The state pension will rise by just £221 a year from Monday but tax and price hikes will drive up living costs by £3,000 in what has been dubbed ‘awful April’.
The Centre for Economics and Business Research has predicted that basic household spending will rise by £2,440 as food, fuel and energy prices rocket. On top of this, families face paying an extra £600 in tax and National Insurance hike, lifting the total to more than £3,000.
Tax hikes and price rises coming into force this month will place even more pressure on everybody’s wallets.
It can be hard to keep up, so to mark April 6, the first day of the new financial year, here are some of the most punishing changes coming your way. Remember, general rises in the price of food, petrol and other basics will come on top of this.
Those who retired before April 6, 2016 on the old basic state pension will get a pay rise of £4.25 a week to £141.85. That’s a rise of just £221 a year but many will get even less, depending on their National Insurance contributions.
Those who retired after that date on the new State Pension will get £5.55 extra at £185.15.
Chancellor Rishi Sunak’s decision to suspend the triple lock this year will cost pensioners dear. The state pension will fall in real terms, with inflation expected to peak at 8.7 percent later this year.