SOARING household bills are set to bring fresh pain to family budgets this year.
Energy costs jumped this month, while water rates and council tax will leap in the spring.
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Broadband hikes were also confirmed this week as inflation unexpectedly rose in December.
Yet discounts and bargain deals which could provide a financial lifeline are left unclaimed.
Rachel Wait reveals more and how to cut costs.
Energy
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TYPICAL energy bills rose by £94 to £1,928 a year on January 1.
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Low-income households can get £150 off through the Warm Home Discount.
The money comes off automatically by the end of March, except in Scotland where you will need to contact your energy provider.
Contact the helpline on 0800 030 9322 by February 29 to check your eligibility.
Cold Weather Payments of £25 are also automatically given out when temperatures plunge below zero each consecutive seven-day period between November and March.
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See cold weatherpayments.dwp.gov.uk.
If you have fallen behind on bills, major suppliers offer grants worth up to £1,500 each. Contact your provider for eligibility criteria and how to apply.
The most effective way to save on energy bills is by reducing usage.
Turn off radiators in rooms you are not using and banish draughts to heat your home more efficiently.
Making small changes can save £445 a year, according to the Energy Saving Trust.
For example, turning off electrical devices at the plug and washing at 30C instead of 40C can save £84.
SAVING: up to £670 A YEAR
Water
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WATER providers usually hike bills in April, but exact price increases are not yet confirmed.
Social tariffs, for benefit claimants, can save you up to 50 per cent, and Royal London’s consumer finance specialist Sarah Pennells says: “The rules on who qualifies and how much you get varies between suppliers, so check what yours offers.”
Those on certain benefits, such as Universal Credit, Pension Credit or Housing Benefit, may also qualify for the WaterSure scheme.
Recipients must use a lot of water due to a medical condition such as Crohn’s disease or kidney failure, or receive Child Benefit for three or more children aged under 19.
You must also have a water meter installed and live in England or Wales.
The scheme caps bills at the average amount for your supplier without impacting usage.
To go further, consider requesting a water meter if you don’t have one.
Limiting shower times, fixing leaks and using water-saving gadgets are other easy ways to cut costs with little effort.
SAVING: £307 A YEAR
Mortgage/Rent
HOMEOWNERS coming off a fixed loan rate this year will pay an extra £240 a month on average due to higher interest rates, according to the Bank of England.
If you are due to remortgage, don’t just stay with the same lender and instead check if you can get a better rate elsewhere.
For example, a rate of 4.3 per cent rather than 4.5 would save £29 a month, or £348 a year, on a £250,000 loan over 25 years.
Consider using a broker to find the best deal for your circumstances. Extending the mortgage term can reduce monthly repayments, but you’ll pay more interest in the long term.
If you’re on Universal Credit, check if you qualify for help with interest charges through Support for Mortgage Interest (SMI). Just remember it’s a loan, so it will need to be paid back.
Rents have reached record highs but if you’re a private renter, don’t just accept the hikes.
Landlords want reliable tenants, so use that to your advantage and haggle. Or if you are a council tenant, see if you qualify for a discretionary housing payment.
SAVING: £348 OR MORE
Broadband/phone and TV
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BROADBAND and mobile providers will raise prices by up to 7.9 per cent from March 31, while the TV licence will increase by £10.50 to £169.50 on April 1.
Families receiving certain benefits, including Universal Credit, may qualify for a social tariff on broadband and phone contracts.
These are special low-cost deals, with prices starting at £12 a month.
Four million households are eligible but not signed up, missing out on savings of £250 a year.
Talk to your supplier about what is on offer or check the Ofcom website for eligibility at ofcom.org.uk.
If your provider does not offer one, you can switch to one that does.
For more savings, regularly check your mobile phone bills so you are not paying for more data than you need.
You can also save money by haggling and switching providers. Text “INFO” to 85075 for free to find out if you will be charged any fees to leave your contract.
And anyone who is 75 or older and receives Pension Credit can get a free TV licence.
You can also apply if you live with someone in this situation.
Apply at tvlicensing.co.uk or call 0300 790 6117.
SAVING: £250 A YEAR
Council tax
MOST councils will be hiking their bills by five per cent from April.
Sole adults can get a 25 per cent discount, which you can also get if you live with someone classed as “disregarded”, which includes full-time students, apprentices and those with severe dementia.
The reduction rises to 50 per cent if everyone in your home is classed as “disregarded”.
You usually apply for the discounts through your local council’s website.
Those on a low income or certain benefits, such as Universal Credit or the guaranteed part of Pension Credit, may get extra discounts or their bill wiped altogether.
If you are struggling with your bills, apply to your council for a discretionary reduction.
Explain why you need the help and include, for example, doctor’s notes or a list of income and spending each month.
The average Band D council tax bill in England is currently £2,065 a year.
SAVING: UP TO £2,065 A YEAR
No child benefit is plus for pensions
HALF a million parents could get a boost in retirement following a shake-up of child benefit rules.
Families will be able to claim National Insurance credits for YEARS in the past when they didn’t claim child benefit, the Government announced this week.
You can normally only backdate child benefit claims for three months.
The planned changes, from April 2026, will let parents backdate claims to 2013, when the high income child benefit charge was introduced.
It makes families in which either parent earns more than £50,000 pay back some of the benefit to HMRC.
The amount is charged on a sliding scale up to earnings of £60,000, at which point they have to repay in full.
Hundreds of thousands of parents have stopped claiming child benefit since the charge was introduced, government figures show.
As a result, they have unknowingly missed out on credits that top up their state pension.
The only way to claim them is by ticking a box on the child benefit form to say you want them, even if you don’t want to receive the cash benefit.
These credits plug gaps in your NI record for any years you stop working to care for children under 12, so your state pension entitlement isn’t affected.
You need 35 qualifying years of NI to get the full basic state pension – currently £203.85 a week – either through contributions made by working or NI credits.
If taking time off work means you will get fewer years than this, it’s worth getting the credits.
Those who started a family in 2013 and never claimed child benefit could have lost out on 11 years’ NI credits.
Over a 20-year retirement, they face losing out on up to £66,629 in state pension.
Former pensions minister Steve Webb, now partner at consultancy firm LCP, says: “It’s welcome news that the Government is finally going to address the problem of parents missing out on vital credits towards their state pension.
“However, it is extraordinary that we have had ten years in which people’s state pension records have been damaged by the impact of the high income child benefit charge.”
Child benefit is paid to parents and other people responsible for bringing up a child. It’s worth £24 a week for the first child and £15.90 for any others.
To make a claim, visit the government website at gov.uk/child-benefit.
Applications can be made online or by downloading the paper form.
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You don’t need to claim child benefit to get the credits, but you must specify this on the document.
At question 62 on the paper version, tick the box next to where it says, “I do not want to be paid child benefit, but I do want to protect my state pension”.
