MILLIONS of households will pay more for essentials like food and bills as the cost of living continues to rise this year.
Many hikes will be launched at the start of the new financial year in April and it helps to prepare well for them not to be shocked.
Gas and electricity bills will increase from April because that’s when the energy differential increases.
Mobile and broadband costs will also increase for many homes across the UK.
Inflation rates rose in December, and a second hike is expected this month, which will have an impact on mortgage rates.
Meanwhile, the tax bills will increase in 2022 as national insurance and council tax will increase.
It keeps you aware of all the upcoming changes and how much they will cost you, so you can take steps to budget and protect your finances.
We explain how to calculate how much your bills will increase this year as the cost of living crisis grows.
The energy price cap will be reviewed in February and any changes will take effect from April.
The energy price limit limits the amount suppliers can charge for default rates and it will increase this year.
It is reviewed every six months, with the next update set for February 7.
Millions of households applied a cheap flat rate when their previous suppliers went bankrupt, meaning they were protected by a price cap.
But the limit is expected to increase from £1,277 to £1,900 for an average household.
That means millions of Britons will pay an extra £600 a year for energy bill when the new limit was introduced in April.
This comes down to a monthly increment of £50, but the actual increase will depend on your energy use and how efficient your home and appliances are.
Mobile and broadband bills
Many UK mobile networks and broadband providers are prepare to raise their prices from April.
EE, Vodafone and BT monthly paying customers will see their bills increase by 9.3% by the end of the year.
A Sun investigation found EE – owned by BT – was raising prices by as much as £73.68 a year.
O2 has yet to announce how much the payouts will increase, but that will be revealed in February.
You can’t escape these mid-contract rallies because they’re part of the deal you signed.
Check your contract to see how much you currently pay. Your supplier will contact you to let you know how much it will add.
Mortgage interest rate
The Bank of England is preparing to raise capital interest rate at a meeting this week after voting through the increase in December.
That could impact your mortgage payments.
The bank raised interest rates 0.25% at the end of last yearfor the first time since August 2018 and lenders raised their rates within hours.
Following the rally, Santander said all its tracking mortgage products related to the Bank’s prime rate will increase 0.15 percentage points.
Its Follow-up Rate (FoR) has increased to 3.5% and the Standard Variable Rate (SVR) will increase by 0.15 percentage points.
Barclays’ SVR increased from 4.59% to 4.74% after the increase and Alliance & Leicester and Santander’s SVR increased to 4.49%.
The Bank’s monetary policy committee will meet on Thursday to vote on whether to raise it for a second time.
Raising interest rates is bad for anyone in debt – especially if you’re not tied to a fixed rate – and your mortgage repayment could suffer.
Stay tuned for the Bank’s announcement this week.
If interest rates rise, your mortgage provider will contact you to let you know how much it will affect you.
National insurance rates will increase in April, with the Prime Minister determined to push ahead with the controversial plan.
Taxes will increase by 1.25 percentage points this year, meaning workers will have to pay hundreds of pounds more each year.
The exact amount you will pay depends on your salary.
It will be add £130 a year to UK tax bill at £20,000 salaryand £255 for those earning £30,000.
Those over £50,000 will pay an extra £505 a year, those over £80,000 will have to fork out £880 and those earning over £100,000 will have to pay an extra £1,130.
Proceeds will be used to pay for health and social care reforms and clear the Covid backlog.
To find out how much more you will have to pay, calculate what 13.25% of your annual salary is.
Rail fares are expected to grow 3.8% this yearThe Department of Transportation confirmed in December, in the biggest increase in train fares in a decade.
This spike is due in March and could add hundreds of pounds to the commuting costs of commuters unable to drive or walk to work.
For example, an annual commute from Oxford to London that includes a London tourist pass would increase by £245 to £6,700.
An annual ticket from Tunbridge Wells to London that includes a travel pass will increase by more than £220 to £6,033.
And the commute from Macclesfield to Manchester will increase by £84 to £2,284 a year.
The amount you will be charged depends on the route you take, how often you travel, and whether you qualify for the Railcard discount.
You can work out how much more you’ll pay by finding out your current annual fare and adding 3.8%.
Families in the UK will face bigger bills this year because local government increased council tax rate up to 5%.
The tax board funds schools and local services such as garbage collection.
Prime Minister Rishi Sunak announced in the latest budget that the local government can increase interest rate up to 3% without holding a referendum.
Above all, they can add additional 2% which is a barrier to adult social care.
Some may add more to the adult social care section, as it may have been carried over from last year.
The amount you will pay is determined by your local council and depends on the property “group” you live in.
Check what council tax range your property falls under to find out what increases will cost you.
You can find your local council using the gov.uk search engine.
You will then be sent a council tax bill in April stating the amount you owe.
Residents can choose to pay over a 10-month period.
You can also choose to pay in installments over 12 months if you want – although you won’t benefit from the payment pause at the end of 2022.
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https://www.thesun.co.uk/money/17495178/calculate-how-much-bills-will-go-up-in-april/ How to calculate how much your bills will increase in April as the cost of living crisis looms for millions of households