rises
April is a month of financial strain for many, as essential bills such as council tax, water bills, mobile costs, and food prices all rise. The biggest cash increase in the 24-year history of the minimum wage also comes into effect, with nearly two million people now receiving £10.42 an hour – a 92p rise.
Those on the lowest incomes have been hit the hardest by the soaring cost of living, as a greater proportion of their money is eaten up by vital household costs. Catherine Griffin, a mother-of-five from Middleton, near Rochdale, is struggling to deal with council tax arrears despite her partner working full-time.
The government has allowed local authorities in England to increase council tax by up to 5%, and most have opted for the biggest possible rise – an average of about £100 a year for the average band D property. Different systems operate in Wales and Scotland, while the alternative domestic rating system in Northern Ireland will see households pay at least 6% more.
The winter discount for nearly all billpayers has now come to an end, with no sign of the government repeating the support. This saw a total of £400 taken off energy bills by suppliers, in six instalments of about £67 a month. In some areas, standing charges are going up, which will increase some bills.
The next round of cost-of-living payments, worth hundreds of pounds for eight million people on low incomes and receiving benefits, will be paid automatically towards the end of the month. The cost of most mobile and broadband contracts can go up by the Consumer Prices Index (CPI) or Retail Prices Index (RPI) measures of inflation plus nearly 4%, adding 17.3% to the price of some services.
Water bills have gone up by an average of 7.5% – or £31 – a year in England and Wales, while vehicle excise duty is rising by 10.1% for car, van and motorcycle drivers. An NHS prescription now costs £9.65, up by 3.2%, and postage stamps become more expensive on Monday.
The increase in minimum wages varies by the age of the employee, with those aged over 23 receiving £10.42 an hour – a 9.7% rise. A 10.1% increase in most benefits and the state pension will take effect from 10 April.
The rising cost of living is leaving many struggling to make ends meet, with research suggesting people have already eaten into the majority of what they had managed to set aside during the pandemic. Those out of contract are free to shop around to cut the cost, while social tariffs are available for those on low incomes. April is a difficult month financially for many, but the higher minimum wage should help those on the lowest incomes to cope with their bills.