Council Tax, water bills, State Pension: big money changes for the 2024/25 financial year
From Council Tax increases to the State Pension hike, there are loads of big money changes being introduced from April 6.
April marks the start of the new tax year, so it’s always a notable time when it comes to our money.
And while there are an awful lot of increases to our monthly bills kicking in, there are also plenty of money changes set to take place which will have an impact on our financial health, good and bad.
State Pension increase
The State Pension goes up each year, courtesy of the triple lock.
That ensures that payments go up by whichever is the largest of the rate of inflation, the rate of wage growth, or 2.5%.
As a result, it will grow by 8.5%, meaning that the New State Pension will be worth £221.20 a week, while the old basic State Pension will be £169.50 a week.
For more on the State Pension, check out our guide.
Benefits increase
It’s not just the State Pension that is going up in April. Inflation-linked benefits and tax credits will be rising by 6.7%.
This includes everything from Pension Credit to the Carer’s Allowance.
Council Tax rise
Many of us will have to cough up almost 5% more on our Council Tax each month.
Around three-quarters of councils are looking to raise bills by 4.99%, the most allowed without holding a local referendum, according to research from the County Councils Network.
That increase works out at an extra £99 on average for households, though of course, the exact increase will vary by region.
Capital Gains Tax allowance trimmed
If you are due to pay Capital Gains Tax (CGT) on the profits made from selling off assets, then your tax bill may increase from the new tax year.
We all get an annual allowance, which covers how much you can make from these sales before paying tax on the profits.
That allowance has been in freefall over recent years.
It went from £12,300 to £6,000 last year and will plummet again to just £3,000 in the 2024/25 tax year.
Dividend Allowance reduced
Another tax allowance that’s been dramatically reduced is the Dividend Allowance.
It halved to £1,000 in 2023 and is doing so again this time around to just £500.
Mobile, broadband and TV bills
A whole host of providers are hiking their bills from next month.
For example, Virgin Media and O2, which merged in 2021, are increasing prices by an average of 8.8%, while BT is upping average bills by 7.9%, as is EE.
Most companies will increase their bills by the rate of inflation – plus a certain percentage on top each year.
That’s why it’s vital to constantly shop around for the best deals.
Sky customers are also being hit with average increases of 6.7% from the start of April, even though it doesn’t link hikes to inflation.
Water bills
Water bills are going up by an average of around £27.40 a year for the coming financial year, taking the average to £473.
Of course, the actual size of your bills ‒ and the amount they are being increased by ‒ will vary depending on your location and usage. Some areas will be paying up to £548 a year after increases of around 9%.
Check out our explanation of what’s happening with water bills in your area.
VED increase
Car tax, or to use its proper name, Vehicle Excise Duty (VED), will increase in line with Retail Prices Index (RPI) measure of inflation.
The actual amount of tax you pay will depend on factors such as the type of vehicle, when it was first registered, engine size, list price when new and CO2 emissions.
With VED, you pay a first-year rate based on your car’s emissions levels, followed by a standard rate in the years of ownership thereafter.
We’re still waiting for the official increases from the DVLA but most observers expect the flat rate to rise by at least £10 to £190.
Stamps are on the rise again
It’ll become even more expensive to send a letter.
The price of a first-class stamp will now cost £1.35. It rose from 95p to £1.10 in April 2023 and then increased to £1.25 in October.
Second-class stamps are becoming more costly too, increasing by 10p to 85p.
Comments
Be the first to comment
Do you want to comment on this article? You need to be signed in for this feature