Council tax to hit £2,000 a year in latest cost of living hit

Telecom companies are raising broadband costs by around 9.3%, while millions of customers will see their mobile phone bills soar by 11.7%.

The dramatic increases, which are partly linked to inflation, have led to calls on telecommunications giants to support families by scrapping price increases above inflation.

The increases mean that a family with two adults earning the median pre-tax income of £26,000 would see their annual costs rise by £873. That’s before other costs, such as fuel, grocery, train, and childcare bills, are factored in.

The National Insurance increase, which comes into effect on April 6, will take the monthly losses of a typical household to £95.30. This is before the threshold at which payments begin to increase in July, offsetting the increases.

The Chancellor has introduced a number of policies to support families through the cost of living crisis, but he has been accused of not going far enough. In March he promised to ‘stand with the British people’ when he announced a £150 rebate on council tax bills for most households living in property in AD council tax brackets.

However, a Telegraph analysis has found that one in three households will see their government reimbursement halved by recently confirmed council tax increases.

England’s ‘Band D’ council tax – the standard measure of the tax – will rise 3.5% to £1,966 this year, from £1,898 – a jump of £67, the Department for Leveling Up has said , Housing & Communities.