Headlines: A Glimpse into UK's Latest News

1. Sharp rise in household bills despite falling energy costs

Consumers are bracing themselves for significant increases in household expenditure, from water bills to broadband fees. Despite some easing in inflation, the increased costs of numerous bills and taxes will further exacerbate financial pressure on households.

Starting from Monday, the prices of telephone, broadband, and water will be raised, while consumers will also face increases in television license fees, vehicle taxes, dental fees, and local taxes.

Regarding water bills, consumers will see an average increase of 6%, equivalent to an annual increase of ￡27, leading to an average annual total of ￡473.? Depending on the region, Wessex Water users will likely bear the highest costs, reaching ￡548 per year, an increase of ￡59 from last year. Meanwhile, customers of Thames Water, serving 16 million customers in London and the southeast of England, will see their bills rise by ￡15, with an average annual payment of ￡471 per customer.

Additionally, mobile phone, telephone and broadband suppliers plan to increase bills for users without fixed-rate contracts by up to 8.8% in April.? According to analysis by uSwitch, Virgin Media is set to achieve the highest growth of 8.8% in broadband and mobile business, while other major suppliers including Plusnet, Vodafone, EE, Three, and BT will raise prices by 7.9%. USwitch estimates that this will result in consumers paying an average of ￡27.19 more per month for broadband and ￡24.23 more for mobile services.

2. Nearly 2000 social housing buildings affected by cladding

According to government figures, the external walls of nearly 2,000 social welfare housing buildings have ‘life-critical’ issues.

The latest data release shows that assessment results indicate there are ‘life-critical fire safety defects’ related to external wall materials in 1,911 buildings that exceed 11 meters in height. ?Nearly 1,500 social housing providers have submitted fire safety assessments for 16,776 buildings exceeding 11 meters in height to the social housing regulator. This means that over one-tenth of the buildings assessed so far have been found to have defects requiring remediation.

These figures highlight the severity of building safety issues in British residential areas, which first came to light after the tragic Grenfell Tower fire in London in June 2017, resulting in 72 fatalities. Combustible cladding was identified as a major factor in the rapid spread of the fire, and the tower was owned by the Royal Borough of Kensington and Chelsea.

Another set of government figures shows that safety hazards also exist in the external walls of nearly 3,972 private and social housing buildings exceeding 11 meters in height. The latest social housing data indicates that among the buildings found to have issues, only 181 (about 9%) have completed works to make the buildings safer, whilst construction has commenced on 543 buildings (about 28%). This means that 638 buildings (about 33%) have not yet begun works, and plans for remediation have not been formulated for 549 buildings (about 29%).

3. Cacao crops crisis results in soaring easter egg prices

Every Easter, British consumers spend over ￡1 billion on food, drinks, gifts, entertainment, and approximately 80 million chocolate eggs, averaging over ￡50 per person. However, this year, consumers are paying higher prices than usual – chocolate prices have risen by over 12.6% since last Easter, more than double the increase in supermarket food and drink prices.

The price hike mainly affects manufacturers purchasing cocoa products, as nearly all mass-produced chocolate products use cocoa. However, even artisanal chocolate makers in the UK are feeling the ripple effects, as many were already paying higher prices for high-quality and ethically sourced ingredients.

The price of chocolate's main ingredient, cocoa beans, has been steadily rising throughout the year, surpassing $10,000 per ton on Valentine's Day and Easter. This means that currently, cocoa beans are more valuable than several precious metals, and the value is increasing faster than Bitcoin.

4. Millions of smart meters found faulty

Government figures show that nearly 4 million smart meters in households and businesses are experiencing faults, posing further challenges to the adoption of smart meters.

According to the UK Department for Business, Energy & Industrial Strategy and Net Zero Network, as of the end of last year, there were 3.98 million meters not functioning properly in the UK. Initial reports indicated that by June 2023, there were 2.7 million meter failures, but due to errors in reporting by some suppliers, the June figure was subsequently revised to 4.31 million.

Smart meters are seen as a crucial component of the transition to net-zero energy, allowing homeowners to track their energy usage more easily and take measures to reduce consumption. When operating in ‘smart mode’, these meters send customers' real-time data to suppliers.

The latest data has raised concerns that consumers may be overcharged for gas and electricity bills, prompting the government to write to regulators urging action against energy suppliers not supporting customers and failing to fulfil their legal obligations.

5. Want to grab a last-minute ISA? Act fast!

April 5th marks the end of the tax year, and also the deadline for using this year's ￡20,000 ISA (Individual Savings Account) allowance.

ISAs allow you to save or invest without having to pay tax on the income you earn. You don't need to pay tax on interest, income, or capital gains earned through ISA investments in a cash ISA account.

In addition to ISAs, basic rate taxpayers can also enjoy up to ￡1,000 of tax-free interest income under the Personal Savings Allowance (PSA). Higher-rate taxpayers can receive ￡500 of tax-free interest income under the PSA. Currently, many savings rates are above 5%, so ￡25,000 of interest would typically exceed the ￡1,000 allowance.

We highly recommend that you check if you have utilised your ISA allowance for this year. If you manage your ISA online, your provider usually displays your remaining allowance when you log in. If you’re trying to open an account, remember that everything needs to be processed before midnight on the 5th April, otherwise you will have missed the deadline!