Who is Exempt from the Broadband Price Increase?

Annual adjustments to council tax, broadband, and water services to take effect on April 1, collectively posing a financial challenge.

20:39 06 April 2024

Edward Newman, CEO of Finance.co.uk, cautioned that the looming triple whammy of bill increases, including council tax, broadband, and water services, could collectively amount to an inflation-busting surge of up to £200 annually. He stressed the significance of vigilance in managing bills to avoid overpaying.

Most councils in England and Wales are slated to raise council tax bills by at least five percent, with some seeing hikes of up to 10 percent. The extent of the increase varies by local authority, but a five percent rise could mean an additional £103 per year for the average Band D property, reaching a substantial £2,168. Larger properties may incur even higher costs.

Newman urged individuals on low incomes or receiving benefits to explore eligibility for means-tested Council Tax Reduction, which could alleviate financial strain. Pensioners, especially those qualifying for the Guarantee Credit element of Pension Credit or receiving Attendance Allowance, may also qualify for council tax relief.

In light of substantial broadband price hikes from major providers like Virgin Media, O2, BT, Vodafone, and TalkTalk, estimated at 8.8 percent, 7.9 percent, and 7.7 percent respectively, Newman highlighted the importance of consumer empowerment. Seven million households are in a favorable position to negotiate or switch providers to mitigate the impact.

For broadband users, Catherine Hiley, broadband spokesperson for GoCompare, advised leveraging the end of contract periods to secure cheaper deals either by switching providers or negotiating with the current one. Despite potential early termination penalties, the long-term savings could outweigh these costs. Additionally, many pensioners may be unaware of potential savings through social tariffs, underscoring the importance of exploring all available options for bill management.