Every household bill rising in April – and how you can beat the hikes
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.
Vehicle tax reminder. Pic: iStock
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.
UK
Why I’m praying assisted dying bill passes major vote – even though it’s not going to happen in my lifetime
On Friday, the social fabric of England and Wales might be changed forever.
MPs are set to vote on the assisted dying bill and supporters are confident that they have the numbers to win.
But the hugely controversial legislation polarises opinion. Communities remain divided, and medical colleagues can’t agree.
Three royal colleges have withdrawn support for the bill in its current form. They want more time to be given for further scrutiny of the legislation.
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How will the assisted dying bill work?
Frank Sutton does not have time. When we went to Frank’s home in East Dulwich, London, last November to watch the vote unfold she already had terminal liver disease and cancer.
As the vote was passed with a majority of 55, Frank broke down in tears and said: “Finally, I can die in peace.”
Frank is unlikely to live long enough to see assisted dying introduced in England and Wales. If the legislation passes, it will be introduced in four years.
Frank now suffers from diabetes and fibromyalgia.
She said: “On top of everything I’ve got, to start developing more comorbidities, I have a massive thought in my head, which I live with every day, which is, is my body, am I on the road to the end, you know, is my body just giving up?
“I mean, I was taking morphine anyway for pain, but now I’m living on morphine, and that’s not a life that you want.”
But even as MPs prepare to vote, many important questions remain over who will take responsibility for determining a patient’s mental capacity and their prognosis. The Royal College of Psychiatrists said it was approaching Friday “with trepidation”.
Read more:
Psychiatrists criticise bill
Palpable anger as both sides of debate gather
Dr Annabel Price, the Royal College of Psychiatrists’ lead on assisted dying
Dr Annabel Price, the RCPsych’s lead on assisted dying, told Sky News: “If this bill as it stands proceeds through the rest of the parliamentary process, we as psychiatrists are left in a situation where there are so many unknowns about what is expected of us, about what patients can expect and about the safety of the process.
“We will continue to engage and there may be opportunities for reconsideration at further points in the bill. But yes, I approach this professionally with trepidation.”
The Royal College of GPs says the assisted dying process should happen outside of general practice.
Dr Susi Caesar is in favour of the bill being passed and feels it is okay for the medical community to be so divided on the issue.
She said: “I think people have the right to make their own choices and absolutely I would not want to see anybody forced into being part of this process who didn’t. Our current system is broken and this law would go a long way towards fixing it, at least for a certain group of people.”
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Psychiatrists raise assisted dying concerns
But the Royal Colleges of Physicians (RCP) also has reservations about the bill in its current form.
It says it would be hard for a panel of experts who have no connection to a patient requesting an assisted death to determine if the person is being coerced or has mental capacity.
Dr John Dean, clinical vice president at the RCP has concerns, saying: “Currently decisions clearly are made by patients but agreed by single doctors and then the social worker and psychiatrists are not meeting the patient and those that have been caring for them.
“This has to be done in keeping with modern clinical practice which is complex decisions made with patients and families by teams.”
But for patients like Frank, these concerns have not changed her mind.
She said: “I’m praying for Friday that it still goes through because, like I said, it’s not going to happen in my lifetime, but the thought that people like me who still try to look nice, who still tried to have a life and everything, that they can just have some peace of mind and they can have a weight lifted off their shoulders knowing that they’re going to be able to do it peacefully with their family.”
UK
Crucial evidence in Post Office scandal found in garage of retired computer expert after 30 years
A damning report into the faulty Post Office IT system that proceeded Horizon has been unearthed after nearly 30 years – and it could help overturn criminal convictions.
The document, known about by the Post Office in 1998, is described as “hugely significant” and a “fundamental piece of evidence” and was found in a garage by a retired computer expert.
Capture was a piece of accounting software, likely to have caused errors, used in more than 2,000 branches between 1992 and 1999.
It came before the infamous faulty Horizon software scandal, which saw hundreds of sub postmasters wrongfully convicted between 1999 and 2015.
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What is the Capture scandal?
The ‘lost long’ Capture documents were discovered in a garage by a retired computer expert who came forward after a Sky News report into the case of Patricia Owen, a convicted sub postmistress who used the software.
Adrian Montagu was supposed to be a key witness for Pat’s defence at her trial in 1998 but her family always believed he had never turned up, despite his computer “just sitting there” in court.
Mr Montagu, however, insists he did attend.
He describes being in the courtroom and adds that “at some point into the trial” he was stood down by the barrister for Mrs Owen with “no reason” given.
Adrian Montagu was supposed to be a key witness for Pat’s defence
Sky News has seen contemporaneous notes proving Mr Montagu did go to Canterbury Crown Court for the first one or two days of the trial in June 1998.
