April to be 'Labour's most painful month in office' as millions hit by skyrocketing bills

Millions of struggling families are set to be plunged into financial meltdown this week. Household bills are forecast to rise by a collective £6.85bn as revised rate and utility demands land on doormats.

The fresh misery comes amid a strangulating cost-of-living crisis, with 62% of Brits now worried they cannot cover rising costs, and consumer confidence in the economy plunges to its lowest level since 2022. Shadow Chancellor Sir Mel Stride told the Express: "April is shaping up to be Labour's most painful month in office."

From Wednesday, a raft of new inflation-busting charges will pile further pressure on squeezed households and businesses feeling the effects of £66bn of tax rises in the two years since Labour took office. Council tax - the annual charge for services including bin collections and road maintenance - will rocket by at least 5%, or more than £100 a year.

Water bills, car taxes, mobile phone and broadband costs, and the price of a TV licence, are also increasing, while the start of the new tax year on April 6 will see farms and family businesses clobbered because of new inheritance tax arrangements.

Rocketing oil prices due to the ongoing Middle East conflict have already led to widespread "profiteering at the petrol pumps" and are likely to push up the energy price cap later in the year as economic agony shows no sign of ending.

Sir Mel said: "Families across Britain are about to be hit with an April Fool's sting - except there's nothing remotely funny about it.

"Under Rachel Reeves, the economy is heading in the wrong direction and fast. Inflation is much higher than it was at the election, unemployment is climbing, and borrowing is spiralling out of control. Families are being hammered at every turn."

The widely-felt pessimism is reflected in the latest analysis from Which? with consumer confidence in the future of the UK economy nosedived by 13 points to -56 in the month to March 13.

Two-thirds expect the picture to worsen over the next year, with just 12% thinking it will improve.

Confidence in the future of household finances has also hit its lowest level since April last year.

Unparalleled financial pressures are forcing 14 million households to make at least one adjustment to cover essential spending, including dipping into savings or borrowing.

Which? spokeswoman Sue Davies said: "Our research shows a concerning shift in consumer sentiment, with confidence in the economy hitting its lowest point in years as households face a daunting combination of rising prices and global instability. Millions are now being forced to dip into savings or sell possessions just to keep up with the cost of everyday essentials."

Separate analysis by Uswitch.com reveals water bills are set to rise an average of 5.4% or £32.40 per household across England and Wales.

Council tax hikes will add an extra £109 to an average Band D property in England, while the cost of a TV licence will jump to £180.

Families will also be clobbered by broadband price rises, even if they are mid-contract, adding an average £39.60 to annual costs while most mobile providers will increase charges by £27.60.

Taken together, experts estimate annual costs per household will soar by at least £214.10 overnight.

From April 1 to June 30, Ofgem's annualised price cap - which limits the maximum unit price of gas and electricity - for a typical dual-fuel household paying by direct debit is £1,641 a year.

But some fear the cap could rise to more than £1,900 through the autumn and winter as a direct result of continuing chaos in the Middle East.

Utility bills have climbed 15% since September 2024, leaving many struggling to pay, with National Energy Action estimating around six million households remain in fuel poverty.

Costlier wholesale energy costs - already leading to a spike in fuel prices - are derailing efforts to lower inflation to the Bank of England's 2% target.

The Iran conflict is likely to keep energy and petrol prices elevated for a long time, and if the war escalates, inflation could rise even further.

Howard Cox, founder of lobby group Fair Fuel UK, said: "What we are seeing now is that oil is 60% more than it was at the beginning of the month, and therefore we are going to be hit with rocketing pump prices. The impact on the economy, inflation, growth, GDP, jobs and business investment is going to be catastrophic."

Air Passenger Duty - a tax charged to airlines but passed directly to passengers in ticket prices - is also rising on Wednesday. Economy passengers on short-haul flights will pay £2 more per ticket, with long-haul travellers in economy paying £12 extra.

Remote Gaming Duty - the tax paid by online casinos and slot platforms on their profits - is nearly doubling from 21% to 40%, with operators expected to pass up the bulk of this cost to consumers.

And from April 6, longstanding exemptions that allowed farmers and family business owners to pass on assets entirely free of inheritance tax will be dramatically cut.

Previously, qualifying agricultural and business assets could be passed on with no inheritance tax bill. Now only the first £1m in assets qualifies for full relief, with anything above that taxed at 20%. For a family farm worth £2 million, that equates to a £200,000 tax bill.

The Treasury said: "We have the right economic plan for a more volatile world, taking a responsible approach to supporting working people in the national interest.

"We're taking £150 off energy bills, fuel duty is frozen until September, and we're providing targeted support for those facing higher heating oil costs. We're also acting to protect people from unfair price rises if they occur, bringing down food prices at the till, as well as freezing rail fares and prescription fees."