All household bills set to rise in April and what you need to know to save cash
22 March 2025, 14:14
Household bills, from energy to car tax, are expected to rise for consumers from April 1 - here's what you can expect and to save.
Listen to this article
Loading audio...
The new financial year on April 1 will bring bill increases for most households.
Cost hikes are expected in:
- Energy
- Water
- Broadband, TV license and mobile phone
- Council tax
- Stealth tax
- Car tax
- Stamp duty
This comes as fears grow for Reeves' April mini-budget.
Official figures released by HM Revenue and Customs (HMRC) show an extra 680,000 people were pulled into the 40 per cent tax bracket compared to the same period the previous year.
It's the first time the 5 million threshold has been breached - and comes amid fears that a mini-budget could see tax bands frozen, with middle-class taxpayers and families being hit hardest by the measure.
The move looks set to come despite the Chancellor promising no further tax hikes.
Energy
Energy bills are expected to rise to £1849 annually.
Energy regulator Ofgem has increased the price cap for the third time - resulting in a £9.25 hike per month.
Fixed-rate deals will see no change until their term expires.
Standing charges, which are daily fixed charges for gas and electricity connections varying by region, are dropping for electricity but rising for gas.
"If you find a fix for up to 3% more than the current (Jan to Mar) or 3% less than the new (Apr to Jun) price cap, it's predicted you'll save over the year compared with staying on the price cap," Martin Lewis, consumer expert, told Sky News.
Emily Seymour, Which? energy editor, told the broadcaster: "There's no 'one size fits all' approach when it comes to fixing an energy deal as it will all depend on your individual circumstances.
"For example, if you have an electric vehicle, you might want to look for a tariff which offers cheaper electricity overnight to charge your car.
"As a rule of thumb, we'd recommend looking for deals close to the current price cap, not longer than 12 months and without significant exit fees."
If you are eligible, the warm home discount will automatically provide £150 of annual energy bill reduction from the government.
Water
Water bills are expected to rise by 26%, which is £123 annually.
Water UK report that increases would vary depending on water use and if a water meter is installed.
In October, it was announced that water companies will be forced to pay a £157.6 million penalty after missing key targets on pollution, leaks and supply interruptions.
It was reported at the penalty would come in the form of lower bills to customers in 2025-2026.
Last March, private water firms in England reported a £1.7 billion pre-tax profit.
Broadband, Mobile and TV
Broadband and mobile bills are expected to rise for those with older contracts.
Ofcom banned inflation-linked contracts in January.
Despite this, Uswitch reported that bill rises could add £21.99 annually if you're on an inflation-linked contract.
Hikes of £42 annually can be expected for those on new "pounds and pence" plans which are subject to fixed increases.
BT/EE/Plusnet, Vodafone, TalkTalk, Three Broadband and Virgin Media have all introduced this type of plan for customers - but check your individual policy.
Switching providers while outside of a contract can save you up to £235 a year, research from Which? shows.
TV Licenses will go up by £5 to £174.50 annually.
Those 75 or over with pension credit qualify for a free TV license.
85% of council authorities in England are increasing their council tax by just under 5%.
Bradford, Newham, Birmingham, Somerset, plus Windsor and Maidenhead have all been given permission to raise council tax above the 4.99% cap.
You may qualify for a council tax bill discount if you are a student, living alone, or are disabled.
Stealth Tax will see frozen income tax thresholds resulting in earners being pushed into a higher tax bracket if their pay cheques increase.
You could also pay tax on savings by going over the personal savings allowance, which is currently set to £1000 for basic rate taxpayers.
The standard rate of road tax for cars is increasing, for cars registered after April 2017.
From April 2025, car tax will rise to £195, a £5 increase.
Hybrid cars will receive a £10 discount, but vehicles priced over £40,000 when new will see an additional £410 "luxury car tax" fee.
Cars first registered before 2017 may pay less, depending on the year and fuel type.
Electric vehicles (EVs) will no longer be tax-exempt. EVs registered from April 2025 will pay £10 in the first year, then move to the standard rate.
Stamp duty changes are set for April 1 as the current "nil rate", or paying threshold, for first-time buyers will go from £425,000 to £300,000.
Home buyers will see the threshold reduce from £250,000 to £125,000.
