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Energy bills, housing tax, broadband and everything due to price increases from April 1 |  Economic news

Households and businesses are all now facing increased costs for a number of items and services.

Those who need help can contact organizations they may owe money to – they could help by reducing payments or giving people more time to pay.

Organizations such as Citizens Advice Bureau also offer helpful advice for people struggling with their bills.


Both the national minimum wage and the national living wage are increasing. What is the difference? The national minimum wage is a legal requirement – employers must pay you at least this amount. The National Living Wage is higher and workers get it if they are over 23.

The living wage rises from 92 pence an hour to £10.42 an hour for workers aged 23 and over and the Resolution Foundation says it will be the biggest annual cash increase in 24 years of salary history.

Around 1.7million workers earning up to 5p above the previous minimum wage will be the most likely to notice the difference in their wages. Another five million low-paid workers will also benefit, as employers seek to maintain gaps between pay brackets.

The new prices are:

  • National living wage rises 92p to £10.42
  • The rate for 21 and 22 year olds increases by £1 to £10.18 per hour
  • Rate for 18-20 year olds rises by 66p to £7.49
  • 16-17 year olds will get a 47p raise to £5.28, as will apprentices

The Trades Union Congress, however, says the increase in the minimum wage is not enough to keep up with inflation, which has been around 10% in recent months.

But an increase in the minimum wage isn’t good news for everyone – companies need to find more money to pay their workers and, as we’ll see later, they already have to worry about price increases. quite important.

Learn more:
UK house prices suffer biggest annual fall since 2009
The gender pay gap is narrowing – but women still paid 89p for every pound a man earns

Corporation tax

Corporation tax today rises by six percentage points to 25% for companies with profits over £250,000.

Chancellor Jeremy Hunt insisted it would only affect 10% of businesses.

Tina McKenzie, policy chair at the Federation of Small Businesses (FSB), said: “This week sees the end of significant energy support for most small businesses, alongside rising employment costs and the increase in corporate tax.

“The combined pressures facing businesses right now will have a huge impact on the ability of small businesses to weather the storm and leave them with some very tough choices.

“It’s crucial that we maintain a strong small business economy so that there are jobs, competition and a strong supply for consumers.”

Alex Veitch, policy director for the British Chambers of Commerce (BCC), said: “Changes to corporation tax, water bills and the minimum wage are all additional costs businesses knew were coming. But when they add up to energy bills, they make it difficult to start the new financial year.

“Companies knew before the budget that corporate taxes would go up, and the incentive tax super-deduction was fine, but its replacement doesn’t seem as generous.

“The most recent BCC investment survey found that only a fifth of companies were increasing their investments and a similar number were reducing them.

“The government is unlikely to see the economic growth it desperately needs when so many businesses are still struggling to keep their heads above water.”

Energy bills

Businesses will see their energy bills rise massively as the government’s energy bill relief program ends today.

The BCC said nearly half of businesses will now struggle to pay their bills.

Mr Veitch said the organization had suggested seven ways the government could help businesses through this difficult time, but “none have been implemented”.

These included alleviating the burden of VAT on energy bills and financing improvements in the energy efficiency of businesses.

Households also face the prospect of paying more for their energy supply.

Most will have received £400 from the government in the form of cuts on energy bills at the end of last year, or around £67 a month. Well, your last installment was in March – it’s over now.

There is some ongoing support for the most vulnerable, but support will no longer be given to everyone, regardless of the circumstances.

The government energy price guarantee, introduced at the end of last year as a sort of de facto price cap, will remain at £2,500 for the typical household.

But as most of us have lost government support of £400, we will indeed be paying more.

Standing charges – the daily rate you pay to have a power supply (regardless of how much you use) – are also increasing starting today.

Broadband, mobile and water bills

The average household water bill is rising by £31 a year to £448 – a 7.5% increase – for customers in England and Wales.

Mobile and broadband prices are expected to increase by 14-17%. Citizens Advice said it could add an average of £90 a year to household bills. It’s especially frustrating because many telecom providers routinely raise bills anyway – even if you’re in the middle of a contract.

Matthew Upton, director of policy at Citizens Advice, said: “We’ve called on these businesses to support their customers during this particularly difficult time, but they haven’t listened. Instead, they are continuing these price hikes at mid-contract.

“Ofcom should hold these companies to account, but it has kicked the road with a review that won’t happen until the end of the year.

“When the regulator acts, they must settle this once and for all by prohibiting any future mid-contract price increases.”

Listen and subscribe to the Ian King Business podcast here.

Housing tax

Most local authorities are increasing council tax by 5% from April.

This means a Group D home can expect to pay around £100 extra a year, with the average bill topping £2,000 for the first time, according to government figures released last week.

personal tax

This one’s a little sneaky because the personal tax rate hasn’t actually gone up, but you’re still likely to end up paying more. Let me explain.

The government announced in November that personal tax thresholds – the point at which a worker starts paying tax or starts paying tax at a higher rate – will be frozen in England, Wales and Northern Ireland until 2028.

Incomes generally rise – especially when workers have to deal with high inflation and other living costs. But if the tax thresholds stay the same, more workers are pushed into the next tax bracket. It’s what economists call the tax drag and it’s what newspapers often call a stealth tax.

The Institute of Fiscal Studies says freezing income tax and National Insurance benefits and thresholds will cost most base rate taxpayers an additional £500 and most top rate taxpayers an additional £1,000 £.

The Resolution Foundation says the size of the UK’s six-year ‘stealth tax’ threshold freeze has nearly tripled to £25bn, from the £9bn forecast when it was originally announced in the 2021 budget, then extended.

Nothing else?

You mean it’s not enough?

Prescription charges are rising in England by 30 pence from today, bringing the charge per item to £9.65.

We already know that the price of food continues to rise, and train fares increased earlier this year. Mortgage rates have increased – great if you’re sitting on a fixed rate, but potentially very painful if you’re about to remortgage.

And tenants aren’t safe either – if a landlord has to pay more to own the house, you can bet they’ll likely get at least some of it back from the occupants.

Average unleaded, super unleaded and diesel prices are expected to decline, however. That’s right – fall! You may remember those crazy days in July when a liter of unleaded averaged 191.43p – finally on 15th March it was 147.28p.

And according to RAC Fuel Watch, prices will drop further. Well, at least that’s one thing.

So what can you do if you are in trouble?

The most important thing is not to ignore the bills. They will not improve or disappear.

Contact your council and see if you qualify for help from them.

If you’re in debt or just looking for help, contact an organization like CAB or a debt counseling service like StepChange. This advice should be free.

Sky news

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