Smart ways to cut costs before April’s bill price hike

The details and figures of the upcoming bill hikes, set to take effect in April, have dominated newspaper headlines this week. While this news may feel overwhelming, there’s no need to panic, as small changes can lead to substantial savings.

From switching to a fixed-rate energy plan to renegotiating broadband and mobile contracts, and being mindful of daily energy consumption, here are some practical steps you can take to keep your costs in check…

Energy

Ofgem’s recent hike to the energy price cap will raise the monthly bill of an average household paying by direct debit by £9.25, or £111 annually. The cost of gas will increase from 6.34p per kilowatt-hour (kWh) to 6.99p per kWh, while the price of electricity will rise from 24.86p/kWh to 27.03p/kWh.

So, now might be a good time to switch to a fixed-rate deal.

“If a fixed tariff is available at a lower rate than the new price cap, ‘locking’ it in can provide stability for the next year,” says Amy Knight, personal finance expert at NerdWallet UK. “But, it’s important to check for any exit fees before committing.”

However, even with a fixed-rate deal, your energy bills will still be influenced by your usage.

“As we move into spring and summer, habits like hanging washing outside instead of using the tumble dryer, turning off unused lights and unplugging devices in standby mode could all help lower costs,” says Knight.

Water bills

Households in England and Wales will see their water bills increase by an average of £86 over the next year alone.

“Switching to a water meter can be a great way of lowering your bill, as you’ll be charged based on your actual usage not an estimate,” recommends Knight. “If your fixed-rate charge is based on property size, you might be overpaying. On top of this, installation is free.”

There are also several simple ways to save water daily that can accumulate and help reduce costs.

“To further reduce costs, watch out for wasted water; this includes fixing dripping taps, repairing toilet leaks, and avoiding leaving the tap running while brushing your teeth,” advises Knight.

Also, contact your water provider to find out about social tariffs which you may qualify for if you have low income and receive certain benefits, she adds.

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Broadband

Some customers will see rises in line with inflation, while others may face fixed hikes depending on when they signed up or upgraded.

For those on inflation-linked contracts, broadband prices will rise by an average of £21.99 annually, with some newer plans seeing increases of up to £42 a year, according to Uswitch.

If your broadband contract is nearing its end, shopping around or negotiating with the provider can lead to better deals.

“Some customers have successfully reduced costs by contacting their provider’s cancellation team, securing discounts, or upgrading to better packages at a lower price,” says Knight. “Locking into a longer-term contract can also provide savings over time.

“If you’re locked into a contract, set a reminder for when it ends to ensure a timely switch to a more cost-effective plan.”

Mobile

Switching mobile providers can lead to significant savings.

“If you’re considering jumping ship from your current provider to reduce your bill, text ‘INFO’ to 85075,” recommends Andy Aitken, CEO & co-founder of Honest, B Corp mobile network. “This free service, managed by Ofcom, will inform you immediately if your provider will charge you an exit fee for ending your contract early.

“If you do decide to terminate your contract, and want to keep your number, text ‘PAC’ to 65075.”

Before you begin looking for a new provider, take some time to determine your needs.

“You can find your data consumption on previous mobile bills,” says Aitken. “Start there, and then look for a deal that matches what you need.

“I’d also recommend considering opting for a SIM-only plan, and keeping your current phone or getting a refurbished one. The refurbished market is growing and you can get the latest model that seems as good as new, all while doing your bit for the planet and saving money.”

TV licence

April’s bill increases will see the price of a standard colour TV licence rise by £5 to £174.50 a year.

“If you don’t watch live TV on any channel or device, and you don’t use BBC iPlayer, you aren’t legally required to have a licence,” notes Knight. “This means that if you exclusively stream content on platforms like Netflix, YouTube, and Amazon Prime, it is best to cancel your licence fee.”

Also, check to see if you qualify for a discount.

“It’s also worth noting that people who are legally blind can apply for a 50% discount, while those over 75 and receiving Pension Credit qualify for a free TV licence,” adds Knight. “Although, you must actively apply for it.”