Every rise in the price of the bill in 2021 – how much more will YOU pay this year | Personal Finances | Finance

Energy bills will increase by as much as 30% in 2022, but that’s not the only payment you’ll see increase this year. Municipal taxes and national insurance contributions will soon increase as the government struggles to pay for the devastating financial impact the coronavirus pandemic has had on the UK economy.

Energy

The government has been criticized for its handling of the energy crisis.

Around 15 million households have seen their energy bills increase by 12% since the beginning of the month.

Indeed, UK energy regulator Ofgem has been forced to raise the energy price cap to cover global gas price hikes.

From October 1, the energy price cap was raised to £ 1,277 per year.

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national insurance

National insurance rates will be increased by 1.25% from April 2022, affecting around 25 million working Britons, to fund the Conservatives’ ambitious social protection plans.

Here is how much you will have to pay in addition from April 2022:

Britons earning £ 10,000 a year are currently paying £ 52, which means they will pay £ 5 more each year.

If you earn £ 20,000, your bill will drop from £ 1,251 this year to £ 1,381 next year (an increase of £ 130 per year).

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Those making £ 30,000 a year are currently paying £ 2,452 – this will rise to £ 2,707 in 2022, which is an increase of £ 255.

If you have an annual salary of £ 40,000, you will currently pay £ 3,652 per year in national insurance contributions.

But that bill will increase by an additional £ 380 in 2022, bringing your total bill to £ 4,032.

Housing tax

Many Britons have faced costly increases in their municipal tax bills for 2021-2022.

These have been increased up to 7.5% from April 1, 2021, for parts of the UK.

Who? found that every local authority in England and Wales has increased their municipal tax bills for 2021 – 2022.

Although the government has recommended a cap of no more than a five percent increase, many local councils have defied that recommendation.

A whopping 83 councils have raised their rates by more than five percent, but overall the average D-Band council tax bill has jumped 4.4 percent in England this year.

Fortunately, 232 councils in England have chosen not to increase their municipal tax bills by the five percent cap, while the Scots have seen no price increase on their municipal tax bills.

However, experts warn that municipal tax bills will also have to rise further to pay for the government’s current spending plans.

The Institute for Fiscal Studies (IFS) said municipal tax bills will need to increase by at least 3.6% per year to ensure local services are functioning at pre-pandemic levels.

If these predictions are correct, municipal tax bills are expected to increase by at least £ 160 by 2024 to 2025.

But the IFS warns that municipal tax bills could easily increase by five percent per year, which would cause household bills to rise an additional £ 220 per year by 2024 to 2025.

Clive Betts, Labor chairman of the housing, communities and local government committee, told the Telegraph: “Council tax bills will have to rise as there is no other way for councils to pay for social care.

He described the potential tax hikes as a “double whammy” because “the people who are going to be hardest hit by municipal tax increases are those hardest hit by increases in national insurance.”

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Nancy Owens

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