There’s been a raft of announcements in recent months that mean higher bills for consumers – but something you may not have noticed is that many of the price increases will hit at once.

On 1 April, coinciding with the new financial year, households will face higher bills for:

• Energy
• Broadband, mobile phone and TV licence
• Car tax
• Water
• Stealth taxes
• Stamp duty
• Council tax

We have outlined what’s coming – and how you could potentially beat the hikes – in last week’s Saturday long-read.

Read the latest Money news here

ENERGY BILLS

The average annual energy bill will rise to £1,849 as industry regulator Ofgem increases the price cap for the third time in a row.

The new figure represents a 6.4% a year – or £9.25 per month – increase in the typical sum the vast majority of households face paying for gas and electricity when using direct debit.

You can read more about the changes and why they’re happening here.

Only those on fixed-rate deals – around 11 million homes – will see no change until their current term expires. An extra four million homes have fixed the cost of energy units since November, Ofgem said.

Standing charges – daily fixed fees to connect to a gas and electricity supply which vary by region – are also rising for gas while dropping for electricity, but it depends on where you live.

So should you fix?

Consumer expert Martin Lewis says that, based on where energy prices are currently at: “If you find a fix for up to 3% more than the current (January to March) or 3% less than the new (April to June) price cap, it’s predicted you’ll save over the year compared with staying on the price cap.”

The best deal currently on the market is with Outfox the Market, which is offering a 12-month fix for 7.4% less than January’s cap and 12.9% less than April’s.

EDF is currently offering a no-exit fee fix, and Octopus is doing the same for existing customers – so if the maths work for you, these could be risk-free options.

We spoke to Emily Seymour, Which? energy editor, about switching.

“There’s no ‘one size fits all’ approach when it comes to fixing an energy deal as it will all depend on your individual circumstances,” said Seymour.

“For example, if you have an electric vehicle, you might want to look for a tariff which offers cheaper electricity overnight to charge your car.

“As a rule of thumb, we’d recommend looking for deals close to the current price cap, not longer than 12 months and without significant exit fees.”

Other help

The warm home discount provides a £150 annual reduction on energy bills.

Those wanting to receive the payment must be getting the guarantee credit element of pension credit or be on a low income with high energy costs.

The government advises: “If you’re eligible, your electricity supplier will apply the discount to your bill. The money is not paid to you.

“You’ll usually get the discount automatically if you’re eligible. You only need to apply if you’re on a low income in Scotland – contact your energy supplier to apply.”

Those on pension credit will also be eligible for the winter fuel allowance later this year – this is worth up to £150.

BROADBAND AND MOBILE

While Ofcom’s new rules banning inflation-linked contracts came into effect in January, many consumers will be on older contracts that will still see a price rise linked to inflation.

This is causing confusion among customers, so for overall clarity: Uswitch says this April’s rises are expected to add an average of £21.99 annually for those on inflation-linked contracts and up to £42 a year for those on newer “pounds and pence” plans that are subject to fixed increases.

How do you know which contract you have?

Many providers started putting customers on fixed increase contracts in 2024 – so if you started a new broadband contract recently, you may be subject to a pounds and pence price hike.

These are the dates the providers started introducing them…

• BT/EE/Plusnet: Contract started on or after 10 April 2024
• Vodafone: Contract started on or after 2 July 2024
• TalkTalk: Contract started on or after 12 August 2024
• Three Broadband: Contract started on or after 1 September 2024
• Virgin Media: Contract started on or after 9 January 2025

So if you signed up for a deal on any of the above after those dates, you should be on a fixed annual increase – but you’ll want to check your individual policy.

Here’s an overview of the hikes being implemented by major providers…

Consider switching

You might be able to avoid the rises by switching provider as cheaper deals are often available to new customers.

You should check to see if you’re out of contract first, or what the exit penalty may be.

Research by Which? shows switching providers when you’re out of contract could cut bills by up to £235 annually.

If you don’t want to leave your provider, you could also call them and try to haggle down your monthly cost.

Several broadband providers have social tariffs available, helping those on benefits access an internet connection at a lower monthly price.

According to Uswitch, two-thirds of financially vulnerable households are unaware that low-income broadband tariffs exist.

Bundling?

You may be able to get cheaper prices by bundling your phone, internet and TV services – though you need to read the small print as exit fees can be significant.

TV LICENCE

The cost of a TV licence will also go up by £5 to £174.50

The rise comes after a £10.50 rise brought the charge to £169.50 in April last year.

If you’re 75 or over and you get pension credit, or you live with a partner who does, you qualify for a free TV licence.

You can apply for it here or by calling TV Licensing on 0300 790 6071.

Those in residential care or sheltered accommodation can get a licence for £7.50, while those registered blind or living with someone who is can get a 50% discount.

TRAIN FARES

Train fares in England have increased by 4.6% as of 2 March. Railcards are also going to become more expensive, despite the record-low reliability of services.

The Welsh government matched Westminster’s cap, while Transport for Wales is applying various increases to its unregulated fares.

Meanwhile, the Scottish government will increase all ScotRail fares by 3.8% from 1 April.

One of the best ways to beat the price hikes is by getting a railcard – and they’re not just for traditional concession groups. We outlined all the different railcards here…

How can I use a railcard to save money on my train fare?

How to beat the system

Mark Smith, who set up The Man in Seat 61 blog to help people travel cheaper and better, told Money there were various “traps” people fell into.

Tickets are normally released around 12 weeks in advance, but initially you may only see more expensive Off-Peak and Anytime tickets.

