Household costs across the UK are set to rise in April 2025, with an average increase of £123 per year. Water bills, council tax, energy prices, and broadband costs are all going up, putting additional strain on household budgets.
Understanding these changes and taking proactive financial steps can help reduce their impact. This guide explains why these costs are increasing, how much you’ll pay, and what you can do to manage your expenses.
Breakdown of Cost Increases
| Aspect | Details |
|---|---|
| Water Bills | Up £123 per year, bringing the average bill to £603. Some regions will see even higher increases. |
| Council Tax | Many areas will see hikes, with some councils increasing rates by up to 10%. |
| Energy Bills | Prices expected to rise by £21 annually from January, with further increases likely in April. |
| Broadband & TV | Providers like Sky are increasing bills by up to £38 per year from April 1st. |
Why Are Household Costs Rising?
The increases in household costs are driven by several key factors:
- Water Bills: Companies are raising prices to fund a £104 billion investment program to upgrade infrastructure, including building new reservoirs and treatment plants.
- Council Tax: Many councils are increasing rates to cover financial deficits and fund social care and education services.
- Energy Bills: Higher wholesale gas and electricity prices are driving up household energy costs.
- Broadband & TV: Telecom providers are adjusting prices due to inflation and operational costs.
How Much More Will You Pay?
Here’s a closer look at how these changes will impact households:
Water Bills – Up by £123 per Year
From April 1, 2025, water bills in England and Wales will increase by an average of £10 per month, the highest rise in 36 years.
Regional Variations:
- Southern Water customers will see the biggest increase at 47%.
- Hafren Dyfrdwy customers will experience a 32% rise.
- SES Water customers will actually see a 2% reduction.
Council Tax – Up to 10% Increase
Several councils have been granted permission to exceed the standard 5% cap on council tax hikes.
Notable increases:
- Bradford: 10% increase – £195 extra per year (Band D property).
- Newham & Windsor & Maidenhead: 9% increase.
- Birmingham, Trafford & Somerset: 7.5% increase.
These increases are aimed at stabilizing local government finances and addressing rising social care demands.
Energy Bills – Up by £21 Annually (More Increases Expected in April)
- The domestic energy price cap increased by 1.2% in January, adding £21 to annual bills.
- Analysts predict further increases in April, pushing the average energy bill to £1,785 per year.
Broadband & TV Bills – Up by £38 per Year
From April 1st, telecom providers such as Sky will increase broadband and TV subscription costs by up to £38 per year.
- 2024 Increase: 6.7%.
- 2023 Increase: 8.1%.
- Many providers raise their prices annually, so further hikes are likely in 2026.
How to Manage Rising Household Costs
While these increases can be frustrating, there are several steps you can take to reduce your household expenses:
1. Review Your Budget
- Look at your monthly expenses and identify areas where you can cut back or adjust spending.
- Prioritise essential bills and reduce non-essential spending where possible.
2. Seek Discounts & Support
Water Bill Support:
- Check if you qualify for social tariffs or discounts from your water provider.
- Some water companies offer assistance programs for low-income households.
Council Tax Discounts:
- Single occupants can get a 25% discount.
- Some low-income households, pensioners, and disabled individuals may qualify for reductions or exemptions.
- Check if you’ve been overpaying due to an incorrect council tax band—some households can claim refunds.
Energy Savings:
- Compare energy tariffs to see if switching providers could save you money.
- Apply for grants or financial assistance if you’re struggling with energy bills.
- Implement energy-saving measures like LED bulbs and smart thermostats.
3. Negotiate with Service Providers
- Contact your broadband, TV, and mobile providers to negotiate lower prices or switch to cheaper plans.
- Many companies offer loyalty discounts or price-matching for existing customers.
4. Stay Informed
- Keep track of future price changes and government support schemes.
- Sign up for alerts from your local council and energy provider to receive updates on new assistance programs.
