From council tax to energy bills - here's every household cost set to rise on April 1
Reach Daily Express March 29, 2025 08:39 PM

Households across the UK are set to be hit with higher costs come next month as a number of bills are expected to rise. With the new financial year, on April 1, bills such as energy, council tax, and car tax among others will be going up.

It's important to be aware of these changes to help you budget accordingly for the months ahead. The costs that are going up include energy, broadband, mobile phone and TV licence, car tax, water, stamp duty, and council tax.

Energy

As reported by , the average annual energy bill in the UK will rise to £1,849 a year as Ofgem increases the price cap yet again. This is a 6.4% annual increase.

For the majority of households paying for their gas and electric on direct debit, this will equate to £9.25 per month. However, around 11 million homes won't experience a change in costs until their fixed-rate contracts end.

It's also worth noting that standing charges, which are the daily fixed fees to remain connected to a gas and electricity supply, are due to rise for gas but drop for electricity. Although this will depend on where you live.

Broadband and mobile

While Ofcom's recently instated regulations to prohibit inflation-linked contracts commenced in January, numerous customers remain on preceding agreements that are set for an inflation-related price hike. Comparison website Uswitch has provided details that the upcoming rises in April are predicted to pile an extra £21.99 annually on average onto bills of those with inflation-linked contracts.

For individuals with more recent "pounds and pence" plans that have fixed increments, the additional cost could amount to as much as £42 per year. Thus, it's imperative to investigate your contract thoroughly for possible upsurges.

You might find more competitive rates by amalgamating your telephone, internet, and television packages, yet be cautious and review the fine details for any exit charges that may apply.

TV licence

The expense of a TV licence is set to increase too, reaching £174.50 - a £5 elevation from the previous year. Seniors aged 75 or beyond who receive pension credit, or cohabit with a partner who does, are eligible for a complimentary TV licence.

Individuals residing in residential care or sheltered housing schemes can acquire a licence at a reduced fee of £7.50, whereas people who are registered blind, or live with someone who is, are entitled to a 50% concession.

Car tax

Vehicle excise duty is also on the rise for cars registered post-April 2017. From April 2025, the standardised charge for car tax will stand at £195, reflecting a £5 increment.

Owners of hybrid vehicles benefit from a slight deduction (£10), but if your car's initial sale price exceeded £40,000, then you might also incur the "luxury car tax" surcharge, which escalates annual expenses by £410.

If your car was first used before 2017, you might pay less. However, the exact amount will hinge on the year the car was registered and its fuel type.

A significant change is that electric vehicles (EVs) will no longer be tax-exempt - those registered from April 2025 will pay the lowest rate of £10 in the first year, then transition to the standard rate.

Water

Perhaps the most contentious of the April changes is a substantial hike in water bills. Bills are set to rise, a situation attributed to issues such as higher borrowing costs due to large debt levels, ageing infrastructure, and record sewage discharges into waterways.

Yet, it was reported last March that England's private water companies made pre-tax profits of £1.7bn, an increase of 82% since 2018-19, sparking renewed calls for the utility to be brought back into public ownership.

The average annual water bill will surge by 26% or £123 in the next financial year alone, according to figures.

Water UK stated that the increases would vary across households, depending on factors like water usage and whether a water meter is installed.

Stamp Duty

Changes will take effect from April 1 and will impact those in England and Northern Ireland.

The current "nil rate" band, the threshold for first-time buyers before they start paying, will fall from £425,000 to £300,000. Meanwhile, other home purchasers will see a drop in their starting point from £250,000 to £125,000.

In the capital, average first-time buyers could be hit with an additional cost of over £11,000 come April, as noted by banking giant Santander.

Council tax

About 85% of senior council authorities in England anticipate hiking council tax by just under 5%. Moreover, a handful of councils including Bradford, Newham, Birmingham, Somerset, and Windsor and Maidenhead have received special dispensation from the government to override the 4.99% cap, setting the stage for potentially heftier council tax increases.

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