There’s often a gap of a week or two before reservations open and the much cheaper Advance fares go on sale.

Smith says you can save money by purchasing any time before your day of travel – a £30 or £40 Advance fare will then turn into an £68.60 Off-Peak one-way or a £184.70 Anytime, for example.

If you are forced to travel at peak times you should consider split ticketing. For example:

If you’re travelling at 5pm on a Monday, instead of getting a peak ticket all the way from London to Manchester, get a peak Anytime ticket to Milton Keynes and then an Off-Peak from Milton Keynes to Manchester.

Read more about split ticketing here

One final trap to avoid was exposed by a Which? investigation last year that found train station ticket machines could be much, much more expensive than buying online.

CAR TAX

Also going up is the standard rate of road tax for cars registered after April 2017.

The flat rate cost of car tax from April 2025 is £195 (so an increase of £5).

Hybrid cars get a small discount (£10) but if your vehicle had a list price of more than £40,000 when it was first sold then you may also be liable for the “luxury car tax” fee, which adds £410 to your annual costs.

You may pay less if your car was first used before 2017 – the exact amount will depend on the year a car was registered and the type of fuel it consumes.

Perhaps a bigger change is that electric vehicles (EVs) will also no longer be exempt from tax – those registered from April 2025 will pay the lowest rate of £10 in the first year, then move to the standard rate.

Feeling confused? Autotrader gives this example…

It’s April 2025 and you’re choosing between Porsche Macans, petrol or electric (lucky you). A basic petrol Macan will mean you pay £4,680 in car tax in the first year, whereas with the electric one, you’ll pay £10. After that, they’ll both go to the standard rate (£195 per year) plus the £410 Expensive Car Supplement for five years.

WATER

Possibly the most controversial of the April changes is the sizeable increase to water bills.

Bills are going up in a development that has been blamed on problems including higher borrowing costs on large levels of debt, creaking infrastructure and record sewage outflows into waterways.

However, it was reported last March that England’s private water firms made £1.7bn in pre-tax profits – up 82% since 2018-19 – prompting renewed calls for the utility to be renationalised.

The average annual water bill will rise by 26% or £123 in the next financial year alone, figures showed.

Water UK said the increases across households would also vary, depending on circumstances such as water use and whether a water meter was installed.

Get the full story here…

Water bills in England and Wales to rise by average of £10 per month

All water companies offer a social tariff for eligible customers that reduces the cost of water bills – check with your provider to see if you are eligible.

Should you get a water meter?

Martin Lewis has some simple advice on this one: if you have more bedrooms than people in the house, a water meter is likely to save you money.

If your water company says it can’t give you a meter, you can asked for an “assessed charge” – which can offer the best of both worlds. Ofwat explains yours rights here.

STAMP DUTY

We’ve been talking a lot about this in recent weeks.

Changes come into force from the 1 April and affect those in England and Northern Ireland.

The current “nil rate” band (at which you start paying) for first-time buyers will reduce from £425,000 to £300,000, while other home-buyers will also see a reduction from £250,000 to £125,000.

In London, an average first-time buyer could end up paying more than £11,000 extra from April, Santander said.

COUNCIL TAX

Some 85% of top-tier council authorities in England are expecting to increase council tax by just under 5%.

Additionally, Bradford, Newham, Birmingham, Somerset, and Windsor and Maidenhead have been given special permission by the government to bypass the 4.99% cap – meaning they could raise council tax by more.

Read more:
The town bracing for UK’s biggest council tax rise of almost 16%

Our data and forensics unit has been taking a look at how council finances have deteriorated here.

With the majority of councils increasing their council tax by the maximum amount this month, some households could see their bills jump significantly.

Are you eligible for a discount?

You may qualify for extra support or a reduction in your council tax bill, for example if you’re on a low income, a student, living alone or are disabled.

Another option is to have your council tax bill spread over 12 months instead of the usual 10 – this won’t save you money but could help you to budget, if your council offers this option.

You could also get your home’s council tax band reviewed, which may entitle you to a refund if you’re in the wrong band. However, you should be aware the review could lead to your property being put in a higher band.

STEALTH TAX

Expecting a pay rise?

You may be surprised to see how little translates to your pay cheque.

That’s because frozen income tax thresholds could mean that some people get pushed into higher tax brackets as their wage goes up.

Others could be pushed into paying tax on their savings by breaching the personal savings allowance – which is £1,000 tax-free interest for basic rate taxpayers.

WHAT TO DO IF YOU’RE STRUGGLING TO PAY BILLS

If you’re having trouble paying your bills, there’s lots of support out there.

Emily Seymour, from Which?, told Money: “If you’re struggling to afford any household bills such as energy, council tax, water and telecoms, the first step is always to speak to your provider and see what help is available.

“It’s important to remember that energy companies are obliged to help you if you tell them you are struggling to pay and will not disconnect you if you miss a bill payment. You could ask for a review of your payments, a reduction in your payments or a payment break, more time to pay, and access to hardship funds.

“For water and broadband, there are cheaper social tariffs available so it’s worth speaking to your provider to see if you qualify.

“If you don’t qualify for a broadband or mobile social tariff, our research shows you could still make big savings by switching providers – especially if you’re with a firm that hikes prices annually – so it’s always a good idea to compare deals at the end of your contract to find the best offer for you.”

You can check your eligibility for benefits on the government website which may allow you to access lower tariffs and contact your local council to see if you’re able to get support with water and energy bills.

There’s also charities offering help, including Citizens Advice and National Debtline, which are on hand to provide free, impartial advice.