“I went to the court and I set up a computer with a big old screen,” he says.
“I remember being there, I remember the judge introducing everybody very properly…but the barrister in question for the defence, he went along and said ‘I am not going to need you so you don’t need to be here any more’.
“I wasn’t asked back.”
The ‘lost long’ Capture documents were discovered in a garage
Sky News has reached out to the barrister in Pat Owen’s case who said he had no recollection of it.
‘An accident waiting to happen’
The report, commissioned by the defence and written by Adrian Montagu and his colleague, describes Capture as “an accident waiting to happen”, and “totally discredited”.
It concludes that “reasonable doubt exists as to whether any criminal offence has taken place”.
It also states that the software “is quite capable of producing absurd gibberish”, and describes “several insidious faults…which would not be necessarily apparent to the user”.
All of which produced “arithmetical or accounting errors”.
Sky News has also seen documents suggesting the jury in Pat Owen’s case may never have seen the report.
What is clear is that they did not hear evidence from its author including his planned “demonstration” of how Capture could produce accounting errors.
But flaws were found within it
Pat Owen was convicted of stealing from her Post Office branch in 1998 and given a suspended prison sentence.
Her family describe how it “wrecked” her life, contributing towards her ill health, and she died in 2003 before the wider Post Office scandal came to light.
Her daughter Juliet said her mother fought with “everything she could”.
“To know that in the background there was Adrian with this (report) that would have changed everything, not just for mum but for every Capture victim after that, I think is shocking and really upsetting – really, really upsetting.”
Pat died before the contents of the report came to light
The report itself was served on the Post Office lawyers – who continued to prosecute sub postmasters in the months and years after Pat Owen’s trial.
‘My blood is boiling’
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‘They knew software was faulty’
Steve Marston, who used the Capture software in his branch, was one of them – he was convicted of stealing nearly £80,000 in September 1998.
His prosecution took place four months after the Capture report had been served on the Post Office.
Steve says he was persuaded to plead guilty with the “threat of jail” hanging over him and received a suspended sentence.
He describes the discovery of the report as “incredible” and says his “blood is boiling” and he feels “betrayed”.
“So they knew that the software was faulty?,” he says. “It’s in black and white isn’t it? And yet they still pressed on doing what they did.
“They used Capture evidence … as the evidence to get me to plead guilty to avoid jail.
“They kept telling us it was safe…They knew the software should never have been used in 1998, didn’t they?”
Steve says his family’s lives were destroyed and the knowledge of this report could have “changed everything”.
He says he would have fought the case “instead of giving in”.
“How dare they. And no doubt I certainly wasn’t the last one…And yet they knew they were convicting people with faulty software, faulty computers.”
Steve’s prosecution took place four months after the Capture report had been served on the Post Office
The report is now with the Criminal Cases Review Commission, the body investigating potential miscarriages of justice, which is currently looking into 28 Capture cases.
A fundamental piece of evidence
Neil Hudgell, the lawyer representing more than 100 victims, describes the report as “hugely significant”, “seismic” and a “fundamental piece of evidence”.
“I’m as confident as I can be that this is a good day for families like Steve Marston and Mrs Owen’s family,” he says.
“I think (the documents) could be very pivotal in delivering the exoneration that they very badly deserve.”
He also added that “there’s absolutely no doubt” that the “entire contents” of the “damning” report “was under the noses of the Post Office at a very early stage”.
Pat Owen
He describes it as a “massive missed opportunity” and “early red flag” for the Post Office which went on to prosecute hundreds who used Horizon in the years that followed.
Read more from Sky News:
Sir Alan Bates attacks ‘kangaroo court’ Post Office scheme
Widow received compensation letter days after his death
“It is a continuation of a theme that obviously has rolled out over the subsequent 20 plus years in relation to Horizon,” he says.
“…if this had seen the light of day in its proper sense, and poor Mrs Owen had not been convicted, the domino effect of what followed may not have happened.”
What the Post Office said
Sky News approached the former Chief Executive of the Post Office during the Capture years, John Roberts, who said: “I can’t recall any discussion at my level, or that of the board, about Capture at any time while I was CEO.”
A statement from the Post Office said: “We have been very concerned about the reported problems relating to the use of the Capture software and are sincerely sorry for past failings that have caused suffering to postmasters.
“We are determined that past wrongs are put right and are continuing to support the government’s work and fully co-operating with the Criminal Cases Review Commission as it investigates several cases which may be Capture related.”
A Department for Business and Trade spokesperson said: “Postmasters including Patricia Owen endured immeasurable suffering, and we continue to listen to those who have been sharing their stories on the Capture system.
“Government officials met with postmasters recently as part of our commitment to develop an effective and fair redress process for those affected by Capture, and we will continue to keep them updated.”
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