Household finances are set for major hit from April as a raft of money changes take effect.
Price hikes on energy bills, water bills, Council Tax and mobile phone bills, among others, will all kick in on the same day, so it’s going to be a tougher month financially for most.
Energy bills will rise by 6.4% for millions of households as Ofgem’s new price cap rises for the third time in a row, while water bills will go up by £123 per year on average in what is the largest price hike since the industry privatised in 1989. Broadband and mobile phone bills will also become more expensive for millions of customers, as will the cost to buy a TV Licence.
Most councils in England are also planning to raise Council Tax bills by 4.99% – the maximum amount allowed – from April 1, with some being given permission to rise bills even higher. This includes councils in Birmingham, Bradford, Newham, Somerset, Trafford and Windsor and Maidenhead.
The price hikes come alongside an increase to the National Living Wage on April 1, followed by uplifts to inflation-linked benefits and the State Pension from April 6.
Listed are the key dates of price rises kicking in from April that you need to know.
Energy bills – April 1
Annual energy bills for households on a standard variable tariff in England, Wales and Scotland will rise by 6.4% from April 1 as Ofgem increases its price cap from £1,738 per year to £1,849 – an annual rise of £111 on average .
The unit price of gas is increasing from 6.34p per kilowatt-hour (kWh) to 6.99p per kWh while electricity is going up from 24.86p/kWh to 27.03p/kWh.
The price cap sets the maximum rate per unit and standing charge that customers can be charged by suppliers for their energy use – not the total bill, so the more energy you use, the more you pay.
Water bills – April 1
Water bills are going up by £123 on average (a 26% hike) from April 1 for households in England and Wales to help fund upgrades in the water sector, with smaller percentages to follow in each of the next four years.
Regulator Ofwat says further price rises are planned over the next five years, allowing water firms to increase average bills by £31 per year, or £157 in total, to £597 by 2030.
Some regions will face higher rises than others, with Southern Water hiking bills by 47%, whereas Anglican Water and Northumbrian Water are only rising by 19%, according to Water UK.
Broadband and mobile phones – April 1
The majority of customers who took out a broadband or mobile phone contract on or before April 10, 2024 will face an increase of 6.4% from April 1, based on the inflation rate last December and an additional charge.
Some customers will see rises in line with inflation, while others may face fixed hikes depending on when they signed up or upgraded.
For those on inflation-linked contracts, broadband prices are going up by £21.99 annually on average, but some newer plans will see increases of up to £42 a year, according to Uswitch.
Mobile users face an average increase of £15.90 for inflation-linked contracts and up to £48 for newer deals.
Council Tax – April 1
Council tax bill rises will hit 5% from April 1 for the third consecutive year as almost all councils hike bills up to, or close to, the maximum allowed.
The average annual band D bill (the standard measure of council tax) will be £2,280 including all precepts this year – an increase of £109 compared to 2024.
A total of 293 out of 384 lower and upper tier councils subject to referendum principles (which allow them to raise the levy by 4.99% without triggering a local referendum) have opted to hit the threshold, while 56 chose to go close to the maximum. It means 91% of councils felt it necessary to impose significant increases.
TV Licence – April 1
The cost of a TV licence will increase by £5 from April 1, rising from £169.50 per year to £174.50. For a black and white TV it will go up by £1.50, rising from £57 to £58.50.
You can claim a free TV licence if you’re aged 75 or older and claim Pension Credit or you live with someone who receives the benefit. If you live in a residential care home, supported housing or sheltered accommodation, then you may be entitled to a reduced fee TV Licence.
If you’re blind (severely sight impaired) and can provide the appropriate evidence, you can apply for a 50% discount on your TV Licence.
If none of these apply then you’ll have to pay for a TV Licence at the full rate.
Car Tax – April 1
The standard rate of tax for cars registered after April 2017 is rising to £195 from April 1 – a price hike of £5.
Some owners may pay more, or less, if their car was first registered before 2017, with the rate dependent on when a car was first registered and the type of fuel it consumes.
Owners of electric vehicles (EVs) are also now subject to car tax for the first time. Any EVs registered since April 2025 must pay the lowest tax rate of £10 in the first year before moving to the standard rate of £195.
Stamp duty – April 1
Stamp duty will be more expensive for some homebuyers from April 1 as the “nil rate” band for first-time buyers drops from £425,000 down to £300,000, while other buyers will see a reduction from £250,000 down to £125,000.
Stamp duty is a tax paid on the purchase of a property in England and Northern Ireland and is paid as a percentage of the property price. So any transactions that complete after April 1 are now subject to the increased rates, resulting in thousands of pounds of extra costs for homebuyers.
Stamps – April 7
Stamp prices will rise again on April 7, marking the sixth price hike by Royal Mail in three years. The cost of a first-class stamp will increase by 5p to £1.70, and second-class stamps will go up by 2p to 87p.
