Every household bill rising in April – and how you can beat the hikes

Published

4 weeks ago

April 1, 2025

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Many household bills are rising from today – ranging from energy prices and council tax to mobile phone contracts and broadband.

Coinciding with the new financial year, from today there will be higher bills for:

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

The Sky News Money blog outlined the hikes – and how you could potentially beat them – in one of its long read features below.

You can read more from the Money blog as well as reactions to today’s increased bills here.

Cost of living calculator: See how much your bills are going up

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 today.

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.

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

Changes come into force from today 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 set 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.

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.

Business

Bank chiefs to Reeves: Ditch ring-fencing to boost UK economy

Published

1 day ago

April 26, 2025

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Bank chiefs to Reeves: Ditch ring-fencing to boost UK economy

The bosses of four of Britain’s biggest banks are secretly urging the chancellor to ditch the most significant regulatory change imposed after the 2008 financial crisis, warning her its continued imposition is inhibiting UK economic growth.

Sky News has obtained an explosive letter sent this week by the chief executives of HSBC Holdings, Lloyds Banking Group, NatWest Group and Santander UK in which they argue that bank ring-fencing “is not only a drag on banks’ ability to support business and the economy, but is now redundant”.

The CEOs’ letter represents an unprecedented intervention by most of the UK’s major lenders to abolish a reform which cost them billions of pounds to implement and which was designed to make the banking system safer by separating groups’ high street retail operations from their riskier wholesale and investment banking activities.

Their request to Rachel Reeves, the chancellor, to abandon ring-fencing 15 years after it was conceived will be seen as a direct challenge to the government to take drastic action to support the economy during a period when it is forcing economic regulators to scrap red tape.

It will, however, ignite controversy among those who believe that ditching the UK’s most radical post-crisis reform risks exacerbating the consequences of any future banking industry meltdown.

In their letter to the chancellor, the quartet of bank chiefs told Ms Reeves that: “With global economic headwinds, it is crucial that, in support of its Industrial Strategy, the government’s Financial Services Growth and Competitiveness Strategy removes unnecessary constraints on the ability of UK banks to support businesses across the economy and sends the clearest possible signal to investors in the UK of your commitment to reform.

“While we welcomed the recent technical adjustments to the ring-fencing regime, we believe it is now imperative to go further.

“Removing the ring-fencing regime is, we believe, among the most significant steps the government could take to ensure the prudential framework maximises the banking sector’s ability to support UK businesses and promote economic growth.”

Work on the letter is said to have been led by HSBC, whose new chief executive, Georges Elhedery, is among the signatories.

His counterparts at Lloyds, Charlie Nunn; NatWest’s Paul Thwaite; and Mike Regnier, who runs Santander UK, also signed it.

While Mr Thwaite in particular has been public in questioning the continued need for ring-fencing, the letter – sent on Tuesday – is the first time that such a collective argument has been put so forcefully.

The only notable absentee from the signatories is CS Venkatakrishnan, the Barclays chief executive, although he has publicly said in the past that ring-fencing is not a major financial headache for his bank.

Other industry executives have expressed scepticism about that stance given that ring-fencing’s origination was largely viewed as being an attempt to solve the conundrum posed by Barclays’ vast investment banking operations.

The introduction of ring-fencing forced UK-based lenders with a deposit base of at least £25bn to segregate their retail and investment banking arms, supposedly making them easier to manage in the event that one part of the business faced insolvency.

Banks spent billions of pounds designing and setting up their ring-fenced entities, with separate boards of directors appointed to each division.

More recently, the Treasury has moved to increase the deposit threshold from £25bn to £35bn, amid pressure from a number of faster-growing banks.

Sam Woods, the current chief executive of the main banking regulator, the Prudential Regulation Authority, was involved in formulating proposals published by the Sir John Vickers-led Independent Commission on Banking in 2011.

Legislation to establish ring-fencing was passed in the Financial Services Reform (Banking) Act 2013, and the regime came into effect in 2019.

In addition to ring-fencing, banks were forced to substantially increase the amount and quality of capital they held as a risk buffer, while they were also instructed to create so-called ‘living wills’ in the event that they ran into financial trouble.

The chancellor has repeatedly spoken of the need to regulate for growth rather than risk – a phrase the four banks hope will now persuade her to abandon ring-fencing.

