APRIL ENERGY PRICE GUARANTEE ENDS
Then prime minister Liz Truss intended to protect Brits from some of the worse energy price hikes for the two years.
But under Rishi Sunak’s belt-tightening budget, the Energy Price Guarantee will no longer be universal from April.
Instead, the guarantee will rise to a higher level, meaning the average household will pay about £3,000 for their annual energy bill.
The guarantee will be in place until April 2024.
Though, thanks to unseasonably warm weather leading to Europe using less gas, the price cap rise might not be as dizzyingly high as expected.
Energy consultancy Cornwall Insight expects Ofgem’s new cap to fall by £600.
TAX YEAR ENDS
April 5 is the final day of the tax year and the deadline to use up savings allowances, such as Isas and pensions.
Though, investors can pay into stocks and shares Isa and hold it as cash if they don’t want to rush an investment.
Annual pensions contributions allowances of £40,000 will also reset.
The Treasury confirmed in November that state pensions would rise in April to match inflation.
From April 10, state pensions will increase by 10.1%, meaning they will be boosted by a record £972.40 to £10,600.20 a year (or £203.85 a week).
High-earners will now have to pay more income tax from April 6.
Income tax itself hasn’t gone up, but instead, the threshold at which people start paying or move into a higher band has lowered.
Now those earning over £125,140 will fall into the 45% top rate, rather than £150,000.
The tax-free allowance shareholders get on dividends will fall from £2,000 to £1,000 per person.
More tax increases – the tax businesses pay from their profits will increase from 19% to 25%.
BROADBAND AND PHONE BILLS MAY RISE
Brits might have to brace themselves for even higher bills.
Broadband, phone and water suppliers tend to raise their prices every April to match the consumer price index published in January.
On top of that, broadband providers whack an additional 3.7-3.9%.
If you’re at the end of your contract, now might be the best time to cancel it and lock in a new deal.
BUT WATER MIGHT GO DOWN
When it comes to water, however, there will be a sigh of relief as those costs should go down.
Water firms didn’t quite meet the targets imported by water regulator Ofwat on issues like pollution.
Though, because inflation rates are so stubborn right now, some firms might raise prices anyway.