Water Bills and Stamp Duty

This BBC podcast is supported by ads outside the UK. At the BBC, we go further so you see clearer. Through frontline reporting, global stories and local insights, we bring you closer to the world's news as it happens. from the BBC. Find out more at bbc.com slash join

Hello, welcome to this Moneybox podcast. Train fares in England and Wales will rise tomorrow, but so will the cost of most rail cards that give you a third off the price. The £6 a week standing charge to be connected to an electricity and gas supply will not be scrapped, says the regulator. It's consulting on other choices. And time is running out for people to buy a home before stamp duty rises on April. the first, but would it be cheaper to buy later?

But first, one month from today, water bills for millions of households in England and Wales will go up by record amounts. Exactly how much more you'll pay will depend where you live, but on average, bills will increase by more than £10 a month. meaning a total average cost of over £600 a year. There's no choice, of course, over which firm supplies your water. It just depends where you live. So what can you do to cut your bill? Moneybox reporter Dan Whitworth went to North Wales, where...

he talked to one man who'd found a way. With its rivers, lakes and reservoirs framed by the most stunning scenery, one thing North Wales is not short of is water. And from reservoirs up here in the mountains, it's just a short journey for that same water down into people's homes. And there it is. The other end from the reservoir. Yeah.

My name is Geoff Hook. I'm 81 years old and I live in Trevorrow. And that's in gorgeous Snowdonia National Park. That's absolutely correct. My main pension is my state pension. And your total income roughly of a year is about how much? About £16,000. So you've got your bill here. Yes, this is the current one, which starts for April. from £96 a month to £126 a month. Over the course of the year, that would mean you'd be paying more than £1,500 just for water and sewage.

That would have been a massive impact on your personal finances. I surrender us. Well, council tax, that's almost £200 a month. At the moment... Food and shopping and things like that are going up in price. We've just had an increase in the fuel charges. And so tell me what you did about it. I wrote to you. So you emailed Moneybox and now I'm here. Yes. I wrote to Claire Hughes. Your local MP. Local MP. But then I suddenly remembered water meters. So I got on to my supplier.

When I told them the problem, they suggested it. They asked a number of questions on the telephone call. Have you got a power shower? Have you got a dishwasher? That sort of thing. And they said it should be about £300 for the year. So £1,500 for the year, down to £300 for the year. Yes. That's a mammoth saving for your personal finances. Well, it'll make a huge difference. It'll mean I can pay off some of the credit cards that I've been using. So to be able to pay those off would be good.

Because the interest rates are horrendous. What would be your message to other people who might have been in your situation, getting this huge, big increase in their water bill, not to mention the other bills? What would you say to other people like you? Get a water meter. It's as simple as that. Unless they're using horrendous amounts of water, they're going to save money.

Geoff already working out how to spend that £1,200 a year he expects to save. Well, Dan's here. Dan, how many more people could save money like Geoff by getting a water meter? Well, at the moment, Paul, just over 60% of homes in England and Wales, well, they've already got a metre. Now, if you don't, you can ask your supplier for one and they'll ask you some questions to see if it might save you money. Now, as a general rule of thumb, if you have fewer...

people in your home than bedrooms it's worth checking out so crucially if you get one fitted and it doesn't save you money you can go back to your old style bill within 12 months so long as you don't live somewhere where water meters are compulsory also suppliers can refuse to install a meter in some cases. And what else can people do?

Well, obvious things to save water, obviously, if you're on a meter. So make sure your showers, your taps, of course, aren't leaking and are an efficient up-to-date models too. That can help reduce how much you pay if you are one of those people on a meter. But if you're really struggling, as ever...

you need to contact your supplier. We know 1.6 million households right across England and Wales are already on what are known as social tariffs. That's cheaper bills that can cap total amounts people must pay or give percentage discount. Now, the number of households helped in this way is due to rise to 3 million by 2030, paid for in part by these wider bill rises. But critics describe the current system as a postcode lottery of help.

because it's up to individual suppliers to decide not only who qualifies for their social tariffs, but also how much help they get. Thanks, Dan. Well, that gamble might change after a new law was passed this week, which gives the government the power to impose a single national law. social tariffs on all the water companies in England. Andy White is from the Consumer Council for Water, which acts for customers in England and Wales. Andy White, how do you want these social tariffs to change?

good afternoon paul yeah we want to see a more um consistent approach and one which is more comprehensive and capable of eradicating water poverty the schemes that we've got at the moment they do a lot of good and we would certainly advise people to check them out if they're struggling at the moment but actually what we need is

something that offers help wherever you live. At the moment, potentially you could access up to 90% bill discount in one area, but the same person might not be eligible for any support in another region. Yes, you've been calling for a single uniform social tariff for a long time, and I believe you're now saying the government can do it within two years with this new power. Is that possible with a dozen or more firms involved?

