Households all across the UK will see their bills rise sharply from April on the backdrop of soaring energy bills.
On Monday Ofgem announced it was lowering the price cap to £3,280 from the current £4,279 - a reduction of almost £1,000.
While this may appear like good news households will actually see their energy bills rise by an average £500 a year. This is because at the same time the government's Energy Price Guarantee is rising by 20% to £3,000 for a tpyical household.
And when the upcoming end of the £400 energy rebate scheme is factored in, the energy cost for households will increase even more.
However energy bill are not the only thing rising from April. Here's a breakdown of all the price increases you should keep your eye out for in the spring...
Mobile, TV and broadband
Under current rules, telecom companies can raise their prices in line with inflation plus around 4 per cent. The rate of CPI for December or RPI for January are generally used to factor this change.
For December, the CPI rate stood at 10.5 per cent with some companies going with this increase plus 3.9 per cent - equating to a 14.4 per cent increase. Meanwhile, the RPI for January stood at 13.4 per cent, paving the way for rises as high as 17.3 per cent with additional increases factored in.
Energy bills
While the Energy Price Guarantee introduced by the government will be increased from £2,500 to £3,000 from April 1, energy bills could increase by more. On February 27, Ofgem confirmed that the price Cap will drop from £4,279 a year to £3,280 for the average household.
However, customers will pay roughly 20 per cent more on their bills (£500) due to the EPG becoming less generous from April. Citizens Advice chief executive Dame Clare Moriarty said the increase will “spell catastrophe” for millions of households without further support from the Government.
She said: “Unless the Government changes course on planned reductions to the level of support for households under the Energy Price Guarantee, we estimate the number of people unable to afford their bills will double from one in 10 to one in five.
“The Government must keep the EPG at its current level of £2,500. Recent drops in wholesale prices mean they have the headroom to do this. The alternative is millions more people unable to keep their house warm and keep the lights on.”
Council Tax
The majority of council tax payments will increase by 5 per cent in April, but this may vary depending on where you live. It comes after a change in rules will allow councils to raise their tax prices by up to 5 per cent without a referendum.
It is believed that at least 84 out of 114 local authorities in England will raise their taxes by the maximum amount.
Water bills
Water bills are expected to see their biggest increase in 20 years with annual bills for average households in England and Wales going all the way to £448 - an increase of 7.5 per cent. However, depending on who your provider is will determine by how much your bills will rise by.
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