With the new financial year set to start, there will be some changes to household bills that you should be aware of. This article covers all you need to know.
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Mortgage
Repossessions
According to the Financial Conduct Authority (FCA), the general ban on mortgage repossessions ends on 1 April. This means that a lender can repossess your home if you are behind with your mortgage repayments.
Before you start panicking, the FCA has also said that lenders must act within strict guidelines before a repossession takes place.
If you are struggling to make your mortgage payments it might be worth contacting your lender. They may be able to offer you help and guidance.
Help to Buy: Equity Loan
If you are thinking about buying your first home, the good news is that applications for the new Help to Buy: Equity Loan scheme are now being accepted. If you want further details on this scheme, check out our article that tells you everything you need to know.
Council Tax
According to The Office for Budget Responsibility, households will have to pay an extra £1.8 billion in Council Tax in the 2021/22 tax year. This means that the average bill will increase by around £100.
The increase in Council Tax applies to England and Wales only. Scottish councils have chosen to freeze their Council Tax for the coming tax year.
If you are uncertain about which council your property falls under, you can use the gov.uk website local council finder.
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Energy
The energy regulator Ofgem announced that the energy price cap would increase from 1 April to levels last seen before the pandemic.
So for the first six months from 1 April, 11 million default tariff customers will see their household bills increase by £96. Also, bills will increase by £87 for four million pre-payment meter customers.
If you think you might be one of these customers, contact your energy provider to find out if you can change your energy tariff.
Water
The cost of this household bill is set to change, but this will depend on your water supplier.
On average, water and sewerage bills in England and Wales are set to fall by around £2 in 2021/22, but this will vary depending on the company.
If you are on a water meter, then it starts to get complicated. This is because the size of your water bill will depend on how much water you consume.
If you are not on a water meter, and your water consumption is minimal, then it might be worth getting one installed.
TV Licence
The cost of a standard colour TV licence is increasing by £1.50 to £159.
A TV licence is a legal requirement in the UK if you have a TV. However, there may be some alternative ways you can watch your favourite TV programmes. Many people are getting rid of their TV’s and using their laptops to access online catch-up and streaming services instead.
If you are thinking about doing this, it’s worth investigating the cost of these streaming services before making a commitment.
Take home
If you are finding it increasingly difficult to make ends meet, it’s better to seek help sooner rather than later. Citizens Advice and the Money Advice Service can offer further assistance.
