Awful April is worse for poor people – who spend nearly HALF their income on just SIX bills

Households across the UK are bracing for a series of bill increases that have come into effect today, marking the beginning of an economically taxing period dubbed “Awful April.” This surge in costs is hitting  those on the lowest incomes hardest, with their finances stretched woefully thin. This is to the point where nearly half their income will go on just six bills – and that doesn’t even include rent.

Awful April – well, for poor people, anyway

Citizens Advice has issued a stark warning, stating that even prior to these changes, individuals and families with the lowest incomes were already spending around 41% of their earnings on essential bills including water, energy, broadband, and car insurance.

In contrast, those in the middle-income bracket were spending only 11%, and the wealthiest households a mere 5%. Clare Moriarty, chief executive of Citizens Advice, elaborated on the dire situation, saying:

After years of cost-of-living pressures, households across the country are about to feel the extra shock of rising essential bills. But for those on the lowest incomes, these unavoidable costs are already eating away at their finances, leaving their budgets stretched beyond breaking point.

Moriarty also highlighted the need for action:

Social tariffs could be an effective safety net and put money back in people’s pockets, but the Government and providers must work together to make sure nobody struggling to make ends meet misses out.

Local councils, particularly those in England, are expected to impose maximum hikes to council tax, reaching an average increase of 4.99%—a move that could further burden families already facing these rising costs.

High-profile councils like Birmingham, Newham, and Trafford are among those that have received special permission to increase their rates even higher, further signalling the alleviate pressures on their budgeting.

The hikes are here

Starting from today, households will see a noticeable hike in several key areas:

Energy Costs: The energy price cap, regulated by Ofgem, has increased, which translates to an added £9.25 monthly, or £111 annually, for the average household relying on direct debit payments. The cost of gas has surged from 6.34 pence per kilowatt-hour to 6.99 pence, while electricity has jumped from 24.86 pence to 27.03 pence per kilowatt-hour. With energy bills already reaching an average of £1,738, these increases will contribute significantly to the financial strain many families face.

Water Bills: In what has been described as “extortionate” by concerned advocacy groups, households across England and Wales can expect their water bills to increase by an average of £86 in just the next year—a staggering rise of 20%. Companies like Southern Water and Severn Trent will see increases soaring upwards of 47%, pushing many families deeper into financial difficulty.

Council Tax: The anticipated surge in council tax will leave millions of households grappling with an increase. The projected new annual figure for a typical Band D property is set to reach £2,280. All councils across Merseyside, for instance, are imposing the maximum allowed increase. Families are encouraged to investigate any available support options from their local councils to help mitigate this financial hit.

Mobile and Broadband: Added to the financial burden, broadband and mobile contracts are also seeing price hikes, with average increases of £21.99 and £15.90 respectively. Households that are locked into inflation-link contracts could be particularly affected, witnessing bills rise significantly without warning. There are suggestions that consumers should actively check their contracts to explore potential savings through switching providers.

TV Licence Fee: In today’s increases, the standard price of a TV licence has risen by £5 to £174.50, further impacting household budgets. It remains crucial for eligible claimants, particularly those over the age of 75, to remember that they can still apply for exemptions under specific conditions, ensuring they do not miss out on necessary financial support.

Car Tax: Lastly, an increase in car tax adds to the woes. New standard rate taxes for cars registered post-April 2017 will go up by £5, while owners of electric vehicles will no longer enjoy exemption from car tax. This is a notable shift, especially for those who switched to electric cars with the promise of being free from tax burdens.

Awful April: making ends meet?

Of course, on top of all of this is the fact that social housing rents also go up by more than inflation every April. This is thanks to the previous Conservative government dropping a freeze on how much housing associations could increase rents by.

So, as households brace themselves for the financial repercussions of these new rates, the undercurrent of frustration and helplessness among benefit claimants, disabled people, and jobseekers persists.

With the ongoing pressures imposed by significant increases across essential services, the reality presents a challenging landscape for those already struggling to make ends meet.

Featured image via the Canary