Hackney residents can expect many of their annual bills to increase from this April as rampant inflation sees the countrywide cost-of-living crisis continue. It can be hard to keep track of what’s going up, and when, so we’ve broken down the main additional expenses you can expect to start paying soon.
Gas & Electric: £633
Energy bills – this is the big one. Ofgem recently announced that the energy price cap will be lifted by 54 per cent from April, to as much as £693 pounds more. Based on the price of energy bills in Hackney many residents can expect to bear the brunt of this with an average increase of £633 per household this year.
However, you will need to contact your energy provider to find out exactly how much more you’ll be paying. The rise will apply to most types of energy deals except fixed tariffs. If you’re on one of these, your bills shouldn’t rise at least until your current contract expires – at which point they are almost certain to.
To help with the rise in energy prices, Chancellor Rishi Sunak has announced a one-off £200 ‘discount’ on bills for all households from October 2022. This will be repaid in £40 instalments over five years.
Council Tax: £31 – £95
Hackney Council announced in its recent budget that council tax will also be going up this year, by 2.99 per cent. How much more you pay will depend on what band your property falls under.
By band:
A – £31.94, B – £37.26, C – £42.58, D – £47.90, E – £58.55, F – £69.19, G – £77.96, H – £95.81.
The Chancellor has also announced a one-off £150 council tax rebate for April, which won’t have to be repaid. This will only apply to those living in properties band A – D. If you pay your council tax by direct debit, you should see this cash go directly into your bank account from April.
National Insurance Contributions – £26 – £464
From April, National Insurance contributions will increase by 1.25 percentage points for the 22/23 tax year, to 13.25 percent. This is still only taken away from earnings between £9568 to £50,284 a year. Someone on the average Hackney income, around £30,000, can expect to pay £214 extra this year. However, how much more you pay depends on your income:
Increase from last year:
£15,000 – £26; £20,000 – £89; £25,000 – £151; £30,000 – £214; £40,000 – £339; £50,000 – £464.
Food – £129 – £518
Since March last year, the Consumer Price Index has risen 5.4 per cent, the highest increase in nearly 30 years. In real terms, this means the average price of a basket of groceries is now 5.4 per cent more expensive than it was a year ago. Given the average monthly cost of groceries per person in London (£200), you can expect to pay this much more on your groceries over the next year:
By household:
One person: £129.60; Two people: £259.20; Three people: £388.80; Four people: £518.40.
Petrol
And for commuters, there’s more bad news. The price of petrol is up by 20.8 per cent since last year, from 123.1 pence per litre to 148.7. How much this affects you will of course depend on how much you drive, if at all.
Total yearly increase: £819.60 – £1710.40 (and for drivers: maybe more)
READ MORE: Hackney Council’s 2022/23 budget explained
