Save yourself from the Iran war financial meltdown. Wise people are acting now, says money expert HELEN KIRRANE. Use this weekend to make these simple moves... don't struggle because you missed out

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Dark financial clouds are gathering as the conflict in the Middle East threatens to hit British households with higher prices on everything from energy bills and petrol to food and mortgage rates.

But even before then, a major bill shock is arriving on Wednesday, April 1, when households will wake up to higher bills on what is known as the yearly ‘price hike day’.

Millions will be forced to pay hundreds – or even thousands – a year more on many of their bills, from council tax to water and broadband.

But you can fight back. Our ‘bill-maggedon’ action plan could save you up to £1,641.

Council tax

Council tax bills will rise by as much as 15 per cent on April 1. The average council tax for a typical band D property in England is currently £2,280. Local authorities with responsibility for social care will raise council tax bills by 4.99 per cent again this year – to £2,394 on average. Three in four of these local authorities (119 out of 153) have proposed or confirmed a 4.99 per cent bill hike – the maximum increase they can make without holding a local referendum.

Smaller English councils are allowed to raise bills by only 2.99 per cent, while in Wales rates could rise by as much as 15 per cent.

Council tax rates in Scotland can increase by up to 10 per cent following several years of limited rises.

But you may be able to get a discount. If you live alone, have a live-in carer or share a property with a student or someone with a severe mental illness, you may be entitled to 25 per cent off. This would cut the average bill by £570.

Or if you think you are in the wrong band, you may also be able to save hundreds of pounds by challenging the Valuation Office Agency (VOA). Its banding system was introduced in 1991 and is based on property values at that time.

The higher the band, the more tax you pay. Ask neighbours in a similar property what band they are in. If they are in a lower band, it might be worth challenging yours.

Check the Government’s online tool at gov.uk/council-tax-bands for guidance.

Be warned, though – if you appeal and the VOA decides you are in the correct band and your neighbour is not, it could result in them being moved into a more expensive band.

Typical price hike: £114; Potential savings: £570

Water bills

Households in England and Wales can expect water bills to rise by at least £2.70 a month on average from Wednesday.

Industry body Water UK says bills are expected to increase by £33 a year – 5.4 per cent – on average to £639 a year from £606. However, the exact hike you face will depend on where you live.

Among the worst-hit will be homes in Sheffield, Bristol and North Wales served by Severn Trent, where bills will rise by 10 per cent.

Unlike other utilities, you can’t shop around to get a better deal on your water bills, as usually just one company will supply an area. But there are ways to limit the damage.

Most water companies have a social tariff for customers who are struggling or who receive certain benefits. Some households could also save costs by installing a water meter – those who switch typically save up to £100 a year.

With a water meter you are charged for what you use rather than a set cost based on the value of your property – known as its rateable value.

As a rule of thumb, if there are more bedrooms in a home than people, a meter could save you money.

Other water-saving methods include using your roof – it can collect 50,000 litres of water in a year, so install a 50-gallon butt costing about £40 from a DIY store, which can be used to water the garden rather than using a hosepipe.

Or cut down on baths and have showers instead. A bath typically uses 100 litres of water while taking a four-minute shower with a £20 water-saving shower head uses just 32 litres.

A washing machine requires up to 150 litres of water per wash. But if you wash using the eco-mode setting it can be just 50 litres.

Typical price hike: £33; Potential savings: £100

Broadband, mobile and TV

Average broadband bills are expected to rise by up to £48 a year from April

Users signed up to Sky, BT, EE and Virgin Media are expected to see an average of £39.60 added to their annual broadband bills.

Mobile customers with O2 and EE will be hit with a price increase of £27.60 on average.

Those with BT, Plusnet, Virgin Media, TalkTalk, and Hyperoptic will face the steepest bill hikes of £48 a year – an inflation-busting rise of 11 per cent.

Eight million broadband and 14 million mobile customers are currently out of contract, or will be before April 1, according to price comparison website Uswitch. They could beat the price rises as they are free to switch providers without paying a penalty fee.

Switching can save broadband customers an average of £329, according to Uswitch. Mobile customers can save an average of £304 switching from a handset contract to a SIM-only contract.

If you are outside your minimum term, you can switch provider without paying an exit fee. Look for a provider which has committed to freezing prices until 2027 to avoid rises for another year. For broadband, Virgin Media, Community Fibre, EE, Plusnet, BT, Vodafone and Hyperoptic have all recently announced price freezes for new customers. For mobiles, Three, Vodafone, iD Mobile and Tesco have also announced price freezes.

Ernest Doku, mobile expert at Uswitch says: ‘The deals we’re seeing at the moment are the strongest they’ve been in years.’

Typical price hike: £72; Potential savings: £633

Energy bills

The energy bills price cap is expected to increase in the summer by £332 to £1,963 annually

Gas and electricity bills are set to fall by £117 a year on average from April 1, to £1,641 a year for a typical household. However, there will barely be a chance to enjoy the savings, amounting to around £10 a month, before prices start to rise again due to the ongoing conflict in the Middle East.

Most households are on a variable rate tariff, which means that the cost of their energy rises and falls in line with energy regulator Ofgem’s energy price cap. That is set every three months and is determined by what is going on in wholesale energy markets.

If wholesale prices rise, Ofgem will increase the cap so that providers are not selling energy to their customers for less than they can buy it for. But there are fears the conflict will trigger a crippling hike in energy bills this winter.

Expert analyst Cornwall Insight has forecast that the price cap could jump by £332 in the summer to £1,963 a year.

The Chancellor has ruled out the type of blanket support provided after energy bills soared in 2022 when Russia invaded Ukraine, but has promised to support ‘those who need it most’.

Uswitch’s director of regulation Richard Neudegg advises anyone not on a fixed rate to consider moving to one now. ‘There are still well-priced fixed deals available,’ he says. But you will need to be quick – many suppliers have been axing deals in recent weeks. On Saturday, February 28, there were 38 fixed tariffs on the market – there are 26 available today.

The cheapest fixed tariff for a household with typical energy usage is currently offered by Outfox Energy at £1,760 annually, according to Uswitch. If the price cap were to rise to £1,963 from July, households would see a £338 saving with this deal.

The best way to find a new deal is on a comparison website such as Uswitch, Money Supermarket or Compare The Market.

Typical price ‘hike‘: minus £117; Potential savings: £338