octopus.

The same goes for washing dishes, be sure you turn the tap off as if you’re doing it in the sink, leaving it running will add £25 to your annual bill.

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Many water companies offer free water-saving devices that shave pounds off your bills too.

Contact your supplier or check out savewatersavemoney.co.uk.

Do you have a money problem that needs sorting? Get in touch by emailing [email protected]

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