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National Price Hikes Day 2018

National Price Hike Day falls on Easter Sunday this year - the day you'll be hit with a raft of inflation busting price hikes so many of your day to day activities will cost you more. Each household will have to find an over an extra £100 (1) over the next 12 months to cover the increased costs, a total of over £2 billion (1) across the UK.

Price hikes:

  • First-class stamps have risen (2) from 65p to 67p and the price of a second-class stamp has also gone up by 2p to 58p. Posting a small parcel now costs 5p more up from £3.40 to £3.45.

  • Average council tax bills are set to go up by as much as 5.1% across the UK which is an increase of £81 a year.

  • Water bills will increase by £9 (2%) to £405 for the average household.

  • Prescription costs will also go up by 20p from £8.60 to £8.80 (2.32%).

  • The NHS dental charge payable for a check-up will increase by £1 (4.85%) from £20.60 to £21.60. The dental charge for a band 2 course of treatment will increase by £2.80 from £56.30 to £59.10 (almost 5%). The charge for a band 3 course of treatment will increase by £12.20 from £244.30 to £256.50(5%). (3)

  • TV licence costs will also go up by £3.50 from £147 to £150.50 1st April

  • Air Passenger Duty on long haul flights (over 2,000 miles) is set to increase by 4%.

  • NHS wig and fabric charges - the cost of NHS wigs and fabric supports are rising by about 1.5%.

Communications suppliers crank up costs;

  • Three price rise on monthly mobile contracts - Three customers will see their bills go up by 4% this year, the same as the January Retail Prices Index measurement of inflation4

  • EE bills will rise by 4.1% across the board in line with January's RPI. (4)

  • O2 bills will also increase by 4% in line with February RPI. (4)

  • Vodafone customers that took out a monthly plan on or after the 5th May 2016 will see a bill hike of 3.6% in line with March RPI. (4)

  • Sky Broadband customers will see line rental costs rise from £17.40 per month to £18.99 (9.1%) (4)

  • Post Office Broadband customer will see increases - the Essential package will rise from £25.00 a month to £27.00 a month (8%) (4)

Prices are also heating up for energy customers

  • EoN are removing their dual fuel and paperless discount resulting in an average price hike of 2.7% for its dual fuel customers meaning an annual bill hike of £30 on average. 19th April (5)

  • ENGIE bills will go up by 5.9%, leaving customers on a standard variable tariff £58 out of pocket on average. 4th April (5)

  • Bulb bills will crank up prices across its standard rates by 2.8%, leaving those with a dual fuel tariff typically £24 worse off. 28th April (5)

  • iSupply jumped on the bandwagon last month with an average price hike of 7.5% for its dual fuel customers meaning an annual bill hike of £76 on average. 1st March (5)

"As you tuck into your Easter eggs this year, a raft of everyday things will cost you more from stamps to your TV licence. Your wallet could be hit left, right and centre on April 1st. These price hikes may appear small and 'nothing to worry about' but add them all together and they could cost you around £100 extra a year.

"You won't be able to avoid some of the increases, but you can certainly take control when it comes to managing the cost of your energy, phone and broadband. The more money you can keep in your pocket the better. Check you're on the best rates and switch providers to get a better deal if you're out of contract. Look at where you might be able to cut small everyday costs too like switching your morning coffee habit to taking a flask into work with you instead. Not only will you save yourself a small fortune but you'll be cutting down the amount of plastic you use too."

(1) £.109.25 (rounded up to £1000) per year is calculated by taking a snapshot of key household outgoings, calculating the sum of price rises. £2,075,750,000 was derived by multiplying £109.25 by 19m. In 2017 there were 19m families in the UK (ONS)

Calculation

-IncreaseCalculated increase per yrNeed to know
1st Class stamps 2p per letter3%35pBased on 5 letters and 5 parcels
Council tax5.1%£81Based on average Band D
Water bills2%£9Average bill per year was £395 in 2017
NHS Dental costs5%£2.8Based on Band 2 charge
Air Passenger Duty4%£12Based on 2 adults flying longhaul once per year
TV Licence2.3%£3.50Per household license
Prescription costs2.3%60pBased on 3x prescriptions per year
Total-£109.25

(2) The cost of stamps increased on the 26th March 2018. (3) Each band of dental treatment includes the following; * Band 1 is check-ups, scale and polish, diagnosis and treatment planning, marginal corrections of fillings, braces etc. * Band 2 is additional treatment, such as fillings, root canal treatment and removing teeth. * Band 3 is more complex procedures, such as crowns, dentures and bridges. (4) The date at which these price hikes take effect depends on the billing date for each individual customer but most will land between March and April. (5) Data taken from https://www.uswitch.com/media-centre/2018/03/uswitch-comments-latest-energy-price-rise/

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