We've got the foundations laid there. That was a big step forward. I think we've never been closer now to realising that ambition of getting that single social tariff in place. There's obviously some complexity ahead in terms of... getting all the companies and working out exactly how that will work. But I believe it's possible and it needs to be done because there's a real pressing need with these bill increases that we're seeing over the next five years.

from April, some of the very big increases are happening immediately. We need to act urgently. And we know that the government shares our desire to improve the support that's available. And we're really keen to collaborate with them to make this happen very quickly. Is there a danger, though? You've got a dozen or more systems at the moment.

moment you then impose a single one on top of it are there going to be losers as well as winners which almost inevitably happens when you have a big reform like that That's one of the most important things that we do need to look at. We want the new social tariff to be really focused on.

addressing water poverty. It could be at the moment that some people are actually getting more help than they need to be lifted out of water poverty, whilst some are getting no help at all to do that. So there could be changes. if that happens then there has to be an approach which means either those continue alongside the new single social tariff or there is a transition and that the move away from that happens over time and in a way which won't impact people significantly.

Now you say you think the government wants to do this. So it did tell us that water companies must ensure supports available for vulnerable customers who are struggling to pay their bills. So there is a system in place which the government in a sense defends. Do you think there really is an appetite in government? for this change.

We believe there is. You know, we've made it clear in the review that we undertook for UK and Welsh governments in 2021. This was the headline recommendation, the single social tariff. And we're continuing to speak. with government, obviously putting this in place. for customers in England is a big step forward. Unfortunately, here on St David's Day, what we don't have is the same law change for Wales. So we would like to see Welsh Government also putting that framework in place, which would...

allow for us to move forward across England and Wales so it's truly consistent across both regions. You mentioned water poverty and obviously there are millions of people struggling. What if they just can't afford to pay? I do remember in the past were cut off can that happen now so it can't happen at the moment you're not cut off

But, you know, absolutely the worst thing to do is to not speak to the water company. We know from our research that a lot of people are reluctant to get in touch. They think that they will just be, their water company will come down hard on them. But actually they do. need to get in touch if they don't then there's the risk of um credit reference uh the agency data sharing so their credit

record will be impacted and might make their financial circumstances worse and ultimately they could go to court. Yeah, so do something even if you can't pay and there will be help hopefully. Andy White from the Consumer Council for Water, thanks.

Train fares in England and Wales will go up on Sunday by 4.6%. At the same time, most rail cards, which give you cheaper fares in England, Wales and Scotland, will cost you more. Dan's also been poring over the details of this. Remind us first, Dan, what is a rail card?

OK, so rail cards can give you discounts on most train fares and are available to lots of different groups, including 16 to 30 year olds, people over the age of 60, veterans and disabled people. Now, there are also rail cards available for... Now, they're usually valid for one year, but some can... But how much is the cost of them rising?

Well, this is the first increase to railcard prices since 2013, Paul, so a long time. Now, one-year railcards will increase from £30 to £35, and three-year railcards are going up by £10. Now, the only exception is the disabled... person's rail car that's not going up at all now the price increase comes into effect on 2nd of march but the website will be closed to allow for updates from 10 p.m the night before so if you're listening live and want to get one before the

You have until 10 tonight to get it sorted. But there's still good value. Very good value, Paul. And in fact, some tickets, they're so expensive, a rail car can actually pay for itself in just one journey. Thanks, Dan. And rail fares in Scotland rise on the 1st of April. At the BBC, we go further so you see clearer. With a subscription to bbc.com, you get unlimited articles and videos, hundreds of ad-free podcasts, and the BBC News Channel, streaming live 24-7.

From less than a dollar a week for your first year, read, watch and listen to trusted, independent journalism and storytelling. It all starts with a subscription to bbc.com. Find out more at

The cost of electricity in Cass is also going up again on the 1st of April. But even if you sit there in the cold and dark, the energy firms will take £6 a week off you just to let you be a customer. The energy regulator Ofgem admits that customers are using it.

its own word, overwhelmingly in favour of scrapping these standing charges like these people in Manchester. There's a lot of issue with those, isn't there, at the moment? I just think they're exorbitant and I think they're far too high and I don't think it's necessary.

they're still going to make their money out of it. So they say that they use it for like infrastructure costs and maintenance etc. I really don't agree with that because I think if you're providing a service that's part of the service you're providing and you should take at within the charges that you make but that's you know what i think they're a bit bit annoying aren't they you know i would just compare

the difference and i'd see if i which one i was better off with and if i'm if it turns out i'm better off with standing charges then i'll keep them but i'm just you know i'm just after the best deal at the moment really what do you think about standing charges in general disgusting it's just an absolute ripoff

It's just to make more money. And it'd be nice if there wasn't a standing charge. You should pay for what you get. We're pensioners now, but I feel sorry for the likes of my mum was still here. We'd be probably paying. to help her pay her bills to keep her warm. So it's not on, is it?

