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April has brought about a number of changes individuals will need to be aware of. They range from benefits to pay, bills and more – but what are they? Joe Lytwyn, senior partnerships manager at thimbl, broke down seven key changes.
Energy bills
The energy price guarantee is intended to protect UK consumers from soaring energy prices, putting a limit on how much suppliers can charge per unit or energy used. The guarantee will last for another year, following an extension, to April 2024.
Mr Lytwyn explained: “Although this has meant that the typical household bill would cost no more than £2,500 annually since October 2022, this was expected to increase by 20 percent to £3,000 this April. It is important to note, however, that this figure is determined by how much energy a household uses – if you use more, you will pay more.
“Despite this, the Government has recently announced in the Spring Budget that they will be making a U-turn on the scheduled price increase and instead keep the figures at £2,500 for a further three months.”
The £67 per month Energy Bills Support scheme has come to an end, with millions of households receiving their last discount on March 31.
State pension
From April 6, 2023, a 10.1 percent increase will come into force for the state pension in line with September 2022’s CPI inflation figure.
This is a result of the triple lock which sees the sum rise each year by whichever is the highest of: 2.5 percent, inflation or average earnings.
Mr Lytwyn said: “Retirees on the new state pension, having reached state pension age on or after April 6 2016, will now see this increase from £185.15 per week to £203.85 per week. Anyone on the basic state pension will see the rate rise from £141.85 per week to £156.20 per week.”
Benefits
All state benefits will also rise by 10.1 percent, with the Department for Work and Pensions (DWP) confirming this will help with the rising cost of living.
Mr Lytywn touched upon what this will mean for Universal Credit claimants who are out of work, on a low income, or unable to work.
He explained: “Those who claim this benefit that are both under 25 and single will see their allowance rise from £265.31 to £292.11 per month, whilst couples under 25 will see this rise from £416.45 to £458.51 per month. Similarly, single persons aged 25 and over will see their Universal Credit jump from £334.91 to £368.74, meanwhile, couples over 25 will receive an increase from £525.72 to £578.82.”
Other benefits set to receive a boost include Pension Credit, Personal Independence Payment (PIP) and Carer’s Allowance.
Stamps and postage
From today, Royal Mail has hiked their standard stamp prices by 15 percent.
It means the cost of first class stamps increase from 95p to £1.10, while second class stamp prices will rise from 68p to 75p.
Mr Lytwyn added: “Large-letter stamps will also be hit by this inflation, with first-class stamps rising from £1.45 to £1.60 and second-class stamps rising from £1.05 to £1.15.”
Explaining its reasoning, Nick Landon, chief commercial officer at Royal Mail, said: “We have to carefully balance our pricing against a continued decline in letter volumes and the increasing costs of delivering letters six days a week to an ever-growing number of addresses across the country.
“We need to make these price changes to ensure we can continue to maintain and invest in the one-price-goes-anywhere Universal Service for years to come.”
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