April marks a significant period for personal finances with various changes taking effect. As the tax year wraps up, key allowances like ISAs and pension contributions are on the verge of resetting. However, this month also brings a wave of price hikes across different sectors, impacting households.
Employment-wise, minimum wage rates are set to increase in April. For individuals aged 21 and above, the minimum hourly wage will rise from £12.21 to £12.71. Similarly, those aged 18 to 20 will see a bump from £10 to £10.85 per hour, while under 18s and apprentices will witness an increase from £7.55 to £8 per hour.
Residents in England can expect a rise in council tax bills with most local authorities opting for a 5% hike. Some councils have been granted permission for larger increases, pushing the average band D council tax bill for 2026/27 to £2,392.
Other notable increases include the TV licence fee climbing from £174.50 to £180, water bills in England and Wales going up by an average of £33 annually, and the standard road tax rate for post-April 2017 registered vehicles increasing to £200.
Furthermore, mobile and broadband providers are upping their charges by £1 to £4 per month, NHS dental charges in England are set to rise, and air passenger duty will surge by 15% from April 1. Energy consumers can expect a slight relief as the Ofgem energy price cap decreases to £1,641 for typical dual fuel households, before a projected rise later in the year.
As the tax year comes to a close on April 5, it’s crucial to utilize remaining tax allowances such as the £20,000 ISA limit and the £60,000 pension contribution cap. Additionally, changes like the implementation of Making Tax Digital for sole traders and landlords earning above £50,000 and alterations to Inheritance Tax reliefs are set to kick in.
Welfare payments are also on the rise, with a 3.8% increase in benefits like Child Benefit and Personal Independence Allowance. Notably, the state pension will see a 4.8% boost under the triple lock promise.
Moreover, the two-child benefit cap will be removed, and postal charges will go up, with first-class stamps increasing to £1.80 and second-class stamps to 91p from April 7. Stay informed about these financial shifts to navigate your finances effectively.