Martin Lewis discusses the April increase in energy bills
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A cost of living crisis is gripping Britain, and a number of key changes are going to make the financial lives of millions of Brits worse in 2022. From tax rises, supercharged energy bills, measly pension increases and little Government intervention to solve the burgeoning crisis, Brits should pencil in the following dates for updates on their finances this year.
February 3 – Bank of England interest rates
Inflation has soared as Brits spend more in shops following successive lockdowns and global supply chain issues push up the cost of goods.
Inflation soared to 5.1 percent in November and the Bank of England pushed interest rates up to 0.25 from a historic low of 0.1 percent.
A further rise is anticipated to quash the rising rate of inflation.
READ MORE: Should state pension age hike go ahead? Changes set for 2028
February 4: Energy price cap set
The new energy price cap will be the most anticipated in its short history, as bills have soared in recent months due to worldwide gas supply shortages.
The price cap is likely to rise significantly, with an increase of up to £600 predicted by some experts.
Energy sector specialist Cornwall Insights has said that energy bills could rise from an average of £1,277 per year to an incredible £1,865, which will bring many more households unaffordable heating costs.
April 6: Rise in National Insurance
The dreaded rise in National Insurance will take effect on April 6.
A rise of 1.25 percent will result in workers paying more tax on their earnings – which the Government will use to plug holes in the social care system and ease the NHS backlog caused by the coronavirus pandemic.
For example, those earning £30,000 a year now paying £2,452 will pay £255 extra per year – £2707 in total.
National Insurance rising to 13.25% – how much more will you pay? [ANALYSIS]
‘Savings losing value by the day!’ – Britons issued pension warning [REPORT]
Pension age will rise – everything you need to know about cash access [EXPLAINER]
April 6: State pension increase
The state pension will rise by only 3.1 percent in April – considerably lower than it would have if the triple lock hadn’t been scrapped.
The triple lock has been abandoned for this year, as the Treasury believed a rise according to the popular formula would have give pensioners a considerable increase.
Pensioners on the full rate will get a bump up from £179.60 to £185.15 a week, if approved by the government.
April 6: No fault divorces
Those who want to separate from their spouse will be relieved that from early April, no fault divorces will be introduced.
The new law will allow couples to separate without the need to place blame on one party.
The changes will make divorce easier and cheaper for both parties, with considerably less need to pay for lawyers.
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