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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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UK weather: Scottish hamlet reaches -18C in coldest January night in 15 years

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UK weather: Scottish hamlet reaches -18C in coldest January night in 15 years

Temperatures in a hamlet in northern Scotland fell to -18.7C (-1.66F) overnight – the UK’s coldest January night in 15 years, the Met Office has said.

Altnaharra, in the northern region of the Highlands, reached the lowest temperature while nearby Kinbrace reached -17.9C (-0.22F).

It is the coldest January overnight temperature since 2010, when temperatures dropped below -15C several times at locations across the UK, including -22.3C (-8.14F) on 8 January in Altnaharra.

Forecasters had previously said there was a very small probability it could reach -19C.

A Highland cow grazes in a snow-covered field near Shotts, North Lanarkshire. Temperatures will continue to fall over the coming days, with the mercury potentially reaching minus 20C in northern parts of the UK on Friday night. Weather warnings for ice are in place across the majority of Wales and Northern Ireland, as well as large parts of the east of England. Picture date: Friday January 10, 2025.
Image:
A Highland cow grazing near Shotts, North Lanarkshire. Pic: PA

Met Office meteorologist Alex Deakin said: “Friday night into Saturday morning may well be the nadir of this current cold spell.”

Temperatures for large parts of the UK are set to fall again as the cold weather continues.

St Andrew's church, Kiln Pit in Durham Pic: PA
Image:
St Andrew’s church at Kiln Pit in Durham. Pic: PA

Met Office meteorologist Zoe Hutin said: “We’ve still got tonight to come, and tomorrow (Saturday) night could also be chilly as well.

More on Uk Weather

“Temperatures for tomorrow night, it will be mainly eastern parts that see temperatures dropping widely below freezing, so East Anglia, the northeast of England, northern and eastern Scotland as well.

“So another chilly night to come on Saturday, but then as we go into Sunday and into Monday, then we can start to expect temperatures to recover somewhat.

“I won’t rule out the risk of seeing something around or just below freezing again on Sunday night into Monday, but it won’t be quite so dramatic as the temperatures that we’re going to experience as we go overnight tonight.”

Ugo Sassi from Cambridge skates on a frozen flooded field in Upware, Cambridgeshire. The Cambridgeshire Fens were the birthplace of British speed skating and require four nights of frost, with a temperature of -4 or colder and little or no thawing during the days in between, to make ice strong enough to skate on. Temperatures will continue to fall over the coming days, with the mercury potentially reaching minus 20C in northern parts of the UK on Friday night. Weather warnings for ice are in pla
Image:
Skating on a frozen flooded field in Upware, Cambridgeshire. Pic: PA

On Monday, temperatures are expected to be more in line with the seasonal norm, at about 7C to 8C.

A family walk across Hothfield Common in frosty conditions near Ashford in Kent.
Pic: PA
Image:
A family walk across Hothfield Common in frosty conditions near Ashford in Kent. Pic: PA

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The freezing conditions have led to travel disruption, with Manchester Airport closing both its runways on Thursday morning because of “significant levels of snow”. They were later reopened.

Transport for Wales closed some railway lines because of damage to tracks.

Hundreds of schools in Scotland and about 90 in Wales were shut on Thursday.

Meanwhile, staff and customers at a pub thought to be Britain’s highest were finally able to leave on Thursday after being snowed in.

The Tan Hill Inn in Richmond, North Yorkshire, is 1,732 feet (528m) above sea level.

Six staff and 23 visitors were stuck, the pub said on Facebook.

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Government contract ends for controversial asylum barge Bibby Stockholm

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Government contract ends for controversial asylum barge Bibby Stockholm

The government contract for the controversial asylum barge in Dorset has ended.

The last asylum seekers are believed to have left Bibby Stockholm at the end of November after Labour said it would have cost more than £20m to run in 2025.

Its closure this month was expected, and on Friday the management firm and the Home Office confirmed to Sky News the contract had now expired.

It’s currently unclear when Bibby Stockholm will leave Portland and what it will be used for next.

The Conservative government started using the vessel in August 2023.

It said putting nearly 500 men on board while they waited for an asylum decision was cheaper than paying for hotel rooms.

However, it was controversial from the start and sparked legal challenges and protests.

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Days after the first group boarded there was an outbreak of Legionella bacteria in the water system and it had to be evacuated for two months.

In December 2023, an Albanian asylum seeker, Leonard Farruku, died on board.