People in Manchester talking to our reporter, Haider Salim. Well, they share those views with about 20,000 customers who responded, scrap them to Ofgem's consultation last year. But the regulator confirmed in the last few days it's decided not. to scrap the standing charge. From April 1st, it will still cost you more than £315 a year to be connected to both the electricity and gas networks. Instead, Ofgem has opened a second consultation asking for views...

on a plan which would give customers a choice. Pay what you pay now, or... Choose to pay perhaps 20% or 30% more for the electricity and gas you actually use, but with no fixed standing charge. We're live now to talk to Peter Smith. He's Director of Policy at the charity National Energy Action. people in Manchester don't like standing charges. Most of those who responded to Ofgem don't like them. There's a big movement to scrap them but Ofgem's ignoring it.

Well, yeah, there is huge public concern on this area and it might not be sufficient. The proposals might not be sufficient to quell that concern. It seems like Ofgen's proposals do seem incredibly complicated and they don't overall reduce standards. charges, which is something Ofgen we're considering doing by April. And there are many concerns about how customers will need to jump through the hoops necessary to benefit from their proposal.

Yes, I mean, Energy UK, which represents the suppliers, told us that they have to cover the cost of maintaining the infrastructure that delivers the energy and so on. Ofgem has also made it clear the cost of doing all that. have to be recovered. So when people say scrap them, do they realise that means higher unit costs?

Well, that's right. If all the costs were to be recovered within the unit rate, those unit rates would go up by about a fifth. And those costs will need to go somewhere. They need to pay for our critical energy infrastructure. But that doesn't mean that there. were much more progressive opportunities for make reforms, which could have addressed some of these issues without putting the complexity at the consumer's feet.

Yes, I mean, and it will be on the consumer, won't it? Because there's a standing tariff, a standing charge, a tariff with a standing charge like now, or you could choose a zero standing charge. What do you think of that? Do you think people will really bother to choose it? stand it and take the action where many people don't even switch to a better rate.

Well, the first thing to say is they will be required to take action. At the moment, Ofgen's headline proposal is that those people need to actively switch to that tariff. So unless you're a savvy switcher, then you could be very unlikely to benefit from Ofgen's proposals, mainly that...

higher standing charges will just continue to be recovered in the regressive way they are now. We also know that households, although some households would have the incentive or the time and inclination to switch. this tariff people like second homeowners or landlords for example um the vast majority of people uh won't have the time may be very confused by this situation or lack the confidence or in some instances just unable to switch

Yes, and of course, it's not second homeowners that need the help in this sense, is it? It's people with debt. And, you know, there's £3.9 billion of energy debt we've talked about before. And some of that, of course, is people on prepayment metres who... which is only standing charges because when they run out of money, they're still charged £6 a week.

Well, this is an issue which we believe it absolutely needs addressing and is completely unaddressed by these proposals. The way that prepayment meter customers need to pay for these charges is completely unfair. They need to pay for them before. they can access any units of energy, regardless of whether or not they've used any energy in the home for an awfully long time. There were simple proposals being put to the regulator, which would make a simple change the way those arrears are recovered.

And we're hoping that they're still looking at those type of options because, sadly, our charity works with many people that haven't been able to access any energy for months, if not years, in some instances. And you mentioned that as an option. would you like Ofgem to do rather than what it's planning? Very briefly.

There are options to look at whether or not you switch to, regardless of whether or not you switch to the zero standard tariff, you could take into account a customer's payment method, their fuels that they use, or even their incomes to make. the system far fairer.

Thank you very much, Peter Smith. Thanks very much for talking to us. And the consultation on its proposed changes and standing charges runs until the 20th of March. You can give your thought. You just have to search Ofgem Zero Standing Charge online and send it in.

Now, there's just a month left for people in the process of buying a home in England and Northern Ireland to complete the sale before stamp duty rises on April 1st. The extra tax will typically be £2,500 or as much as £6,250 for many first-time buyers, more for a few, and will be due if the sale hasn't completed by midnight on 31 March.

suggest there could be tens of thousands of buyers who will miss that deadline by just a few days. The rise is due to the end of the concessions put in place in the Liz Trust mini-budget of 2022, the threshold at which the tax... starts will fall, and so will the maximum price where that first time by a...

concession ends. So more buyers will pay stamp duty and those that do will pay more. Now we spoke to Amelia before Christmas. She was searching for her first home and trying to buy it before the deadline. She's had an offer accepted and is currently going through. sales process.

