Tory Party leader Kemi Badenoch criticized the rise in employer taxes, labeling it as a blow to working individuals that will harm businesses and lead to a reduction in job opportunities.
Starting this week, households will witness a significant increase in various bills such as energy, water, council tax, mobile, broadband, and car tax, shaping what has been referred to as “Awful April.”
Energy bills for Britons are set to rise by 6.4 percent following Ofgem’s third consecutive price cap adjustment, adding £111 annually to the average household expenses.
The National Energy Action estimates an overall annual increase in energy costs to £1,849, with Chief Executive Adam Scorer from the charity expressing concerns about the financial burden on households.
Water bills in England and Wales are also set to surge by an average of £86 yearly, as Ofwat permits water companies to raise bills by 36 percent over the next five years to fund infrastructure upgrades, with some suppliers implementing even higher increases.
Several councils plan to hike bills by a maximum of 4.99 percent, with exceptions such as Bradford receiving approval for a 9.99 percent increase.
A rise in TV Licence fees for colored sets to £174.50 annually and for black and white sets to £58.50 has also been implemented.
Wage Increases
Despite the surge in household expenses, Prime Minister Sir Keir Starmer believes that the rise in the minimum wage to £12.21 an hour and interest rate reductions by the Bank of England will offer relief to families nationwide.
Rising utility and council tax bills are just a fraction of the growing expenses affecting consumers.
Individuals with broadband contracts tied to inflation will see an average increase of £21.99 annually.
Mobile phone users are also facing similar hikes, although some providers have frozen prices until 2026 for customers who switched before April.
The standard car tax rate will rise to £195, and electric vehicle owners will now be subject to car tax.
Prime Minister Sir Keir Starmer during a visit to Nationwide Building Society in London, England, on April 1, 2025. Ian Vogler/Daily Mirror/PA Wire
Furthermore, from today, homebuyers in England and Northern Ireland may face higher costs due to reductions in stamp duty discounts, adding strain to their finances.
Starting April 1, first-time buyers will see the nil rate threshold drop from £425,000 to £300,000, while home movers will witness a halving of the threshold from £250,000 to £125,000.
This alteration follows a temporary increase in thresholds set by the Conservatives in 2022, scheduled to revert at the end of March 2025.
Food Inflation
The British Retail Consortium (BRC) reported a rise in food inflation last month, reaching 2.4 percent year-on-year, exceeding the three-month average and putting pressure on retailers to minimize cost hikes for customers.
BRC Chief Executive Helen Dickinson emphasized the effort made by retailers to absorb extra costs to avoid passing them on to customers.
A shopper walking through the aisle of a Tesco supermarket in London, England, on Sept. 3, 2022. Yui Mok/PA Wire
Dickson warned that with cost increases from the budget taking effect, inflation may rise further, with retailers encountering an additional £7bn in expenses. She stressed the need for upcoming legislation not to exacerbate costs and red tape.
Conservative Party leader Kemi Badenoch criticized the rise in employer taxes, highlighting its negative impact on workers, businesses, job availability, and the projected £3,500 extra burden on families by the end of the parliamentary term.
Badenoch expressed concerns on social media, noting that the increased hiring costs will affect everyone, particularly young individuals seeking entry-level jobs to begin their careers.
She pointed out that employers will face difficult choices due to the rise in taxes—whether to halt hiring, reduce wages, or close down.