Minimum wage to rise with effect April 2020
The national living wage (highest rate of the national minimum wage paid to over 25s) was increased from £8.21 to £8.72 an hour in April.
New hourly rates:
Over 25s £8.72
21 – 24 £8.20
18 – 20 £6.45
Under 18s £4.55
Working-age benefits increase by 1.7%
From April 2020, many working-age benefits will rise by 1.7%, in line with inflation.
Benefits affected by the increase include:
Employment and Support Allowance
Housing Benefit (Local Housing Allowance)
Child Tax Credits
Working Tax Credit
Bank Overdraft Rates
Please note the following change may be delayed due to the Coronavirus – check with your individual bank
New rules by the Financial Conduct Authority come into force from 6 April requiring banks and building societies to charge a simple annual interest rate on all overdrafts and to abolish fixed fees. Many banking groups have announced that they will be setting their rate above 35%. Most customers, mainly those with an unarranged overdraft, will be better off under the new rates, but some with an arranged overdraft facility will be worse off.
Prescription charge price increase
The cost of an NHS prescription in England is increasing to £9.15 from 1 April 2020.
A three month pre-payment prescription will become £29.65 and £105.90 for 12 months.
Contactless Payment limit to rise
Use of contactless payments has been encouraged during the Coronavirus pandemic. It has been announced that the spending limit for contactless card payments will be increased from April to £45. It was £30.
Increase in cost of TV licences from April 2020
The cost of a television licence will rise in line with inflation with effect 1 April 2020. The annual television licence fee will increase from £154.50 to £157.50 whilst the cost of an annual black and white licence will rise from £52 to £53.
Ofgem reduces energy price caps with effect April 2020
The default price cap will become £1,162, from £1,179 for the period April 2020 – September 2020, whilst the pre-payment meter cap will be £1,200, from £1,217. The cap applies to tariffs for all customers on standard variable and default energy tariffs.
Cost of stamps to rise
From 23rd March 2020, the cost of a first class stamp will rise by 6p to 76p and a second class stamp will rise by 4p to 65p.