Council tax, broadband and dental costs: how to weather April’s price rises
UK inflation may have fallen to a two-and-a-half year low of 3.4%, but there are an awful lot of things going up in price on April 1, with some big increases about to come into effect to become.
Council tax bills will rise for millions of households, and a host of other bills – from car tax and stamps to NHS dental costs – will become more expensive.
Here we explain what’s happening – and what you can do about it.
municipal taxes
Official data shows that the average increase for 2024-2025 pushed through by local authorities in England is just over 5%, reportedly the largest increase in cash terms since 2003-04.
The average cost of a typical band D property in England is £2,065. A 5.1% increase adds another £106. Of course, that depends on where you live and the ties to your property. In Nottingham, a band D resident will pay £2,529 a year from April, which equates to £2,171.
In addition, four English councils – Birmingham, Slough, Thurrock and Woking – have been given special permission to make increases of up to 10% this year in light of what the government calls their ‘significant financial failure’. says MoneySavingExpert.com.
Birmingham imposes the biggest increase in cash terms of any council, with Band D bills rising by £163, followed by Slough (£144), Thurrock (£126), Gateshead (£103) and Nottingham (£102) , the Taxpayers’ Alliance say.
In Wales the average band D is increasing is £145, or 7.7%but some households have been affected by significantly more.
In Scotland, Municipal taxes are frozen for 2024-2025 to support those “struggling with rising prices”, with 2.5 million households likely to benefit.
What can you do about it? Check whether you are eligible for a council tax discount or reduction, which can range from 25% to 100%. Those eligible may include full-time students, people on low incomes or benefits, and some who live alone or are single parents.
There are different rules. For example, in England there is a 25% singles discount if you are the only adult in your home. If everyone living in the home is – to use the jargon – “disregarded,” or not counted for tax purposes, you will still be billed, but you will receive a 50% discount. If everyone in your home is a student or has a severe intellectual disability, you do not pay municipal tax.
In the meantime, if your income drops or you find yourself out of work, you may be able to apply for a reduction, which can be up to 100%, although each municipality has its own rules. Citizen Advice has a guide about how it all works.
Finally, consider challenging your council tax scheme. Many households have found that they were paying too much.
Broadband and telephones
Following last year’s ‘mid-contract’ price increases of up to 17%, many broadband customers are facing a further 8% increase around this time, typically increasing many people’s costs by around £30 per year.
Although they vary, BT/EE, Vodafone and Three all pay average bills of 7.9%. At TalkTalk this is 7.7%. And Virgin Media, which merged with O2 in 2021, continues to rise to 8.8%.
It’s a similar story for mobile customers, who typically face an increase of around £20 per year. EE and Tesco Mobile (non-Clubcard) customers face a 7.9% price increase. At O2 Mobile this is 8.8%.
What can you do about it? If your contract expires, switch to a new provider or negotiate a new, cheaper contract with your existing supplier. “If you’re going to stay with your existing provider, look elsewhere for the cheapest deal, then contact them, tell them you’re considering leaving and ask them to match the price,” says Sarah Coles, head of personal finance at the investment platform. Hargreaves Lansdown.
If you’re paying more than around £27 a month for fast (67 Mbps) broadband internet at home, you’re probably paying too much. Meanwhile, mobile customers without a contract will likely want to look for a cheaper SIM-only plan.
Vehicle excise duty
The annual tax costs for your car or van will increase with inflation from April 1. For most drivers of new and older cars, the annual cost of VED, or car tax as it is more commonly known, will increase by between £5 and £20. Buyers of new vehicles with the highest emissions are expected to pay £140 more in the first year, from April. If your existing car was first registered on or after April 1, 2017, your annual car tax will increase by €10 to €190.
For cars first registered after March 2001 and before April 2017, your bill will depend on CO2 emissions2 emissions. A typical petrol family car emits 172 grams of CO2/km pays £305 per year – £15 more than last year. The cost for a smaller band D car will rise from £150 per year to £160.
What can you do about it? For some, this could mean buying a smaller model that qualifies for a lower VED – these will usually be pre-2017 models. Or you can go car-free – obviously not something that is accessible to everyone, but a step that can yield huge savings.
TV license
From April 1, the standard color TV license will cost an extra £10.50 – a hefty £169.50. If you’re one of the around 4,000 households still watching black and white TV, your license will increase by £3.50 to £57.
If you’re wondering if you need a permit, the answer is probably yes. When you watch live TV on Sky, BBC or over the internet, or whatever on BBC iPlayer, you need one. If you only watch on-demand services such as Netflix, Disney+ and Amazon Prime, you don’t do that.
What can you do about it? Check whether you or a loved one is entitled to a free or reduced license. Previously, all over-75s could get one for free, but this was scrapped in 2020. Now you can can only get one if you (as a permit holder) are over 75 and you or your partner who lives at the same address receives a pension discount. You may be entitled to a reduced rate license if you live in a residential area residential care center, assisted living or sheltered housing.
Stamps
Prices of first class stamps will rise by an inflation-breaking 8% for standard size letters from Tuesday 2 April. First class increases from £1.25 to £1.35, second class by a further 13% – from 75p to 85p.
What can you do about it? Some people are stockpiling stamps to cope with the price increases, so do that now before the increase takes effect.
NHS dental costs
From April 1, costs in England will rise by 4%, increasing the cost of a ‘band 1’ treatment, such as a check-up, from £25.80 to £26.80. A band 2 filling increases from €70.70 to €73.50, and band 3 treatments, such as crowns and dentures, from €306.80 to €319.10.
What can you do about it? Check if you need to pay. You may be entitled to free care. The The NHS website indicates who is eligible. For example, you do not have to pay if you are younger than 18 years old, or younger than 19 years old and in full-time education; if you are pregnant or have had a baby in the past 12 months; or if you or your partner receive certain benefits, or you are younger than 20 years old and are dependent on someone who receives these benefits.
Water bills
In England and Wales, the average increase is just over 6%, equating to an average annual bill from £445 to £473 by 2024-2025, according to industry body Water UK.
However, your actual bills will vary depending on where you live and how you are billed. In the Anglian Water area they will increase by £40 (8%) to £529 per year. In the Southern Water area it will be £51 (12%), for a total of £479. At Hafren Dyfrdwy in Wales it is 20%, or £71, to £433. At Wessex Water it is £548.
In Scotland, an average increase of £35.95 per year (8.8%) will come into effect for the period 2024-2025.
What can you do about it? In many cases, the best move for those still paying the standard rate is to have a free water meter installed, meaning you only pay for what you use. Many households will save more than €100 as a result. If you live in a flat or similar and a meter cannot be installed, you can request an “estimated cost account”, which will determine your bill based on the number of people in your home.
Meanwhile, around two million households are now receiving some form of financial support with their bills, including reduced rates, payment holidays and ‘debt cancellation’, Water UK says.
If you have difficulty with this, please contact your water company. The Water Great Britain And Of what websites provide an overview of the help available.