Money Wellness
Daffodils on a sunny spring morning
category iconbills
category iconcost of living
calendar icon22 Dec 2023

Spring expected to bring relief to hard-pressed Brits

Lower bills and higher incomes are expected to coincide in spring bringing much needed relief to households struggling with cost-of-living pressures.

The Institute for Fiscal Studies told i news that increases in benefits, pensions and the minimum wage in April, alongside a predicted drop in energy bills, could reduce the burden for many following a tough winter.

Associate Director Jonathan Cribb said:

“The next couple of months might be a little tricky… [but] once we come to April many people will see some pay increase.

“We are still in a situation where wages and benefits are going to be lower than they were a couple of years ago but, in the short term, it should still be feeling a bit easier.”

Spring income increases

The minimum wage is set to rise to £11.44 an hour for workers aged 21 and above from April.

Benefits are due to increase by September’s inflation figure of 6.7%.

And pensions will go up by 8.5% after the government stuck to its triple-lock guarantee.

Cheaper energy bills

Meanwhile, energy experts Cornwall Insight predict the energy price cap will fall in April, meaning lower bills.

They expect a 14 per cent drop in the second quarter of 2024, so a typical household can expect to pay £1,660 a year – down £268 from first quarter bills of £1,928 a year.

Avatar of Rebecca Routledge

Rebecca Routledge

A qualified journalist for over 15 years with a background in financial services. Rebecca is Money Wellness’s consumer champion, helping you improve your financial wellbeing by providing information on everything from income maximisation to budgeting and saving tips.

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