As we head into April, millions of households are bracing themselves for a sharp rise in household bills. With the cost of energy, water, a TV license, mobile phone contracts, broadband and car tax all set to increase, few of us will make it to the end of what’s been dubbed ‘Awful April’ without our finances taking a hit.
Many are set to benefit from rises in the National Living Wage, benefits and tax credits, and both the basic and new State Pension this April. However, this could be more than offset by bill and tax hikes. We’ve calculated that you could find yourself out of pocket to the tune of £32.17 per month – more than £360 over the next 12 months.
“The past few years have posed significant cost of living challenges, and unfortunately it looks like things are set to get worse this April,” says Rajan Lakhani, personal finance expert at smart money app, Plum. “With inflation at 3% at last count, the amount we’re paying for everyday items is also much higher generally than it was just a few years ago, putting extra pressure on our wallets. For example, food prices have risen around 25% since 2020.”
If you’re worried about how to absorb these extra costs, try not to panic. Read on to find out which bills are increasing, and what you can do to minimise the impact.
Energy costs: Increasing by around £9.25 per month
The energy price cap is updated every three months, and limits the amount that suppliers can charge for each unit of gas and electricity you use. This will increase by 6.4% on 1 April, meaning a typical household will pay an additional £111 per year, which works out at £9.25 per month.
How to beat the price hike: If you haven’t already done so, this is a good time to think about a fixed deal for gas and electricity. Lakhani says: “If you can, get on a fixed deal for your gas and electricity that has lower rates than the forthcoming price cap from 1 April. This means you’ll be guaranteed fixed rates for the coming year – though make sure you also take into account exit fees.”
Even with a fixed deal, your bill depends on the amount of energy you use. Now we’re heading into spring, with lighter evenings on the way, you may be able to save some money just by being a little more mindful about your usage. Kathryn Dunn, who has managed to save up to £30 per month on electricity, even though she works from home, says: “My electricity now costs between £50 and £70 a month depending on the time of year, but I used to pay up to £100”
So how did she reduce her bills?
“If no one’s in a room we turn all the lights off. Everything that has a switch is turned off, even the oven and TV. Anything which has a standby light is turned off. Things which have to be on all the time, like the broadband, are on their own socket so they don’t get touched – but there aren’t many of these.”
Council tax: Rising by about £9.08 per month
Most local authorities in England are allowed to increase council tax bills by a maximum of 5% this year. However, six authorities, including City of Bradford, Birmingham City, and London Borough of Newham, have been given permission to apply bigger increases of between 7.5% and 10%. In Scotland, council tax will rise by at least 8%, with rises of between 4.5% and 9% in Wales.
Last year in England the average charge for a Band D property was £2,171, which means a 5% rise will add £109 per year, or £9.08 per month, to your council tax bill.
How to beat the price hike: “It’s important to double check that you are in the correct band as being in the wrong house value band can add hundreds to your bill,” says Lakhaki. But bear in mind that you could find out you need to pay more. If you’re on a low income or receive benefits, check if you’re eligible for Council Tax Reduction. If you live alone, you should also be eligible for a 25% reduction on your bill.
Water bills: Going up by around £10 per month
Everyone’s water bills are going up in April – but some are rising more than others. The average bill will increase by 26%, or £123, around £10 per month. However, Southern Water customers are braced for a 47% increase (an extra £224 per year), and South West Water are charging an extra 32%, adding £166 to the average annual bill.
How to beat the price hike: If you don’t already have one, installing a water meter could help reduce your bill. A fixed bill is based on the size of your home, so if you have more bedrooms than people living with you, you could save a significant amount of money.
With a water meter, you will only pay for the water you use. You can get one installed free of charge, but it pays to be mindful of your water use. For example, dripping taps, leaky loos or everyday habits like running the tap while you brush your teeth could soon add up and increase your bill.
TV licence: An extra 42p per month
From 1 April, the cost of a colour TV license will increase by £5 to £174.50 per year, an extra 42p per month.
How to beat the price hike: There’s no legal requirement to have a TV licence if you don’t watch or record live TV on any channel or device, and don’t use the iPlayer. So if you only watch streaming services like Netflix, Amazon Prime, Disney+ and YouTube you can cancel your TV licence, provided you don’t use them to watch live TV, including sport.
If you’re legally blind you can apply for a 50% discount on your TV licence, and if you’re over 75 and you or your partner receive Pension Credit you qualify for a free TV licence. However, it won’t be issued automatically and you will need to apply for it.
Broadband: Increasing by about £2.45 per month
Most of us will see broadband costs increase in April, but the amount will vary depending on the package you’ve signed up for and when you took it out. If you signed up before 17 January 2025 you will have an annual fixed price increase, which isn’t linked to inflation. However, some providers implemented these new rules as early as April 2024, meaning you may have a fixed rate increase of around £3 per month.
If you’ve been with your provider for longer, you can expect an increase of around 7%. So an average broadband package of £35 per month will increase by £2.45 per month.
How to beat the price hike: If your current contract is coming to an end, or has already ended, it makes sense to shop around, or renegotiate with your current provider. Sky broadband customer Kamilah Hale says she recently managed to save hundreds just by threatening to leave. She says, “I was put through to their cancellation team. It turned out my WiFi box was very outdated, so they put me on their latest plan and sent me a new box for free, which reduced my cost and drastically improved my WiFi speeds. I also got a better deal by locking into a longer, two-year contract, which has saved me over £200 per year.”
Mobile phone: Going up by around £1.75
Unless you’ve taken out a new contract in the last few months, your mobile bill is likely to go up by around 7% in April, meaning an average monthly bill of £25 will increase by about £1.75. However, if you’ve recently taken out a contract with a new provider you might have signed up for a fixed-price increase, which means your bill will increase by around £3.00 per month.
How to beat the price hike: Lakhani says: “If you’re out of contract, you can switch to a better deal before the end of March – just make sure you check what increases your new provider is planning. If you’re mid-contract, it is a bit tricky to avoid these increases, however it is always worth setting up an alert to make sure you remember to switch as soon as the contract is up.”
Car tax: Going up by at least 42p per month
The flat rate for cars registered after April 2017 will rise by £5 to £195 per year in April. Although this might not make much of a difference to your household budget, there will be an additional £10 charge if you drive an electric car. This is because they are no longer exempt from car tax, which will set you back £10 for the first year, and the standard fee of £195 thereafter. If you’re buying a new EV costing over £40,000 you will also be liable for an additional expensive car supplement of £420 a year for the first five years.
How to beat the price hike: Unfortunately there’s no way to avoid these charges, so it’s important to do your research before you buy a new car and make sure you factor these new costs into your budget.
Image source: Getty Images
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