April is set to bring a wave of bill hikes for UK residents, touching everything from council tax to water rates. Energy bills are just one aspect of the broader financial tightening that’s been ominously termed “awful April”.
Despite increases in the minimum wage and reports of average wages outstripping inflation, households could still feel the strain as the Cost of Living crisis continues.
Yet, it’s not all doom and gloom; there’s some light at the end of the tunnel with the minimum wage due for an uplift in April, and average wages expected to keep ahead of inflation. Benefits and tax credits tied to inflation are also set to rise by 1.7% in April.
Moreover, both the basic and new State Pension will enjoy a 4.1% increase. Here’s a rundown of eight bills that are on the up this April, reports Chronicle Live:
BBC TV licence
The cost of the annual BBC TV licence fee is set to increase from £169.50 to £174.50 starting April. The price for a black and white TV licence will go up from £57 to £58.50 a year, which is a £1.50 hike.
A TV licence is mandatory for watching live TV or any programmes on BBC iPlayer. Those caught viewing live TV without a licence could face fines of up to £1,000.
Energy bills
Turning to energy bills, the price cap – the maximum suppliers can charge per unit of energy and standing charges for those on default tariffs – is expected to rise. The updated cap is projected to hit £1,849, representing a 6.4% increase from the first quarter’s figures for 2025, according to Birmingham Live.
The average household can expect an estimated £9 monthly increase over the next three months due to this adjustment. However, actual energy bills will fluctuate based on individual consumption, geographic location, and payment methods.
This projection is revised every three months, with the next announcement scheduled for May 2025 for the July to September price cap level. The price cap level set in February 2025 will only apply to bills from 1 April to 30 June.
Broadband
Broadband customers of BT, Plusnet, EE and Vodafone are set to see their monthly prices rise by 6.4% this Spring. Meanwhile, Virgin Media customers will face a 7.5% price hike.
If you’ve recently entered into a new broadband contract, you may be subject to a fixed annual price increase of £3-3.50 per month instead. .
Annual price rises are made clear when you sign up for a new contract, so early exit fees will still apply if you leave before your contract ends. If your contract has ended, you’re likely overpaying.
However, you can switch to a new provider without charge. Many smaller providers will fix your monthly price until your contract ends.
Mobiles
Mobile networks typically increase their prices according to the Retail Prices Index (RPI) or Consumer Price Index (CPI) every year, plus 3.9%, to offset the rate of inflation and rising business costs.
Signing up for a mobile phone contract with a set monthly direct debit might still land you with a mid-contract price surge, often fluctuating between 3% and 4%, which could lead to total hikes close to 7% or 8% after an extra 3.9% is added on. Last year’s inflation rates hit the roof, reaching levels unseen in 40 years, causing some customers to struggle with phone bill increases as steep as 18% in 2023.
Fortunately, this time around, the increase is slightly more forgiving, with most mobile operators declaring a 7.9% raise.
Stamp duty
In the property market, April will see changes to Stamp Duty – buyers in England and Northern Ireland will start paying this tax on properties priced above £125,000, compared to the current cut-off of over £250,000. First-time buyers currently dodge stamp duty on dwellings costing up to £425,000 but be warned – this threshold is due to drop to a mere £300,000.
For those just beginning their quest for a new home, chances are slim you’ll conclude your deal before these adjustments take effect.
Council tax
On the local level, council tax bills in England are gearing up for an upswing, potentially by up to 5% next April, as per existing government limits. In Parliament, Communities Minister Matthew Pennycook backed the cap, calling it the “right threshold” facing councils amidst economic hurdles.
In the coming year, average households are bracing for a council tax hike of over £100, a surge that exceeds the rate of inflation. According to Pennycook, the government is set to rake in an estimated £1.8 billion in revenue from council tax for the 2025/26 financial year.
The Tories, however, have accused Labour of leaving a “black hole” in council finances. At present, local authorities in England tasked with social care duties can increase tax rates by up to 5%, while other councils can impose rises of 3%.
Any councils wishing to exceed these limits must gain government consent or conduct a public poll.
Water
When considering utility costs, families in England and Wales will see their water bills go up by an average of £10 per month. Southern Water customers may face an annual charge increase of 47% to £703, whereas Anglian Water’s charges could rise by 19%, leading to a bill of £626.
Water companies argue that the increased charges are vital to fund investments in outdated infrastructure such as sewage systems, and for constructing bonus reservoirs.
Further north, water bills are poised to jump by nearly 10%. Operated as a state-owned company, Scottish Water has indicated that significant investment is mandatory to cope with severe weather conditions like “drought and intense rainfall” resulting from climatic changes.
Cars
From April, car owners with vehicles registered after April 2017 will see a standard road tax increase of £5, bringing the annual total to £195. The exact tax rate will depend on the year of registration and the type of fuel the vehicle uses.
In a significant policy change, electric vehicles (EVs), which have traditionally been exempt from tax, will now be included. EVs registered from April 2025 will be subject to the lowest band of £10 in the first year, before moving into the standard tax bracket.
This change in the standard rate will also apply to EVs first registered after April 2017.