Financial anxiety: coping with the April 2025 UK bill increases
With living costs and bills increasing yet again, feelings of worry can start to take their toll – especially when it feels like you’ve only just adapted or are living paycheck-to paycheck. Uncertainty about your finances can feel overwhelming. Even the most money-savvy people can struggle with the stress of rising costs. If UK bill increases and financial uncertainty have left you feeling worried, we’ve broken down how you might be feeling, and what you can do about it.
financial anxiety & April 2025 bill increases
Financial anxiety is stress, worry, or fear directly connected to financial concerns. Increased bills and cost-of-living raises have been proven to affect our mental health. In 2022, 77% of adults reported being stressed as a result of the cost of living crisis. A more recent study found that 17 million brits’ are suffering with daily financial anxiety, with the high cost of essential items being one of the key drivers.
So, while the UK bill increases might be causing you discomfort, the feeling is a common – and understandable – reaction.
Kirsty Lilley, our award-winning mental health trainer, coach and mindfulness facilitator, reiterates the sentiment, saying:
‘’Having a home, access to food, running water and warmth are all basic life necessities. Without them we feel threatened. We begin to sense we can’t provide for ourselves and our family, which can impact other aspects of our life, such as our work and relationships.’’
what are the signs of financial anxiety?
Many symptoms of financial anxiety are similar to that of anxiety. But symptoms more specific to money and mental health might include:
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Constant worry about money, even when finances are stable
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Feeling overwhelmed by expenses or struggling to budget
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Avoidance behaviours, such as ignoring bills, your bank balance or statements
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Trouble sleeping due to money stress
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Guilt or shame around spending habits
practical ways to manage money stress in 2025
manage your exposure
Constant exposure to something can take a toll on your mental health, amplifying feelings of stress, frustration, or anxiety. Think about how a song can lose its appeal when it’s overplayed – negative news works in a similar way.
When you’re bombarded with the same distressing stories, it’s easy to fixate on them and assume the situation is worse than it actually is. Break the cycle by limiting your exposure to overwhelming content. Instead of doomscrolling, focus on what directly affects you and take practical steps to manage it.
understand your financial situation – and what you can do about it
While you might feel the itch to avoid delving into the causes of your financial anxiety, this mentality will only serve to make things worse. If you are worried about your finances, understand what’s causing you stress. Have you got debt racking up that you are worried will become even worse? Are you worried about affording to live if your circumstances change? Are you living paycheck-to-paycheck and are concerned about even a slight bill increase? Are you overspending? Perhaps your financial anxiety is even a result of a deeper mental health issue.
Once you know what’s causing your financial anxiety, taking steps to improve it will feel that little bit easier. The next steps might be:
If you are worried about debt, caba has a specialist debt advice service that can help put some of your concerns at ease.
mental health support and counselling
Poor mental health can often be a key factor in financial anxiety, with certain mental health problems causing overspending or poor financial management. Caba offers online mental health support, as well as counselling and other talking therapies.
caba offers financial grants and support to those who are struggling to make ends meet. If you’re worried about affording your bills, school essentials, carer costs, home adaptions, or anything else you need for the every day, we can help.
understand where you can cut costs
There are ways to downplay some of the negative effects April 2025 bill increases. Understand exactly what bill increases are affecting you, look for where you can compare, switch, and save, and other ways to cut down your outgoings.
set up an emergency fund
Having an emergency fund readily available for when your car breaks down, your fridge needs replacing, or your lumped with an out-of-the-blue bill can massively improve financial anxiety.
Vanguard states that ‘’If you're living without a safety net, you're living on the "financial" edge, hoping to get by without running into a crisis. Being prepared with an emergency fund gives you the confidence to tackle unexpected events without adding money worries to your list.’’
Knowing you have a backup plan for a rainy day can quickly quieten those negative, anxious thoughts in the back of your mind. If you want to know where to start, we’ve broken down everything you need to know to about getting started.
get expert guidance
caba is a charity supporting ICAEW accountants facing difficulty. If you are worried about how the April 2025 bill increases will affect you, either financially or mentally, get in touch to find out how we can help.