Pensioners have to pay £219 Extra: Households will face more financial pressures over the coming weeks

From April 2024, millions of UK households will face significant increases in their regular expenses, including energy bills, council tax, water, and broadband costs. These price hikes will add financial pressure on families already struggling with the cost of living.

How Much Will Household Bills Increase?

The biggest increases will come from energy bills and council tax, but other expenses will also rise. Here’s a breakdown of the expected cost hikes:

• Energy Bills: Typical gas and electricity charges will increase by £111 per year (around £10 per month) due to the latest Energy Price Cap set by Ofgem.
• Council Tax: The average household will pay £108 more per year in council tax.
• Total Increase (Energy + Council Tax): Households will pay around £219 extra per year just for these two bills.
• Other Costs: Increases are also expected in water bills, broadband, and other essential services.

Why Are Bills Increasing?

The main reasons behind these price hikes include:

• Energy Price Cap Adjustment: Ofgem has revised the Energy Price Cap for April-June 2024, leading to higher energy bills.
• Local Authority Funding Needs: Councils are increasing tax rates to cover essential services like social care, waste management, and public transport.
• Inflation and Economic Factors: Rising costs in various industries, including utilities and telecommunications, are pushing prices up.

State Pension and Benefits to Increase in April

While household bills are rising, state pensions and benefits will also see an increase from April 2024 to help ease the financial strain.

• State Pension Increase:
  • The pension rises every year under the triple lock system, which guarantees an increase based on the highest of:
    • Inflation
    • Wage growth
    • 2.5% minimum increase
  • In April 2024, the state pension will rise by 4.1%, matching the latest wage growth figures.
• Benefit Increases: Other government benefits will also be adjusted in line with inflation.

How to Manage the Rising Costs

With household expenses increasing, financial experts suggest the following steps to reduce the impact of these hikes:

• Consider Fixing Energy Tariffs: Money-saving expert Martin Lewis recommends that households fix their energy rates before April to lock in lower prices.
• Check for Discounts & Support Schemes: Many councils offer council tax reduction schemes for low-income households, pensioners, and people with disabilities.
• Reduce Energy Consumption: Simple steps like switching off unused appliances, improving home insulation, and using energy-efficient lighting can help lower bills.
• Review Your Budget: With multiple bills increasing, reviewing your household budget can help you prioritize essential expenses and find areas to cut costs.

From April 2024, millions of UK households will see higher energy and council tax bills, adding to financial challenges. With an estimated £219 annual increase in these two expenses alone, families will need to plan their finances carefully. However, state pensions and benefits will also rise, offering some relief. Experts advise households to take action now, such as fixing energy rates and checking for discounts, to help manage these rising costs.

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