UK household bills rise significantly starting April 2025

Several household bills are rising this April, adding financial pressure on families. Key increases include water, energy, council tax, stamp duty, and others. Here are some details about what to expect and how to cope. Water bills in England and Wales will rise by an average of £10 per month. Some customers will see much larger increases, with Southern Water bills going up 47%. Water companies say these hikes are necessary to invest in infrastructure and climate resilience. Energy bills will also increase, with typical households facing an added £111 annually. Ofgem raised the energy price cap due to higher wholesale costs. While standing charges for gas are going up, those for electricity are decreasing. Households may want to consider fixed tariffs for stability. Council tax is projected to rise significantly in various parts of the UK. In England, some councils can increase rates by up to 4.99% without a referendum. In Scotland, increases are also expected, while Wales may see hikes of up to 15%. Many councils in Northern Ireland will report tax increases. Stamp duty thresholds are changing too. Buyers in England and Northern Ireland will begin paying the tax on properties over £125,000, down from £250,000. This change aims to collect more from home sales as many rush to buy before the deadline. Broadband and mobile bills are set to rise, with some customers seeing increases around £1.50 per month. The cost of a TV licence will also go up by £5. Additionally, car tax will rise for newer registrations, with electric vehicles no longer exempt. Finally, income tax and National Insurance thresholds will remain frozen until 2028. This means more people will move into higher tax brackets as wages rise, a process known as "fiscal drag." These changes could affect nearly four million additional taxpayers by 2029.