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Households and businesses are facing increased costs on a number of items and services today.

Broadband, mobile and water bills are among those being hiked, along with corporation and council tax and energy charges for businesses.

Here, Sky News explains what is affected – and what you can do if you’re struggling.

Wages

The national minimum wage and the national living wage are both increasing. What’s the difference? The national minimum wage is a legal requirement – employers must pay you at least this much. The national living wage is higher and workers get it if they’re over 23.

The living wage is going up by 92p an hour to £10.42 an hour for workers aged 23 and over and the Resolution Foundation says this will be the biggest annual cash hike in the wage’s 24-year history.

Around 1.7 million workers earning up to 5p above the previous minimum wage will be most likely to notice the difference in their pay packets. Another five million low-paid workers will also benefit, as employers look to maintain differentials between pay bands.

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The new rates are:

  • The national living wage is increasing by 92p to £10.42
  • The rate for 21 and 22-year-olds is increasing by £1 to £10.18 an hour
  • The rate for 18-20-year-olds is going up 66p to £7.49
  • 16-17-year-olds will get an increase of 47p to £5.28, as will apprentices

The Trades Union Congress, however, says the increase in the minimum wage is not enough to keep up with inflation, which has been at around 10% in recent months.

But a rise in the minimum wage is not good news for everyone – businesses have to find more money to pay their workers and, as we’ll see later, they already have some pretty big price rises of their own to worry about.

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Corporation tax

Corporation tax is going up six percentage points today to 25% for business with profits exceeding £250,000.

Chancellor Jeremy Hunt has insisted that this will only affect 10% of businesses.

Tina McKenzie, policy chair at the Federation of Small Businesses (FSB), said: “This week sees the end of meaningful energy support for most small firms, alongside rising employment costs and increases to corporation tax.

“The combined pressures facing firms right now will greatly impact small businesses’ ability to weather the storm, and leaves them facing very tough choices.

“It’s crucial we keep a strong small business economy so there are jobs, competition and a strong offer for consumers.”

Alex Veitch, director of policy at the British Chambers of Commerce (BCC), said: “Changes on corporation tax, water bills and the minimum wage are all extra costs that businesses have known were coming. But when piled on top of energy bills they make it a difficult start to the new financial year.

“Firms knew before the budget that corporation tax would rise, and the super-deduction tax incentive was going, but its replacement does not appear as generous.

“The most recent BCC survey on investment found that only a fifth of firms were increasing investment and a similar number were reducing it.

“The government is unlikely to see the economic growth it desperately needs when so many businesses are still fighting to keep their heads above water.”

Energy bills

Businesses will see massive hikes in their energy bills because the government’s energy bill relief scheme comes to an end today.

The BCC has said that almost half of firms will be finding it difficult to afford to pay their bills from now on.

Mr Veitch said the organisation had suggested seven ways the government could help businesses get through this difficult time but “not one was acted upon”.

These included things such as easing the burden of VAT on energy bills and funding for improved business energy efficiency.

Households are also facing the prospect of paying more for their energy supply.

Most will have received £400 from the government in the form of discounts on energy bills from late last year – so about £67 a month. Well, your last instalment of that was in March – it’s over now.

There is some ongoing support for the most vulnerable, but the support will no longer be given to everyone regardless of circumstance.

The government’s energy price guarantee, brought in late last year as a sort of de-facto price cap, will remain at £2,500 for the typical household.

But because most of us have lost the £400 government support, we will effectively be paying more.

Standing charges – the daily rate you pay to have an energy supply (regardless of how much you use) – are also going up from today.

Broadband, mobile and water bills

The average household water bill is going up by £31 a year to £448 – a rise of 7.5% – for customers in England and Wales.

Mobile and broadband prices are expected to rise by between 14% and 17%. Citizens Advice said these could add an average of £90 a year to household bills. This is especially frustrating, as many telecoms suppliers regularly hike bills anyway – even if you’re in the middle of a contract.

Matthew Upton, director of policy at Citizens Advice, said: “We called on these firms to support their customers during this uniquely challenging time, but they didn’t listen. Instead, they’re pushing ahead with these mid-contract price rises.

“Ofcom should be holding these companies to account, but it has kicked the can down the road with a review that won’t land until the end of the year.

“When the regulator does act, it must deal with this once and for all by banning any future mid-contract price hikes.”

Listen and subscribe to The Ian King Business Podcast here.

Council tax

Most local authorities are hiking council tax by 5% from April.

This means that a band D home can expect to pay about an extra £100 a year, with the average bill topping £2,000 for the first time, according to government figures released last week.

Personal tax

The rate of personal tax hasn’t actually increased, but you’re still likely to end up paying more. Let me explain.

The government announced back in November that personal tax thresholds – the point at which a worker starts paying tax or starts paying tax at a higher rate – will be frozen in England, Wales and Northern Ireland until 2028.

Incomes generally rise – especially when workers are having to cope with high inflation and other living costs. But if the tax thresholds stay the same, more workers get dragged into the next tax band. This is what economists call fiscal drag and it’s what newspapers often call a stealth tax.