I'm still moving forward with my property purchase however because of the time constraints with the stamp duty deadlines the mortgage advisors and banks have a lot more applications and the wait times upcoming longer so they think it's extremely unlikely that it will complete before the deadline however we're lucky enough to have agreed with the seller that they will reduce the asking price by the amount they stamp duty so

It is extremely frustrating that we have to pay that when if they hadn't changed the rules, it would be a very different situation. However, we're obviously very grateful that our seller has understood the situation and is working with us. Amelia with one solution there.

of Rita Coley as managing director of the broker at the mortgage stop. Rita Coley, Amelia had hoped to complete her purchase before April and avoid stamp duty altogether if she was a first-time buyer, but she's not going to manage that. Now, she says everyone... from brokers to lenders are so busy. How big is the rush you've seen to push these sales through?

Thanks for having me on, Paul. Yes, certainly it's been very busy towards the start of the year because people are wanting to rush to complete before 31st of March. And also understand that it's not just the mortgage lenders that are needing to push through the applications to approval, but it's also working with the solicitors as well and hoping there's no complications further down the line.

Yes, because it's things like convincing and searches and everything else can take time, can't they? I gave a few figures there in my introduction, but just tell us a bit more about the detail of how this will work and how much more people will have to... So I'll give you a couple of examples. If you're a first-time buyer purchasing at £350,000, before the 1st of April 2025, you pay no stamp duty.

But after the 1st of April 2025, it would go up to 2,500. And comparing the same amount for a home mover. Again, if you're purchasing at £350,000 before the 1st of April, they'd be paying £5,000. After the 1st of April, it goes up to £7,500. So both seeing the same increase there of £2,500, but some first-time buyers will pay, as I said, over £6,000. I think there's one sort of limiting case where people might pay over £11,000.

thousand pounds more yeah it depends on the purchase prices so i've given you a just an hour on an average price because the first time by a threshold is 425,000, which will unfortunately disappear. Yes, and that will be reduced significantly. Now, Amelia's... been lucky because her buyer has understood the situation and reduced the price to help her to, in fact, it seems, cover all this extra stamp duty cost. Is that something people in that position should now start asking the sellers?

come on, at least share this, if not give us all of it. I think Amelia's been a very lucky person. Certainly they can approach it if they know them. There's going to be delays, especially from solicitor's side and things that are out of their hands. And it depends on the type of change. There's many people involved and it's out of your hands. I've had an example where one of my clients... They've had six people in the chain. Unfortunately, it's fallen through because...

One of them at the top of the chain has said it's going to cost them too much and it's not going to complete in time. That's always the problem when you put a chain of people all trying to get things through against difficulties. So it could cost thousands more. But do you think the Russia's inflated house?

Figures from Nationwide this morning suggest that's one reason prices have been rising for six months. Might they come down after April? And in fact, it's better to wait if you're not committed to the process and do it then. Absolutely. And it's also a good time to readjust your financials because where, especially first time buyers, save for a deposit, will now need to readjust and think about saving up a bit more for those stamp duty costs.

I do feel there may be a short term slowdown of property prices. And it also depends who is looking to buy. So if you're competing with your landlords, for example, buy to let investors, they may not be so keen. the stamp duty increases but that could free up some more properties for first-time buyers and therefore allowing the price drop to potentially be more affordable for them. There are other factors of course. think about is the interest rates and affordability.

and whether banks are willing to adjust the affordability to get first-time buyers on the property ladder. So interest rates may be falling. Rita Coley of The Mortgage Stop, thanks very much for talking to us.

Well, it's always a bit of a rush on the Moneybox podcast, trying to get everything in before the tape runs out. But just time to remind you that you can take that first step on the radio ladder by emailing us with your... stories moans cheers or tips moneybox at bbc.co.uk or send us a message or a voice note which we love on whatsapp 033 067 83 183 we do read and listen to them all you might get on

show. In this podcast, the reporters were Dan Whitworth and Hader Salim. Research is Ima Devlin and Joe Krasner. Studio manager, Toby James. Our editor is Jess Quayle. I'm Paul Lewis and this was a BBC News money and work production for BBC Sounds. you A billionaire Christian family is building a huge collection of artifacts for their Museum of the Bible in Washington, D.C. During that time, there were 30,000 items, probably. But a scholar turned super-sleeper. Luth starts asking questions.

The magnitude of what I found out is incredible. I'm Ben Lewis. I investigate the darker side of the arts and antiquities world, but nothing prepared me for this story. Something truly truly wrong what's going on. Looters, forgeries and a scandal of biblical proportions. From BBC Radio 4, Intrigue, Word of God. Listen first on BBC Sounds.

At the BBC, we go further so you see clearer. Through frontline reporting, global stories and local insights, we bring you closer to the world's news as it happens. And it starts with a subscription to BBC.com. from the BBC. Find out more