Millions of households will soon be hit with a load of bill increases this “awful April” with everything from council tax to water becoming more expensive.
Energy bills, broadband and mobile, and the TV licence, are also going up in price. On top of this, a hidden tax rise means you could be forking more out to the taxman every month. But there are ways to fight back and cut your costs.
The Ofgem energy price cap is rising by 6.4% from April. It means the average dual fuel household paying by direct debit will see their annual energy bill increase from £1,738 a year to £1,849 – a rise of £111 a year, or £9.25 a month. The exact amount you will pay depends on how much gas and electricity you use. This is because the Ofgem price cap does not cap your total bill, instead, it sets the maximum you can be charged for unit rates of gas and electricity, as well as the standing charges.
How to save money: The current cheapest energy fixes are 7% below the current January price cap, and therefore even cheaper than the April price cap. Do a comparison online now to see what deals are available to you. It is also worth doing a check of your home to make sure it is as energy-efficient as possible, such as checking your insulation levels in the loft and walls, and for drafts around windows and doors. Finally, check if you’re eligible for the Winter Fuel Payment or Warm Home Discount.
Council tax bills will rise again this April. Local authorities in England are allowed to increase bills by up to 5% – if they want to introduce larger rises, they have to hold a referendum. Bradford Council has been an increase of 10% already approved, while Newham and Windsor and Maidenhead will both be allowed a 9% rise. According to Government figures, the average band D council tax set by local authorities in England for 2024/25 was £2,171.
How to save money: Check if you’re eligible for a council tax discount – for example, if you’re living alone, you get 25% off your council tax bill. If you claim benefits or you’re on a low income, see if your local authority runs a Council Tax Support or Council Tax Reduction scheme. In some cases, you could be entitled to 100% off your bill. Finally, see if you can challenge your council tax band. If you’re in too high of a band, you may be due thousands of pounds back, plus lower bills going forward. But do your research first, as if you’re in too low of a council tax band, your future bills will go up.
Broadband and mobile companies must now tell customers in “pounds and pence” how much their contract will rise by each year, instead of linking it to inflation. The idea is that this gives customers more certainty about how much their bill will rise by in the future. This new rule typically applies to new customers, so if you’re on an older contract, you may still find your price rise is linked to inflation. Are you worried about Awful April? Take our poll below, if you can’t see it click here
How to save money: If you’re out of contract, compare prices to see if you can get a better deal elsewhere. Check how many minutes and texts you’re currently using, or your broadband speed, as many people pay for higher allowances that they don’t end up using. If you don’t want to leave your current provider, try haggling, and if you claim benefits, check if you can save money by signing up for a cheaper social tariff.
Water bills will also rise from April – with the average person set to see their annual cost increase by £123, around £10 a month. It means the average water and wastewater bill will rise from £480 to £603 for the next year alone. However millions of households face even steeper rises, with Southern Water customers told they will see a 47% increase, Hafren Dyfrdwy and South West Water bills rising by 32%. Thames Water customers warned they will see a 31% hike and Yorkshire Water raising bills by 29%.
How to save money: Check if you could save money with a water meter, which is a device that records the amount of water being used in your home. The general rule of thumb is, you may benefit from a water meter if you have more or the same number of bedrooms in your house than people. You should also check if you can claim free water-saving gadgets through Save Water Save Money. The gadgets include shower heads which help regulate water usage, tap inserts to regulate water flow, and cistern bags, so each flush uses less water.
Electric vehicles (EVs) will no longer be exempt from paying car tax from this April. If you buy a new EV after April 2025, you’ll pay the lowest first year rate of vehicle tax of £10 – then from the second year onward, you’ll pay £195 road tax. If your EV was registered between April 1, 2017 and March 31, 2025, then you will pay the standard rate of road tax, which is £195 a year from April 2025.
EVs, zero or low emission cars that were registered between March 1, 2001 and March 31, 2017, and emit up to 100g/km of CO2, will pay £20 a year from April. Car tax rates for some other vehicles will also rise, depending on how much CO2 they emit and the year they were manufactured.
How to save money: It is cheapest to pay for your car tax upfront, compared to splitting it into two lots of six monthly payments, or monthly payments. You can renew your road tax up to two months before it expires, so if you’re able to do this before April, you can put off any increases until 2026. You’ll need to enter your number plate online and the 11-digit reference number on your V5C log book.
The TV licence fee will rise from £169.50 to £174.50 a year from April. The price of a black and white TV licence will also rise from £57 to £58.50 a year, an increase of £1.50. You need a TV licence to watch live TV or any shows on BBC iPlayer. If you’re caught watching live TV without a TV licence, you can be fined up to £1,000.
How to save money: If you claim Pension Credit and you’re over the age of 75, then you’re entitled to a free TV licence. Or if you live in residential care or sheltered accommodation, you may be able to apply for a concessionary TV licence which costs £7.50 per room, flat or bungalow. Students who are living away from home may be covered if their parents have a TV licence, but only if they’re watching TV on a device that isn’t plugged into the mains, such as a phone, tablet or laptop. If someone in your household is blind or severely sight-impaired, you’ll get 50% off the cost of your TV licence.
Millions more people will pay more in Income Tax as the personal tax thresholds remain frozen until 2028. The basic rate of Income Tax starts at 20% for earnings above £12,570 a year, then the higher rate of 40% is paid on earnings above £50,270. Anything above £125,140 is taxed at the 45% additional rate. These thresholds have remained frozen since 2022 – so when you get a pay rise, or a better paid job, you’re being dragged into, or pushed closer to, paying a higher rate of tax, instead of these brackets moving in line with inflation. This process is known as “fiscal drag” as it generates more tax without the rate of tax being increased.
How to save money: If your company offers a salary sacrifice scheme, then you could cut your tax bill by paying more into your pension, as it reduces how much of your salary is subject to tax. If you’re married and one of you is a non-taxpayer and the other is a basic rate taxpayer, then marriage tax allowance lets the non-taxpayer give £1,260 of their personal allowance to their spouse in the current tax year.
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