WITH the arrival of April, several household bills across the UK are set to rise, adding extra pressure to household finances. While wages have been increasing and outpacing inflation on average, many households may still feel the strain of these cost hikes. Here are seven key areas where bills are increasing this month.
- Water Bills
Households in England and Wales will see their water bills rise by an average of £10 per month, though the increase varies depending on the provider.
For instance, Southern Water customers will face a substantial 47% increase, bringing the annual bill to £703, while Anglian Water bills will rise by 19% to £626. Several factors, including the presence of a water meter and usage levels, will impact the final bill. These increases are front-loaded for the next five years, meaning the biggest rise is happening now.
Water companies argue these hikes are necessary to invest in infrastructure improvements, including sewage systems and reservoirs. In Scotland, bills are rising by nearly 10%, with Scottish Water citing climate-related challenges such as drought and intense rainfall as reasons for increased spending. In Northern Ireland, domestic water charges remain covered by the devolved government, so households will not see an increase. - Energy Bills
From April, a typical household’s annual energy bill will increase by £111 to £1,849. This is due to Ofgem, the energy regulator, raising the price cap in response to higher wholesale costs and inflation.
The cap, which is updated quarterly, limits how much suppliers can charge per unit of gas and electricity but does not cap the total bill—meaning higher usage still results in higher costs. The changes will affect 22 million homes across England, Wales, and Scotland.
Standing charges, the fixed daily fees for maintaining supply connections, are also changing. While electricity standing charges are decreasing in some areas, gas standing charges are rising, depending on the region. Ofgem suggests households consider fixed tariffs for greater stability. - Council Tax
Most households will see an increase in their council tax, with the level of the rise depending on their local authority.
In Wales, council tax rates could rise by as much as 15% in certain areas. Although the Welsh Government has provided £253m in its draft budget to assist councils, local leaders say additional funding is required.
In England, councils responsible for social care can raise council tax by up to 4.99% annually without requiring a public vote. Smaller councils without social care duties can increase rates by up to 2.99%. However, some councils, including Bradford, Newham, Birmingham, Somerset, and Windsor and Maidenhead, have been granted permission to exceed this cap.
In Scotland, where council tax rates have been largely frozen since 2007, some areas will see rises of up to 10%. The Scottish Government has allocated an additional £1bn for local authorities in 2025-26 to mitigate these increases.
Northern Ireland operates a domestic rates system instead of council tax, and all councils have confirmed rate increases for the coming year. - Car Tax
The standard road tax rate for vehicles registered after April 2017 is increasing by £5, bringing the annual charge to £195. The exact amount depends on when a car was registered and its fuel type.
A notable change is the end of road tax exemptions for electric vehicles (EVs). From April 2025, newly registered EVs will pay a first-year rate of £10 before moving to the standard £195 rate. EVs registered after April 2017 will also shift to the standard rate. - Broadband, Phone, and TV Licence
New rules introduced by the telecoms regulator require broadband and mobile providers to clearly communicate price rises “in pounds and pence.” However, these rules mainly apply to new customers, meaning the impact of price increases depends on when a contract was signed.
For instance, EE’s Sim-only customers under the new terms will see a £1.50 monthly increase (£18 annually). However, most EE customers who took out contracts before 10 April 2024 will face a 6.4% rise, based on last December’s inflation rate plus an additional charge.
Virgin Media broadband customers will see a 7.5% increase, while those who signed contracts after 9 January 2024 will face a fixed £3.50 rise.
Meanwhile, the cost of a TV licence is increasing by £5 to £174.50. The black-and-white TV licence will rise by £1.50 to £58.50. - Stamp Duty
In England and Northern Ireland, the threshold for paying stamp duty on house purchases is reverting to £125,000, down from the temporary £250,000 threshold.
For first-time buyers, the exemption threshold will also decrease, from £425,000 to £300,000. As a result, many buyers have been rushing to complete purchases before the deadline to avoid higher costs. - Hidden Tax Rises
The government has extended the freeze on income tax and National Insurance thresholds until 2028, a policy introduced by the previous administration. This is often referred to as a “stealth tax,” as it increases tax revenue without explicitly raising rates.
Due to a process known as “fiscal drag,” more people are pushed into higher tax brackets as wages rise. The Office for Budget Responsibility estimates that by 2028-29, nearly four million additional taxpayers will be liable for income tax, and three million more will fall into the higher tax band.
The new tax year begins on 6 April, meaning these changes will soon take effect.
Conclusion
While wage increases and falling inflation may offset some of these rising costs, many households will still feel the impact of these changes. Keeping informed and reviewing household budgets may help mitigate the financial strain.
