Households across Britain will find balancing their family budgets more difficult this year as the cost of living continues to soar.
Millions of us will really feel the squeeze from April, when national insurance and inflation hikes come into effect.
Bills for electricity, gas, mobile phones, and council tax are also rising at a time when food prices are similarly going up.
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Interest rates have also risen, putting pressure on those with some types of mortgages, Wales Online reports.
As our outgoings skyrocket, people claiming a number of DWP and HMRC benefits will effectively see their payments reduced this year.
The independent Joseph Rowntree Foundation (JRF) has warned a planned real-terms cut to benefits in April could plunge hundreds of thousands of people into poverty.
Nine million families who receive benefits due to low incomes will be £500 worse off on average due to inflation from April, the foundation said.
Couple families with children in receipt of benefits due to low income will experience a real-terms cut of £720 per year, while the figure across all pensioner couples is £540 per year.
Benefits will rise by 3.1% on April 1, with inflation forecast to hit 7%.
Below, we take a look at some of the bills and outgoings that are set to rise from next month.
Energy bills
Ofgem was forced to hike the energy price cap to a record £1,971 for a typical household on a standard tariff as gas prices soared to unprecedented highs.
For customers with prepayment meters the price cap will go up by £708 to £2,017 from April, the regulator added.
Rishi Sunak has announced a £9 billion package, including a one-off repayable £200 discount and a £150 rebate on council tax bills, and £144 million to councils to support vulnerable households amid surging energy prices.
The Chancellor added he “doesn’t have a crystal ball” and warned households they will have to adjust to higher energy prices in the future.
National Insurance
National Insurance contributions are due to go up by 1.25 percentage points in April as consumers face mounting cost-of-living pressures.
From April 6, employer and employee National Insurance contributions will be put up, with the rate going back to its 2021/22 level the following year, and the income stream replaced by a new health and social care levy of 1.25 per cent.
The government confirmed the tax will increase from April 2022 to fund social care and help the NHS recover after the pandemic.
The hike means employees, employers and the self-employed will pay 1.25 pence more on the pound for National Insurance Contributions.
In a study carried out by polling company Ipsos, 31 per cent of Britons support the National Insurance increase – marginally more than the 28 per cent who are in opposition.
A similar proportion, 31 per cent, neither support nor oppose it.
The Senior Personal Finance editor at Money.co.uk warned this will be the equivalent to a 10 per cent increase in deductions from pay packets for most people across the country.
James Andrew said: "With National Insurance (NI) increasing by 1.25% points in April, it’s no surprise that many UK workers think this means their payments are going up by only a fraction.
“However, that figure relates to the rate, and this means that for most people contributions are actually increasing by more than 10%."
Virgin Mobile and O2
Bills for O2 and Virgin Mobile customers are to increase by up to 11.7 per cent as the cost of living crisis continues to push prices up.
O2 and Virgin Mobile networks merged last year and bills for some pay monthly customers will rise by up to £48 a year
The increases will hit from April 1.
The exact amount your bill will rise by will depend on the network you are on, your contract, and when you joined.
Sky and Virgin TV
Millions of Sky customers faces rises of £43 extra a year from April, as the telecoms giant raises broadband and TV bills.
The firm said that the average customer will pay an additional £3.60 a month from April.
Virgin Media has already put its prices up, with customers seeing an average hike of £56 per year as of March 1.
This also impacts customers who have broadband with the provider.
Water bills
Water bills are set to rise from April adding to the cost of living crisis due to hit households across the country.
The average water and sewerage bill will go up by 1.7 per cent in the next financial year, far below annual inflation rates, industry body Water UK said.
It will add £7 to the average bill, an increase which pales in comparison to the £693 added to many households’ energy bills from April.
It means the average yearly bill will rise to £419, with support available for those who need it.
Council Tax
Councils across the region are preparing to increase taxes as much as three per cent from April.
Local authorities are starting to publish their draft budget proposals for the 2022/23 financial year, which is where you'll find information on the rise.
If you haven't been contacted with your new bill just yet, it is worth keeping an eye on your council website to see when they publish the new rates.
However, there will be £150 rebate for all households in England that are in council tax bands A, B, C or D.
Interest rates
The Bank of England has increased interest rates twice in the past three months to rein in rocketing inflation.
The latest rise to 0.5 per cent in February marked the first back-to-back hike since 2004.
It has also signalled that more rises are on the way and experts believe the base rate could hit one per cent in May.
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