Billpayers have been urged to plan ahead as several household bills will be increasing next year including one from New Year’s Day.
Energy bills, water bills, council tax and other household costs will increase, with people being encouraged to look at ways to keep down their bills.
January 1 – energy price cap increase
Starting on the first day of the year, the Ofgem price cap will rise from 1.2 percent for the three months from January to March.
This will mean the average household paying for dual fuel by direct debit wil see their bills rise by £21 a year, up to £1,738 a year.
The price cap is set for three-month periods. The price cap for April to June will be announced by February 25.
Andy Kerr, founder of boiler installation group BOXT, said: “Consumers should remember that the Ofgem price cap does not set the maximum a household will pay on their energy bills and need to remain vigilant about their usage to avoid receiving an unexpectedly costly bill.”
People on fixed rate energy tariffs will not be affected as their unit rates will remain the same. BOXT recommends taking measures to increase your home’s energy efficiency, such as bleeding radiators and getting insulation installed.
April 1 – household bills increase
Several household bills will increase from the start of April, shortly before the start of the new tax year on April 6.
Water bills will increase by 20 percent on average from April, with a typical bill increasing £86 a year, although this will vary depending on your region.
Council tax will also be going up from April 1, with many local authorities increasing bills by the maximum 4.99 percent. Recent figures show almost a quarter of council tax is going towards council worker pensions.
Some struggling councils are increasing their rates by more than this, with Birmingham City Council increasing the charge by 10 percent.
TV licence fees will also go up in line with inflation, meaning the cost of a standard colour TV licence will go up £5, increasing from the current £169.50 to £174.50. Those with a black and white TV licence will pay £58.50, up from the current £57.
There may be some relief from April, as experts are Cornwall Insight are predicting the energy price cap will fall by 1.4 percent from April, with average bills falling to £1,713 a year.
A survey by Go.Compare Money found that the top financial concern for people going into the new year is rising bills.
Matt Sanders, money spokesperson at Go.Compare, offered some tips to bring down your bills.
He said: “Take a look at what you are paying for – is there anything you don’t use anymore? Can you shop somewhere cheaper for groceries?
“Are you spending too much on lunch? With so many people worried about what 2025 will have in store for them financially, taking a look at your current outgoings and where you can make some savings is always a good place to start.”
Other price increases
From January 1, the single bus fare cap in England will rise from £2 to £3. The new cap will be in place until the end of 2025.
Rail fares will also increase from March 2, with regulated train fares in England rising 4.6 percent. Most railcards will go up in price by £5, excluding the railcard for disabled passengers.
