Money news for April, including the growing cost of essentials, Mastercard money back and whether you can you cut your car tax.
The main thing growing this spring is the price of essentials. On 1 April, electricity and gas prices are up 6.4%, council tax is going up by 4.9% in most parts of Britain (more in some), a TV licence is £5 a year more, and water will cost on average £603 a year in England, a rise of £123 or 26%.
The biggest increase is for customers of Southern Water with new bills averaging £703, up an eye-watering £225 a year, or 47%. In Wales, an average bill will increase by £138 a year to £575 – a 27% rise.
If there are fewer people than bedrooms in your home, or the same number, then a water meter will probably save you money – ask your supplier. If you are finding it difficult to pay your bill, ask about social tariffs. In Scotland, where water charges are collected through council tax, the rise is just under 10%.
Electricity and gas firms are banned from sending a first bill for energy used more than 12 months earlier – but they are doing it. In the year to last September, more than 3,300 customers complained to the energy ombudsman about what’s called ‘back billing’. In many cases the bills are huge.
The chief executive of the trade body Energy UK said there may be a fault in their systems and energy secretary Ed Miliband has called on regulator Ofgem to sort it out.
If you get a new bill for energy used more than 12 months before, you do not have to pay it. Contact your supplier, explain back billing is banned under Standard Condition 21BA of their licence, and they must cancel the bill. If they refuse, you can complain at energyombudsman.org.
People who lived in the UK and used Mastercard credit cards to buy things between 1992 and 2008 may get a refund of up to £45. A case brought by former chief ombudsman Walter Merricks was settled by the Competition Appeal Tribunal at the end of February over what he said were excess ‘swipe fees’ – the charge levied on firms when cards were used. That led to higher prices for customers.
People will have to come forward to get a payment, but details of how are not yet clear.
Car tax is rising too, but if you get a disability benefit for mobility you may be able to get the cost halved, or even get your tax for free.
Apply when taxing the car. More information at gov.uk.
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