Bills: average UK household water, energy, council tax, utility bills going up - how much are they rising?

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Big changes are coming this April - higher bills, new taxes, and fresh rules đŸ“ˆ
  • Major household bills are rising from April 1, including council tax, energy, and water
  • Broadband, phone, and TV licence costs are also increasing, with new rules on price transparency
  • Road tax is going up, and electric vehicles will no longer be exempt from 2025
  • Stamp duty thresholds are changing, meaning more homebuyers will pay the tax
  • And a freeze on income tax thresholds until 2028 will pull millions into higher tax brackets

April marks the start of a new financial year, and while that may sound like something of a fresh start full of hope and optimism, for many it could be quite the opposite.

The first day of April is when a lot of annual price adjustments and regulatory changes are made by the Government and other public bodies, including those for energy, council tax, and insurance.

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Households across Britain are preparing for widespread bill increases on everything from water to internet charges, which could see those on the lowest incomes struggling to make ends meet.

Here are the seven household bills and charges that are going up this April:

(Photo: Justin TALLIS / AFP) (Photo by JUSTIN TALLIS/AFP via Getty Images)(Photo: Justin TALLIS / AFP) (Photo by JUSTIN TALLIS/AFP via Getty Images)
(Photo: Justin TALLIS / AFP) (Photo by JUSTIN TALLIS/AFP via Getty Images) | AFP via Getty Images

Broadband, Phone and TV Licence

New rules introduced by the telecoms regulator this year require mobile and broadband providers to inform customers "in pounds and pence" about any price increases and when they will take effect.

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These rules generally apply only to new customers, so the impact of any price rise depends on when you took out your contract. But prices typically increase around this time of year.

The cost of a TV licence is also increasing by £5 to £174.50, while a black-and-white TV licence will rise by £1.50 to £58.50.

Car Tax

The standard road tax rate for cars registered after April 2017 is increasing by £5 to £195 per year - the amount you pay may vary if your car was first registered before 2017, as road tax depends on the vehicle’s registration year and fuel type.

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Another major change is that electric vehicles (EVs) will no longer be exempt from tax. From April 2025, newly registered EVs will pay £10 in the first year before moving to the standard rate. The standard rate will also apply to EVs first registered after April 2017.

The expensive car supplement is also being introduced. Commonly referred to as the luxury car tax, it applies to vehicles with a list price exceeding £40,000.

Owners of these high-value vehicles must pay an additional annual charge on top of the standard VED rate for the second to sixth years after registration.

From April 1, this supplement will rise to £425 per year, making vehicle ownership significantly more costly for those affected.

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Council Tax

In England, local authorities responsible for social care can raise council tax by up to 4.99% each year without requiring a referendum or local vote (smaller councils without social care responsibilities can increase bills by up to 2.99%).

But this year, six areas have been granted permission to exceed this cap to avoid financial difficulties, including potential bankruptcy.

The Government justified allowing these councils to implement increases above the referendum threshold by saying they have low levels of council tax. The authorities implementing the largest percentage increases are:

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  • Bradford (Metropolitan Borough) – 9.99%
  • Newham (London Borough) – 8.99%
  • Windsor & Maidenhead (Unitary Authority) – 8.99%
  • Birmingham (Metropolitan Borough) – 7.49%
  • Somerset (Unitary Authority) – 7.49%
  • Trafford (Metropolitan Borough) – 7.49%

In Scotland, council tax rates have been largely frozen or subject to limited increases since 2007, but they are now set to rise - in some areas by as much as 10%. In Wales, council tax rates will rise by between 5% and 9.2%

Northern Ireland operates a domestic rates system instead of council tax. All councils in the region have announced district rate increases for the coming year.

Energy

From April 1, the annual energy bill for a typical household using gas and electricity will increase by £111, reaching £1,849, after regulator Ofgem once again raised the energy price cap due to higher wholesale costs and inflation.

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The price cap, which is reviewed every three months, sets a limit on how much suppliers can charge per unit of gas and electricity. But it doesn’t cap the total bill, so higher usage means higher costs.

The cap affects 22 million homes in England, Wales, and Scotland. Standing charges, which are fixed fees for connecting to gas and electricity supplies, will rise for gas but fall for electricity, depending on your region.

Ofgem - along with a host of financial experts, including Martin Lewis - is advising households to consider switching to a fixed tariff for greater price stability.

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‘Hidden’ Taxes

The Government has extended the freeze on income tax and National Insurance thresholds until 2028, continuing a policy introduced by the previous administration. Often referred to as a "stealth tax," this measure isn't labelled as a direct tax increase.

But it effectively raises taxes through "fiscal drag," where wage increases push more people into higher tax brackets over time. The new tax year begins on Monday, April 6.

According to the Government’s financial watchdog, by 2028-29, nearly four million more people will be paying income tax, and an additional three million will have moved into the higher tax bracket due to the frozen thresholds.

Stamp Duty

In England and Northern Ireland, the threshold for paying stamp duty on property purchases is decreasing from £250,000 to £125,000.

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First-time buyers, who previously paid no stamp duty on homes up to £425,000, will now see this exemption limit reduced to £300,000.

Water

Water bills for households in England and Wales are set to increase by an average of £10 per month, although the rise varies significantly depending on the water company that supplies your home.

For instance, Southern Water customers will see their annual bills jump by 47% to £703, while Anglian Water customers will pay 19% more, totalling £626.

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Factors such as whether a household has a meter and its water usage will also influence the increase. Bills are being front-loaded for the next five years, meaning this year will see the largest rise.

Meanwhile, sewage continues to spill into our rivers and seas; water companies in England and Wales have said the increases are necessary to invest in aging infrastructure, including sewage systems, and to build more reservoirs.

In Scotland, water bills are rising by nearly 10%. Scottish Water said the increase is essential to address challenges caused by climate change, such as droughts and intense rainfall.

In Northern Ireland, residents are not billed for water, as the system is funded by the devolved government.

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With so many changes hitting household budgets this April, we want to hear from you. How will these increases affect you? Are you making any adjustments to cope with rising costs? Share your thoughts, tips, and concerns in the comments section.

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