The Institute of Fiscal Studies says that the freezing of income tax and national insurance allowances and thresholds will cost most basic rate taxpayers an extra £500 and most higher rate taxpayers £1,000.

The Resolution Foundation says the size of the UK’s ‘stealth tax’ threshold freeze over six years has almost trebled to £25bn, compared to the £9bn forecast when it was originally announced in the 2021 budget, and later extended.

Anything else?

You mean that’s not enough?

Prescription charges are going up in England by 30p from today, taking the fee per item to £9.65.

We already know that the price of food is continuing to rise, and train fares were increased earlier this year. Mortgage rates have gone up – fine if you’re sitting on a fixed rate, but potentially very painful if you’re about to re-mortgage.

And renters aren’t safe either – if a landlord is having to pay more to own the house, you can bet they’re likely to recoup at least some of that from the occupants.

The average prices of unleaded, super unleaded and diesel are expected to fall, however. That’s right – fall! You might remember those crazy days of July when a litre of unleaded was averaging 191.43p – well, by 15 March, it was sitting at 147.28p.

And according to RAC Fuel Watch, the prices will fall further. Well, at least that’s one thing.

So what can you do if you’re struggling?

The most important thing is not to ignore the bills. They won’t get better or go away.

Contact the company you owe money to and they are likely to be able to help – they could arrange an instalment plan with you, reduce your repayments, or pause your repayments in some circumstances.

Contact your council and see if you’re eligible for any help from them.

If you’re in debt or just looking for some help, contact an organisation like the CAB or a debt advice service such a StepChange. This advice should be free.

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Urgent letter to home secretary over violence against women and girls strategy – as it omits child abuse

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Urgent letter to home secretary over violence against women and girls strategy - as it omits child abuse

Ten child protection organisations have written an urgent letter to the home secretary expressing concern about the omission of child sexual abuse from the government’s violence against women and girls strategy, following a Sky News report. 

Groups including the NSPCC, Barnardo’s and The Children’s Society wrote to Yvette Cooper to say that violence against women and girls (VAWG) and child sexual abuse are “inherently and deeply connected”, suggesting any “serious strategy” to address VAWG needs to focus on child sexual abuse and exploitation.

The letter comes after Sky News revealed an internal Home Office document, titled Our draft definition of VAWG, which said that child sexual abuse and exploitation is not “explicitly within the scope” of their strategy, due to be published in September.

Poppy Eyre when she was four years old
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Poppy Eyre when she was four years old

Responding to Sky News’ original report, Poppy Eyre, who was sexually abused and raped by her grandfather when she was four, said: “VAWG is – violence against women and girls. If you take child sexual abuse out of it, where are the girls?”

The Centre of Expertise on Child Sexual Abuse, which is funded by the Home Office and a signatory to the letter, estimates 500,000 children in England and Wales are sexually abused every year.

The NSPCC “welcome” the government’s pledge to halve VAWG in a decade, but is “worried that if they are going to fulfil this commitment, the strategy absolutely has to include clear deliverable objectives to combat child sexual abuse and exploitation too”, the head of policy, Anna Edmundson, told Sky News.

Poppy is a survivor of child sexual abuse
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Poppy is a survivor of child sexual abuse

She warned the government “will miss a golden opportunity” and the needs of thousands of girls will be “overlooked” if child sexual abuse and exploitation is not “at the heart of its flagship strategy”.

The government insists the VAWG programme will include action to tackle child sexual abuse, but says it also wants to create a distinctive plan to “ensure those crimes get the specialist response they demand”.

“My message to the government is that if you’re going to make child sexual abuse a separate thing, we need it now,” Poppy told Sky News.

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Rape Crisis, which is one of the largest organisations providing support to women in England and Wales, shares these concerns.

It wants plans to tackle child sexual abuse to be part of the strategy, and not to sit outside it.

“If a violence against women and girls strategy doesn’t include sexual violence towards girls, then it runs the risk of being a strategy for addressing some violence towards some females, but not all,” chief executive Ciara Bergman said.

A Home Office spokesperson said the government is “working tirelessly to tackle the appalling crimes of violence against women and girls and child sexual exploitation and abuse, as part of our Safer Streets mission”.

“We are already investing in new programmes and introducing landmark laws to overhaul the policing and criminal justice response to these crimes, as well as acting on the recommendations of Baroness Casey’s review into group-based Child Sexual Exploitation, and the Independent Inquiry into Child Sexual Abuse,” they added.

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Man and boy arrested on suspicion of arson after restaurant fire leaves two in critical condition

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Man and boy arrested on suspicion of arson after restaurant fire leaves two in critical condition

A 54-year-old man and a 15-year-old boy have been arrested on suspicion of arson with intent to endanger life after a restaurant fire in east London on Friday.

Three people were taken to hospital in a life-threatening condition after the fire at the Indian Aroma in Ilford.

Two remained in a critical condition on Sunday morning, according to the Metropolitan Police.

The restaurant suffered extensive damage in the blaze.

Two further victims are thought to have left the scene before officers arrived, Scotland Yard said.

