National Price Hike Day 2021 - Almost £6 billion in extra costs for Brits

• Average cost of living set to rise by £206 a home on April 1st

• Additional prices increase for Stamps (8%), Water (3%), Air Passenger Duty (5%), Pint of Milk (10%) and Council tax (4%)

• New report estimates £5.95 billion in added costs this year, with average cost of living increasing by £5.69 billion alone

• Personal finance experts launch annual National Price Hike Day report 

It is National Price Hike Day on April 1st 2021, and the cost of living* is set to spike by almost 10% - that’s an extra £206.41 for the 27.6 million homes in the UK. 

According to the annual National Price Hike Report from financial comparison site money.co.uk, this price increase is set to add an eye watering £5.69bn onto the average cost of living (that’s inclusive of your water bill, TV licence, energy bill, broadband and mobile phone payment). 

If you add in other changes, such as price increases for stamps, prescriptions, and the simple cost of a pint of milk, that’s £5.95bn in extra costs across the UK.

James Andrews, personal finance expert at money.co.uk, said: “The financial year means many companies will be increasing their costs. In some instances, for example with your electricity bill, you’ll be notified of the change – but the vast majority of price changes have either already happened or will come with no warning at all.

“Although some of the changes seem small, they add up to a £206 extra for each household, which is hardly ideal given the particularly turbulent financial year many of us have had.

“Some price increases – such as that on stamps, prescriptions and TV licences – are unavoidable but you can save yourself some cash this year by ensuring you have the best possible energy, phone and broadband deal. Be constantly on the lookout for new offers, and don’t hesitate to switch providers if your contract is up and a better deal can be found elsewhere.”

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

Stamps

A single first-class stamp now costs 85p rather than 79p. That’s a price rise of 6p or 8% more than 2020. It’s a 35% increase in price since 2015.

Prescriptions

The cost of a standard prescription has risen from £9.15 to £9.35, a 2% rise on 2020 but a 14% increase compared to prescription costs in 2015.

NHS Dental Check

Unlike other costs on the list, NHS band one charges have increased recently - in December 2020 to £23.80 up from 2019s price of £22.70. As we’re only four months on from the recent hike, it’s likely that the price will remain at this level for the remainder of the year. 

TV Licence

The price of watching TV or iPlayer is up from £157.50 to £159, a £1.50 increase, or 1%. TV licences have gone up by 9% since 2015.

Air Passenger Duty

The cost of duty for air travel (Band B - over 2,000 miles) is up from £176 to £185 – an increase of 5% on 2020 and a 30% rise since 2015.

Pint of Milk

The cost of a pint of milk has risen from 50p to 55p, a 10% increase on 2020.

Mobile Phone Contract

The cheapest sim-only contract will now cost £3.95 a month, up from £3.95 in 2020 – a 0% increase. Since 2015, however Mobile phone sim-only contract costs have actually declined in price. 

Broadband & Home Phone

The cost of the cheapest broadband and home package has risen from £15.90 in 2020 to £17.50 – a price hike of around 10%. 

Council Tax

The cost of a band D average house has risen from £1,817 in 2020 to £1,881 – an increase of 4%. Council Tax bills have risen 27% since 2015.

For more information on how costs have increased or decreased since 2015 visit the money.co.uk National Price Hike Day Report.

Energy 

Despite falling from 2019-2020, the cheapest energy tariff for a medium user has hiked by over 15%. Up from £776.14 in 2020 to £903.45 in 2021. That’s an increase of 4% since 2015. 

Water

Similarly, despite falling to just £396 on average in 2019, water bills are up again to £408, a 3% increase on last year and a 6% increase on 2015. 

For more information on how costs have increased or decreased since 2015 visit the money.co.uk National Price Hike Day Report.

-Ends-

For more information, please contact press@money.co.uk

Sources

* ‘cost of living’ based on the average water bill, TV licence, energy bill, broadband, council tax and mobile phone payment 

** costs are accurate as of 22.03.21 but may be subject to change 

https://www.statista.com/statistics/1180324/household-water-and-sewerage-bill-united-kingdom-uk/

https://www.themailingroom.com/why-switch/mailmark-smart/2021-postal-

https://www.themailingroom.com/why-switch/mailmark-smart/2021-postal-

https://www.newsandstar.co.uk/news/19085718.bbc-tv-licence-fee-rises-

https://www.independent.co.uk/travel/news-and-advice/air-passenger-duty-flight-tax-rise-budget-2022-b1811903.html

https://www.uswitch.com/broadband/packages/

[add sim only+Energy]

https://commonslibrary.parliament.uk/research-briefings/cdp-2021-0014/