What UK bills are increasing in April 2025 and what can I do about it?
In April 2025, UK residents will likely see an increase in their bills, ranging from energy hikes to water bill rises. While this is dependent on your provider and the effects differ from person to person, the news is still concerning, especially for those already struggling financially. If you’re worried about the bill increases in April, Tom Barrett, caba’s financial support team manager, breaks down everything you need to know and what you can do to prevent getting into financial difficulty.
why are UK bills increasing in April 2025?
The biggest factor is inflation; rising costs across fuel, wages, and services are pushing prices up. The energy price cap is increasing by 6.4% due to higher wholesale energy costs, meaning the average annual bill will rise by £111. Water bills are also set to jump, with suppliers passing on the cost of a £104 billion infrastructure upgrade to improve water quality and sewage systems.
Local councils are facing budget gaps, so many are increasing council tax by up to 4.99% to keep essential services running. With some councils such as Bradford being permitted to increase theirs by 9.99%.
Meanwhile, road tax is going up, and electric vehicles (EVs) will no longer be exempt, adding extra costs for drivers. If you have a broadband or mobile contract signed before April 2024, expect an increase of around 6.4%, as many providers link their prices to inflation.
For homeowners, stamp duty thresholds will drop, meaning higher upfront costs for buyers. With the Bank of England predicting inflation to peak at 3.7% later in the year, the rising cost of living remains a challenge.
what bills are rising?
As April 2025 approaches, several household bills are set to increase, making it even more important to plan ahead. Here’s a breakdown of the key areas affected:
water bills
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Who will it affect? All UK households connected to a water supply.
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How much will it go up by? Water bills are expected to rise by an average of £10 per month, depending on your provider.
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Why? Water companies are investing £104 billion into upgrading infrastructure, improving water quality, and reducing sewage pollution.
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What can I do? Check if you’re eligible for a social tariff or discount scheme offered by your water provider. Installing a water meter could also help lower costs if you use less than the average household.
energy bills
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Who will it affect? Those on standard variable tariffs will see the biggest impact.
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How much will it go up by? The energy price cap will increase by 6.4%, adding an estimated £111 to the average annual bill.
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Why? Wholesale energy costs are rising, driving up household tariffs.
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What can I do? Consider switching to a fixed-rate deal if it offers better rates. Check if you're eligible for the Warm Home Discount or other government support schemes. Some energy suppliers also have charitable trust funds that can assist with paying off arrears.
council tax
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Who will it affect? Most UK households, unless exempt.
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How much will it go up by? Up to 4.99%, depending on your local council.
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Why? Councils are increasing rates to cover budget gaps and maintain essential services.
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What can I do? You may be eligible for a single-person discount, a council tax reduction scheme, or discretionary council tax reduction -- check with your local authority.
car tax (Vehicle Excise Duty)
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Who will it affect? Petrol, diesel, and electric vehicle (EV) owners.
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How much will it go up by? The standard rate for most cars will rise in line with inflation, while EVs will no longer be exempt from road tax.
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Why? The government is introducing road tax for EVs as part of a broader tax reform.
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What can I do? Check if switching to a low-emission car could reduce your tax rate. Compare insurance providers for savings.
broadband, mobile and TV licence fees
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Who will it affect? Customers with contracts signed before April 2024.
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Why? Many providers tie their price rises to inflation.
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What can I do? Use comparison tools like Uswitch to find better deals. If your contract is ending soon, negotiate a better rate before renewing. Check with your supplier whether they operate a Social Tariff.
stamp duty
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Who will it affect? Homebuyers in England and Northern Ireland (first time buyers are excluded).
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How much will it go up by? The government is reducing the stamp duty threshold, meaning more buyers will have to pay duty on property purchases.
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Why? This is part of a wider tax reform to boost government revenue.
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What can I do? If you’re planning to buy a home soon, check if you can complete before the threshold change to save on costs.
hidden tax rises
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Several indirect tax increases, such as higher alcohol duties and frozen income tax thresholds, mean you could be paying more tax without realising.
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What can I do? Review your finances and take advantage of ISA allowances, salary sacrifice schemes, or tax relief opportunities to reduce your taxable income.
With so many rising costs, it’s more important than ever to stay informed, plan ahead, and seek financial support where possible. Read on to find out how you can prepare financially.
what can I do to prepare financially for the April increases?
find available grants and benefits
If you're struggling with the rising cost of living, you may be eligible for financial support through grants and benefits. Checking what's available doesn’t need to be complicated. Here's how you can find out:
Use this tool to find available grants based on your circumstances, whether for energy bills, essential living costs, or unexpected financial emergencies.
See if you're entitled to benefits that could help with your bills, rent, or other essential expenses. Even small amounts can make a big difference and may also qualify you for other payments such as the Winter Fuel Payment.
caba's means-tested energy payment might entitle you to a grant to cover or help with your energy bills. Find out if you’re eligible – but be quick, applications are due to close in April 2025.
essential living or appliance repair grants
If you need financial support for essential items like a fridge, washing machine, or cooker, you may be able to access a one-off grant to help cover the cost.
If you or a loved one require additional care, financial support may be available to help with the extra costs.
create a budget
It may sound obvious, but creating a budget can drastically help you manage and track your finances. Often, creating budgets can highlight non-essential expenses that regularly eat into your wallet, while still allowing you to free up space for treats or more luxury items. Use our budgeting planners to understand what you can spend each month and avoid any unexpected financial surprises.
compare and switch providers
One of the simplest ways to cut costs is by reviewing your providers and switching to better deals. Even small savings on energy, insurance, or broadband can add up over time.
energy
Use the MoneySavingExpert fix or variable calculator to determine whether fixing your energy tariff is the right move or if a variable rate could save you more.
car tax & insurance
Comparison sites like Compare the Market can help you find cheaper car insurance, while black box insurance policies could lower costs for younger or low-mileage drivers.
phone & Wi-Fi
Use Uswitch to compare broadband and mobile phone plans, ensuring you're on the best deal for your usage.
By regularly checking and switching, you can stay ahead of rising costs and keep more money in your pocket.
review bills and subscriptions
Ahead of the increase in April, review your bills, subscriptions and other outgoings that you may not need or use. In today’s streaming-first climate, it’s not unusual to have accounts with multiple streaming providers, which quickly adds up. Subscription services often increase their monthly rates – and it can be easy to miss the memo. Check what streaming services you are using. Some offer you the ability to pause or freeze memberships, or to change your subscription to include ads at a reduced cost.
There are also multiple third-party services that can help you manage subscriptions seamlessly, such as Bobby and SortBilly, alleviating some of the stress that comes with it.
check for council tax exemptions or reductions
You may be eligible for council tax exemptions or reductions based on income, disabilities, or single occupancy. To find out if you qualify for a reduction, get in touch with your local council. You’ll be asked questions about your income and circumstances, and they will modify your bill if you meet the requirements.
manage your mental health
Rising bills can shake your sense of stability, adding uncertainty and discomfort to a life that may currently feel secure. This is sure to conjure feelings of stress and anxiety. With your mind focussing on managing your finances, it might be easy to push mental health concerns to the backburner, but as well as being detrimental to your overall wellbeing, this can make your financial situation worse.
Financial anxiety can lead to impulse spending, avoidance of debt, bills or financial planning, and a reliance on short-term fixes. Ensure you prioritise your mental wellbeing and explore ways to manage your financial stress, such as practising mindfulness, taking care of your physical wellbeing, or reaching out for support from counsellors.
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.