It’s National Price Hike Day on April 1st, when government bodies and private firms traditionally announce the increases in the cost of goods and services. This year, energy costs are set to skyrocket, with the cheapest energy tariff for a medium user surging to £1,971 – a staggering 118% increase year on year.

Worryingly, that’s the figure for people on their provider’s standard variable rate – which is controlled by the energy price cap. If you’re looking for a fixed-rate deal the cheapest is currently £2,949.87, almost £1,000 a year more – a 227% increase on the year.

According to the annual National Price Hike Report from the personal finance experts at money.co.uk, this increase is set to add an eye-watering 32.3 billion onto the total cost of living in the UK*.

James Andrews, Senior Personal Finance Editor at money.co.uk, said: “Households across the country have already been hugely impacted by the cost of living and energy crises, and latest data compiled for National Price Hike Day offers no reprieve – especially when it comes to surging energy prices.

“While we expected the figures to be bleak, to see that household energy prices have increased by a staggering 118% since last year, just adds to the financial misery being felt by many across the UK.

“Latest data shows that the cheapest energy tariff for a medium user has surged from £903.45 all the way up to £1,971, meaning that in 2022/2023, households could end up paying more than twice the amount they did for energy last year.

“Elsewhere, the data reveals price increases for other expenses, including stamps, water, broadband/phone packages and a pint of milk. While these may have been expected, the figures add up to lay bare the true extent of the cost of living crisis in real terms – which sees the total cost of living in the UK increasing by more than 32.3 billion.”

Money Saving Hacks

Money.co.uk Personal Finance Editor James Andrews has provided some money saving tips to help counter this year’s steep price increases:

“With energy on the rise, it’s more important than ever to make savings wherever you can. No amount of budgeting or saving tricks will completely offset this year’s massive price hike, however any cash you can claw back is a bonus.

“When it comes to heating there are some simple hacks. Turn it off when you’re not in the house, in rooms you don’t use or down by a degree or two when you are there (you probably won’t notice a small change in temperature). Also use draft excluders, reflector panels and insulation to keep the heat in.

“In terms of water, while there’s nothing you can do to change your water provider, minimising wastage is the best way to keep costs down.

“Fix any plumbing issues that result in leaking taps, install a water metre, store drinking water in the fridge so that you don’t need to run the tap to get it cold, and wash up using a bowl instead of simply running the tap constantly.

“In previous years, it was a good idea to shop around with different providers if your energy bill was on the rise to bag a deal. However, in the current climate it’s better to stick on the standard variable rate that is being limited by the price cap, but there are savings to be made elsewhere such as broadband and your phone – so shop around for the best deals.”

Here are all the price increases, big and small, coming to UK homes from April 1st:

Stamps
A single first-class stamp now costs 95p rather than 85p. That’s a price rise of 10p or 12% more than 2021. It’s also a 48% increase in price since 2016.

Prescriptions
Prescription costs have remained the same, at £9.35. That’s an 11% increase since 2016.

NHS Dental Check
NHS dental checks have also remained at the same price, £23.80 – a 21% increase on 2016’s figures.

TV Licence
The price of watching TV or iPlayer has remained at £159, which is the same figure as last year. That’s a 9% increase since 2016.

Air Passenger Duty
Similarly, the cost of duty for air travel (Band B – over 2,000 miles) has remained the same, at £185. However, the figure still represents a 27% increase since 2016.

Pint of Milk
The cost of a pint of milk has risen from 55p to 58p, a 5% increase on 2021, and 38% increase since 2016.

Mobile Phone Contract
The cheapest sim-only contract in 2022 is £3.95 a month, a 0% increase on the year.

Broadband & Home Phone
The cost of the cheapest broadband and home package has increased from £17.50 to £18. This is a 3% rise on the year, and a 35% increase since 2016.

Council Tax
Council tax (the average cost for someone in Band D) has increased from £,1881 to £1,966, a 5% increase on the year, and a 28% surge since 2016.

Energy
The cheapest energy tariff for a medium user has surged by 118%. Up from £903.45 in 2021 to £1,971 in 2022. That’s an increase of 168% since 2016.

Water
Water bills have increased by 3%, from £408 to £419. That’s an 8% increase on 2016.

For more information on how costs have increased or decreased since 2016 visit the money.co.uk National Price Hike Day Report.

While some expenses are unavoidable, like energy and council tax payments, there are a number of tips and tricks that you can make the most of to help you save elsewhere.

When it comes to making purchases, if you take out an interest-free credit card then your provider will not charge you interest on any new purchases for a set period. Commonly known as 0% interest cards, they are often used for buying big, expensive products and can allow you to spread out the purchase cost without paying any interest.

Meanwhile, you can earn money by switching things like your current account, with some banks offering a free £150 for making the move. Something called the current account switching service automatically moves your direct debits, meaning it’s free and pain free money in your bank account to help mitigate some of the pain from this year’s price hikes.

And when it comes to council tax, it’s essential that you check your account to make sure you’re in the right tax band. Each year, thousands of families are overcharged by as much as 20%, and fees are going up, so you should check your tax band on the government website now to make sure you’re not being overcharged.