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A Home Office spokesperson said the government was determined to reform the asylum system to make it operate “swiftly, firmly and fairly”.

“This includes our accommodation sites, as we continue to identify a range of options to reduce the use of hotels,” the new statement added.

“We are already closing some hotels and will continue to engage with local authorities and key stakeholders as part of this process.”

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How is your local NHS coping under winter pressures?

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How is your local NHS coping under winter pressures?

Pressure on hospitals is particularly high this winter, with more than a dozen declaring critical incidents in recent days.

Hospitals struggle every winter with additional pressures due to the impact of cold weather, but the early arrival of flu this season and high volume of cases meant Christmas and New Year’s weeks were even busier than usual.

There are currently at least 20 hospitals that have declared critical incidents in England, although this is a fast-moving picture, and some trusts will go into critical incident for as little as half an hour.

The latest NHS winter situation reports give a more detailed look at the level of pressure experienced by individual trusts, including those with the worst ambulance handover delays and highest levels of flu patients.

Ambulance handover delays

When a patient arrives at a hospital in an ambulance, clinical guidelines suggest that it should take no longer than 15 minutes to transfer them into emergency care.

It is now common for handovers to regularly exceed this timeframe, however, when emergency departments are overcrowded and lack the capacity to keep up with new patient arrivals.

This is risky for patients because it delays their assessment and treatment by clinicians, and also reduces the availability of ambulances to respond to new incidents.

The trust with the longest delays was University Hospitals Plymouth, with an average handover time of three hours and 33 minutes over the week – two hours and 40 minutes longer than the average for England. It also recorded the longest average handover times for a single day, at five hours and 14 minutes on New Year’s Day.

Use the table below to search for local ambulance handover times:

On 7 January, University Hospitals Plymouth declared a critical incident at Derriford Hospital due to “significant and rising demand for hospital care”, though this has since been stood down.

The Shrewsbury and Telford Hospital Trust had an average ambulance handover time of three hours and 15 minutes, increasing by more than an hour from one hour and 51 minutes the week before.

In Royal Cornwall Hospitals NHS Trust, 83% of handovers took more than 30 minutes, the highest share among areas dealing with more than five ambulance arrivals per day.

This area also recently declared and then stood down a critical incident.

In total across England, 43 trusts out of 127 had average handover times of more than an hour, while nine areas had average handover times of more than two hours.

Flu

This winter’s flu wave arrived earlier than usual and has hit health services hard.

Over New Year’s week, there were 5,407 flu patients in hospitals in England on average each day, more than three times higher than during the same week last year and increasing by 20% from the week before.

The worst impacted trusts were Northumbria Healthcare and University Hospitals Birmingham, with 15% and 13% of all available beds occupied by flu patients respectively in the latest week.

Wirral University Teaching Hospital NHS Foundation Trust had among the biggest increase in flu patients from the previous week, more than doubling from 18 to 42 patients per day on average.

Use the table below to search for local flu hospitalisations:

There are some indications that flu activity may have now peaked, with national flu surveillance showing a decrease in positive flu tests in the latest week, though activity remains at high levels.

Bed occupancy

Current NHS guidance is that a maximum of 92% of hospital beds should be occupied to reduce negative risks associated with overfilled beds.

These risks include the impact on patient flow resulting from it being more difficult to find beds for patients, and negative impacts on performance and waiting times, as well as being linked to increased infection rates.

In the week to 5 January, 92.8% of 102,546 open hospital beds were available each day on average, not far off the recommended level.

However, bed occupancy was very high in some trusts, with more than 95% of beds occupied in 43 trusts on average over the week.

The trust with the highest rate of bed occupancy was Wye Valley NHS Trust, with 99.9% of 332 beds occupied on average throughout the week.

There was only one day when beds weren’t fully occupied, on 3 January, when two beds of 322 were available.

Use the table below to search for local bed occupancy:

Kettering General Hospital NHS Trust recorded bed occupancy of 98.5% over the week. This trust declared a critical incident on 8 January.

Part of the problem for bed availability is prolonged hospital stays – also known as bed-blocking.

This is often linked to pressures in other parts of the health and social care system, for example when patients can’t be discharged to appropriate social care providers even though they are ready to leave hospital.

Just under half of beds occupied by patients in English hospitals last week were occupied by long-stay patients who had been there for seven or more days.

In seven trusts, at least three in five beds were occupied by long-stay patients, while in Barking, Havering and Redbridge University Hospitals NHS Trust the figure was more than four in five beds.


The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.

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