Households across the UK are bracing for a wave of rising costs in April, with essential bills and everyday expenses set to climb. From energy and water bills to the TV licence, Brits will have to fork out hundreds more just to stay afloat.
Alice Haine, personal finance analyst at investment platform Bestinvest said: “For a while, it seemed as though the cost-of-living crisis was behind us, but a mixed bag of miserable macroeconomic news of late has radically shifted that outlook. These include the ‘painful’ October Budget that saw tax hikes imposed on businesses from April, something expected to prove inflationary because many companies plan to pass on higher employment costs to consumers.”
Ms Haine added: “The result of all this turmoil is that British households now face a barrage of bill hikes in April that will swipe at their living standards by eating away at their disposable income. Anyone lucky enough to receive a pay rise in recent months will be dismayed to see most of that swallowed up by sharp hikes in household bills, whether that is council tax, water or energy, among other costs and taxes.”
Find out how much April’s price hikes will impact your finances using our Budget calculator below.
Electricity and gas bills for customers on variable tariffs will rise by 6.4% when energy regulator Ofgem’s new price cap comes into effect on April 1. This is estimated to take the average annual bill for a typical duel-fuel household up to £1,738.
Water bills in England and Wales will rise by roughly £123 a year, or about £10 per month.
Meanwhile, millions of households will see a jump in their annual council tax bills, with most local authorities in England preparing increases of up to 4.99%. This decision means an average rise of more than £100 for band D properties.
Some authorities, such as Windsor and Maidenhead, and Bradford, are preparing to raise bills by as much as 8.99% and 9.99%, respectively.
Find out how much your council tax bill will rise from April 2025 using our tool below.
Mobile and broadband bill increases will also hit when mid-contract price rises take effect. Inflation-linked mid-contract increases have been banned for any contracts signed since January this year, so these customers should have a fixed price increase that would have been clearly set out when they signed up.
For those with older contracts, inflation-linked hikes could see some people facing a sizeable jump. For example, EE, BT and Plusnet customers who signed up for a contract before April 10, 2024, will see an increase in their bills of 6.4%.
The TV licence will rise by £5 on April 1, increasing the annual expense from £169.50 to a hefty £174.50. For the estimated 3,600 households with a black and white TV, the licence cost will increase to £58.50 per year.
The fee increases yearly in line with inflation until 2027 when the framework is set to be reviewed.
The temporary Stamp Duty discount will be lifted in April, making it even more expensive to buy a property. First-time buyers currently pay no stamp duty on homes priced up to £425,000, but this threshold will drop back to £300,000 from April 1. Everyone else will start paying the tax on properties over £125,000 instead of the current level of £250,000.
It doesn’t stop there. Rising food prices are expected to strain household budgets further from April when the Chancellor’s changes to Employer National Insurance Contributions come into effect.
Major UK retailers, including Tesco, Sainsbury’s, and Marks and Spencer, have cautioned the tax increases will drive up costs, which are likely to be passed on to consumers.
Ms Haine added: “Going back to budgeting basics will be key for households to ensure they don’t stray into overdrafts or find themselves forced to pay bills on credit cards because they cannot make ends meet.
“Creating a monthly budget is relatively easy as you are simply documenting how much money is coming in, how much must go out and how much can be allocated to other needs and wants. This can be put together in an app, on a spreadsheet or even jotted down in a notebook.”
Ms Haine added: “Awful April’ is going to be grim for personal finances, but getting ahead now and working out how much of a hit the bill hikes will deliver to your finances and what you can do to get ahead of the extra costs could save yourself a headache in the months ahead.”
