Providers often increase their prices in line with inflation plus an additional few percentage points. This means many consumers face a double-digit percentage increase in the new tax year.
Sarah Pennells, personal finance expert at Royal London, said many Britons will see their annual household bills increase by hundreds from April.
She warned this will likely include a big increase in broadband bills, saying: “Broadband bills are forecast to spike by around 15 percent from April meaning annual hikes of between £39.72 to £95.04 annually.”
People will be searching for a cheaper deal with the looming bills hike but the analyst warned people to be careful how they go about this.
She explained: “Beware of switching your broadband or mobile phone provider during your contract as you may face penalties.
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Mr Doku said: “You may find that you are paying for more mobile data than you actually use, or paying for broadband speeds that you don’t necessarily need.
“Also, more than nine million broadband customers and eight million mobile customers are thought to be out of contract.
“If you’re out of contract on your broadband or mobile deals, the easiest way to minimise how much your bills go up is to switch to a new deal.
“In fact, you could save £321 by moving to SIM-only and keeping your existing handset, or £162 by switching your broadband.”
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Ms Pennells encouraged Britons to regularly review their household bills to make sure they are not overpaying, particularly with many bills going up in April.
She said: “It will take a bit of your time, but you may be able to save some money by doing this.
“The bad news is that the average household energy bill is set to rise by £500 to £3,000 annually from April under the Energy Price Guarantee (EPG) scheme because the Government has said it can no longer afford to subsidise lower bills.”
The Energy Price Guarantee was set up in October 2022 to cap the unit price of energy that suppliers can provide, with average bills for a typical household currently at £2,500 a year, increasing to £3,000 from the start of the new tax year.
Ms Pennells said water bills are also increasing by 7.1 percent across England and Wales, going up by an average of £31 a year per household, up to £448 in total.
She commented: “Unfortunately, you can’t switch water provider but there are steps you can take to cut your bills, like checking to see if you’d save money by switching to a meter.
“You may qualify for the WaterSure scheme which caps bills if you’re on benefits. Some suppliers offer discounts if you’re on a low income.”
Many councils in England are increasing their council tax rates by five percent from April. This means the average annual bill for a Band D property will go up by £98 a year to £2,064 a year.
The financial expert urged people to check if they can get a council tax discount, with reduced rates including 25 percent off for adults who live alone.