Woodford Avenue from above. Pic: UK News and Pictures
Image:
Woodford Avenue from above. Pic: UK News and Pictures

Police are still trying to identify them.

CCTV footage seen by the PA news agency appears to show a group of people wearing face coverings walk into the restaurant and pour liquid on the floor.

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Seconds later, the inside of the restaurant is engulfed in flames.

“While we have made two arrests, our investigation continues at pace so we can piece together what happened on Friday evening,” said the Met Police’s DCI Mark Rogers.

“I know the community [is] concerned and shocked by this incident.

The moment the fire broke out.
Image:
The moment the fire broke out.

“I would urge anyone with any information or concerns to come forward and speak to police.”

Hospital porter Edward Thawe went to help after hearing screams from his nearby home.

He described the scene as “horrible” and “more than scary and the sort of thing that you don’t want to look at twice.”

He said: “I heard screaming and people saying they had called the police.”

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The 43-year-old said he saw a woman and a severely burned man who may have been customers.

Another witness, who did not want to be named, said he saw three “severely burned” people being doused by the emergency services and given oxygen.

“I can only imagine the pain they were going through,” he said.

On Saturday, the London Ambulance Service told Sky News: “We sent resources to the scene, including ambulance crews, an advanced paramedic, an incident response officer and paramedics from our hazardous area response team.

“We treated five people for burns and smoke inhalation. We took two patients to a major trauma centre and three others to local hospitals.”

The police investigation is continuing.

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Fast-track asylum appeals process to be introduced – as average time for decisions is more than one year

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Fast-track asylum appeals process to be introduced - as average time for decisions is more than one year

A new fast-track asylum appeals process will be introduced to speed up the process of deporting people without a right to remain in the UK, the home secretary has said.

As it currently takes, on average, more than a year to reach a decision on asylum appeals, the government plans to set up a new independent panel focused on asylum appeals to help reduce the backlog.

Home Secretary Yvette Cooper said “completely unacceptable” delays in the appeals process left failed asylum seekers in the system for years.

There are about 51,000 asylum appeals waiting to be heard.

The new independent body will use professionally-trained adjudicators, rather than relying on judges.

Ministers are introducing a new 24-week deadline for the first-tier tribunal to determine asylum appeals by those receiving accommodation support and appeals by foreign offenders.

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Police clash with protesters in Bristol

But they believe the current tribunal system, which covers a wide range of different cases, is still failing to ensure failed asylum seekers can be returned as swiftly as possible, nor can it accommodate a fast-track system for safe countries.

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It comes amid protests about the use of hotel accommodation for migrants.

The home secretary said the overhaul would result in a system which is “swift, fair and independent, with high standards in place”.

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She said: “We inherited an asylum system in complete chaos with a soaring backlog of asylum cases and a broken appeals system with thousands of people in the system for years on end.

“That is why we are taking practical steps to fix the foundations and restore control and order to the system.

“We are determined to substantially reduce the number of people in the asylum system as part of our plan to end asylum hotels.

“Already since the election, we have reduced the backlog of people waiting for initial decisions by 24% and increased failed asylum returns by 30%.

“But we cannot carry on with these completely unacceptable delays in appeals as a result of the system we have inherited which mean that failed asylum seekers stay in the system for years on end at huge cost to the taxpayer.”

Official figures released earlier this month showed a total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.

‘Waving immigrants through even faster will not fix the problem’

Chris Philp, the shadow home secretary, said: “I think this goes nowhere near far enough.

“The underlying rights, which allows most illegal immigrants to stay here, are not changing. Simply waving illegal immigrants through even faster to full housing and welfare rights will not fix the problem.”

Chris Philp
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Chris Philp

He added: “Immigration judges will still apply ever expanding common-sense defying definitions of ECHR rights to allow foreign criminals and illegal immigrants to stay here.”

But the Liberal Democrats have been more positive in their response, with shadow attorney general, Ben Maguire, saying: “A faster application process would mean that those with no right to be here are sent back swiftly and those who do have a valid claim can get a job, integrate and contribute to the community.”

Asked for his thoughts on the policy, immigration lawyer Harjap Singh Bhangal told Sky News that it “definitely sounds like some sort of solution”.

He pointed that the backlog of asylum seekers waiting for a decision is “huge”, around 51,000 people – and that during this time, they are not allowed to work.

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A new fast-track asylum appeals process will be introduced to speed up the process of deporting people without a right to remain in the UK.

He said: “The equivalent would be saying that imagine if A-level students this year sat the exams and were told ‘well, hold on, you’re not going to get your results for two years’ time. But in the meantime, you can’t go to university.’

“You’d have mayhem, and it’d be pandemonium in the street. You’d have broken people idle with nothing to do. Essentially, this is what’s happening to asylum seekers.”

He added that one of the reasons it takes so long for cases to be heard is because asylum seekers have to represent themselves in court, which can mean upwards of half a day is spent translating and explaining everything to them.

Mr Bhangal also said the immigration system is “broken”, because “they take ages to make a decision which could be made in one week”.

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