Starting in April, households will have to pay higher bills for everything from energy to council tax
What are the hikes' sizes, and are there any ways to cut costs?
The cost of living will rise by hundreds of pounds in April due to a number of household bills, including council tax and energy and water bills.
After the most recent Ofgem price cap announcement, gas and electricity bills are expected to increase by an average of 6 percent. The biggest price increase since the water industry was privatized in 1989 will occur when water bills increase by an average of £123 annually.
Many councils in England also intend to raise council tax rates by as much as 4 percent. In an effort to avoid bankruptcy, six local authorities have been granted special permission to raise bills by up to 10% while avoiding the 4.99 percent cap.
In Scotland and Wales, local authorities are also anticipated to see increases in council tax bills.
The news is not good for your pocketbook. The bill increases coincide with a resurgence in inflation in general. In the third quarter of this year, the Bank of England has predicted that the rate of consumer price inflation may reach 30.7 percent.
The good news is that, for the time being at least, wages are still increasing more quickly than inflation. According to the most recent official data, between October and December 2024, real wages increased at an annual rate of 2.5 percent.
Businesses have cautioned, however, that adjustments to employers' National Insurance contributions later this year may impede wage growth and possibly lead to layoffs.
Higher energy costs and the rising cost of living are the main causes of the 41 percent of British adults who said in a recent survey by the debt charity StepChange that they expect their financial status to deteriorate over the next 12 months. Among parents with children, this increases to 42%, and among women, it reaches 58%.
According to Vikki Brownridge, the chief executive of the charity, "it is evident that millions of people throughout the United Kingdom are experiencing the burden of financial uncertainty." The cost of living, which includes unrelentingly high energy bills, still affects communities, families, and individuals; women and those with parental responsibilities are particularly affected.
Given this, it is more crucial than ever to lessen the effects of the April bill increases and accumulate emergency savings. We examine which bills are increasing and how you can reduce them.
In April, the Ofgem price cap will increase by 63.4 percent, which will further hurt many households. After bills increased by 10% in October and 1.2 percent in January, this is the third consecutive increase.
A typical household's annual gas and electricity bills will increase by 111 to 1,849 if they pay by direct debit. Energy users will pay more. This is 22% less than when the Energy Price Guarantee was in effect at the height of the cost-of-living crisis, but 94% more than it was a year ago.
The head of financial analysis at investment platform AJ Bell, Danni Hewson, stated, "There is a small silver lining in that the spring should bring warmer weather and longer daylight hours, meaning less reliance on heating and indoor lighting." However, many households are having difficulty paying off debts that have risen as a result of the sharp increase in energy prices, and many more are questioning whether costs will ever return to more normal levels.
The increase will not affect those who have already moved to a fixed energy tariff. For those who prefer the stability of knowing approximately how much their bill will be each month, fixed-rate offers are still available.
If you lock in a fixed-rate tariff now and prices drop over the next few quarters, you might lose out in the future. In July, the Ofgem price cap is expected to drop by about 5%, according to consultancy Cornwall Insight.
In "Should you switch to a fixed energy tariff" we examine the factors in greater detail and point out a number of offers that are less expensive than the April price cap.
Water bills.
Water bills will increase by an average of 26% since April, or £123 annually. According to trade group Water UK, it will raise the average yearly bill to 603. Depending on your usage, you may pay more or less than this. Additionally, costs differ between providers.
From Water UK. April 2025 marks the start of the changes.
Financial mismanagement by the water companies has contributed to higher bills. Significant investment is required to improve the UK's water system, and a number of them have been involved in controversies involving leaks and sewage spills.
Now, a 104 billion investment over the next five years has been approved by the regulatory body Ofwat. "We now need to see companies deliver significant improvement in performance for customers and the environment," Ofwat stated: "This is an ambitious program of work."
Unlike energy, water does not allow consumers to shop around. The supplier that serves your neighborhood must be used. You can nevertheless take a few actions to lower your water bill. If you don't already have one, this can entail installing a water meter. You will only have to pay for what you use in this manner.
While not every property can accommodate a water meter, you can request an assessed charge bill from your provider if you are unable to obtain one. Based on variables like the size of the property and the number of occupants, this bill is tailored to your particular circumstances. Customers with low incomes can request a social tariff in the interim.
Council tax.
In addition, a number of local governments intend to raise council tax rates starting on April 1. Although hikes in England are limited to 4 percent, six local authorities have been granted special permission to go over that limit this year. This includes:
Although not all councils have made their decisions yet, you should be able to find information about bill hikes in your area by visiting the website of your local authority. Bradford: 10 percent Newham: 9 percent Windsor and Maidenhead: 9 percent Birmingham: 7.5 percent Somerset: 7.5 percent Trafford: 7.5 percent Not all councils have made them yet.
Although councils in Scotland have total authority to set rates, for the majority of the last 20 years, these rates have been frozen or capped. This is scheduled to conclude in April. Many people will see large increases in their bills as a result of this, including?
Wales does not have strict thresholds for council tax hikes, but Welsh ministers have the authority to limit increases that are considered "excessive." North Lanarkshire: 10 percent; Scottish Borders: 10 percent; East Lothian: 10 percent; Fife: 8.2 percent; City of Edinburgh: 8 percent; Glasgow City Council: 7.5 percent.
Verifying that you are in the appropriate council tax bracket may help you save money. If you were mistakenly placed in a more costly band, you may be eligible for a bill reduction and possibly even a refund of council tax.
Certain individuals may also qualify for a reduction or discount in their council tax bill due to their unique situation. For instance, people who live alone are eligible for a 25% discount. Discounts are also available to those with specific disabilities. In a similar vein, households with all members enrolled full-time are exempt from paying any council taxes.
Additionally, you may be eligible for a council tax reduction if you or your partner have a low income. The precise standards differ amongst councils.
Bills for mobile and broadband.
Earlier this year, communications regulator Ofcom implemented new regulations that forbid unexpected mid-contract price increases for paid TV, broadband, and mobile plans. This is applicable to anyone who signed a contract on January 17, 2025.
The new regulations mandate that providers notify clients of price increases before they terminate the contract, including the date of the increase and the amount in pounds and pences.
However, this April may still see inflationary price increases for those who terminated their contracts prior to these changes. The historical rate of CPI or RPI inflation is usually the basis for these.
Customers who signed a Virgin Media contract prior to the new regulations taking effect, for instance, will see a 7.5 percent increase in their bills this April (January's RPI plus an extra 3.9 percent). By visiting your provider's website, you can determine how much your bill is likely to increase.
If your provider isn't competitive, switching providers is the best way to lower your phone and broadband bills.
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