Britain is the only major economy to have adopted such an approach to regulating its banking industry – a fact which the four bank chiefs say is now undermining UK competitiveness.

“Ring-fencing imposes significant and often overlooked costs on businesses, including SMEs, by exposing them to banking constraints not experienced by their international competitors, making it harder for them to scale and compete,” the letter said.

“Lending decisions and pricing are distorted as the considerable liquidity trapped inside the ring-fence can only be used for limited purposes.

“Corporate customers whose financial needs become more complex as they grow larger, more sophisticated, or engage in international trade, are adversely affected given the limits on services ring-fenced banks can provide.

“Removing ring-fencing would eliminate these cliff-edge effects and allow firms to obtain the full suite of products and services from a single bank, reducing administrative costs”.

In recent months, doubts have resurfaced about the commitment of Spanish banking giant Santander to its UK operations amid complaints about the costs of regulation and supervision.

The UK’s fifth-largest high street lender held tentative conversations about a sale to either Barclays or NatWest, although they did not progress to a formal stage.

HSBC, meanwhile, is particularly restless about the impact of ring-fencing on its business, given its sprawling international footprint.

“There has been a material decline in UK wholesale banking since ring-fencing was introduced, to the detriment of British businesses and the perception of the UK as an internationally orientated economy with a global financial centre,” the letter said.

“The regime causes capital inefficiencies and traps liquidity, preventing it from being deployed efficiently across Group entities.”

The four bosses called on Ms Reeves to use this summer’s Mansion House dinner – the City’s annual set-piece event – to deliver “a clear statement of intent…to abolish ring-fencing during this Parliament”.

Doing so, they argued, would “demonstrate the government’s determination to do what it takes to promote growth and send the strongest possible signal to investors of your commitment to the City and to strengthen the UK’s position as a leading international financial centre”.

Business

Post Office to unveil £1.75bn banking deal with big British lenders

Published

2 days ago

April 25, 2025

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Post Office to unveil £1.75bn banking deal with big British lenders

The Post Office will next week unveil a £1.75bn deal with dozens of banks which will allow their customers to continue using Britain’s biggest retail network.

Sky News has learnt the next Post Office banking framework will be launched next Wednesday, with an agreement that will deliver an additional £500m to the government-owned company.

Banking industry sources said on Friday the deal would be worth roughly £350m annually to the Post Office – an uplift from the existing £250m-a-year deal, which expires at the end of the year.

Money latest: ’14 million Britons on course for parking fine this year’

The sources added that in return for the additional payments, the Post Office would make a range of commitments to improving the service it provides to banks’ customers who use its branches.

Banks which participate in the arrangements include Barclays, HSBC, Lloyds Banking Group, NatWest Group and Santander UK.

Under the Banking Framework Agreement, the 30 banks and mutuals’ customers can access the Post Office’s 11,500 branches for a range of services, including depositing and withdrawing cash.

The service is particularly valuable to those who still rely on physical cash after a decade in which well over 6,000 bank branches have been closed across Britain.

In 2023, more than £10bn worth of cash was withdrawn over the counter and £29bn in cash was deposited over the counter, the Post Office said last year.

A new, longer-term deal with the banks comes at a critical time for the Post Office, which is trying to secure government funding to bolster the pay of thousands of sub-postmasters.

Reliant on an annual government subsidy, the reputation of the network’s previous management team was left in tatters by the Horizon IT scandal and the wrongful conviction of hundreds of sub-postmasters.

A Post Office spokesperson declined to comment ahead of next week’s announcement.

Business

Trump trade war: How UK figures show his tariff argument doesn’t add up

Published

2 days ago

April 25, 2025

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Trump trade war: How UK figures show his tariff argument doesn't add up

As Chancellor Rachel Reeves meets her counterpart, US Treasury secretary Scott Bessent to discuss an “economic agreement” between the two countries, the latest trade figures confirm three realities that ought to shape negotiations.

The first is that the US remains a vital customer for UK businesses, the largest single-nation export market for British goods and the third-largest import partner, critical to the UK automotive industry, already landed with a 25% tariff, and pharmaceuticals, which might yet be.

In 2024 the US was the UK’s largest export market for cars, worth £9bn to companies including Jaguar Land Rover, Bentley and Aston Martin, and accounting for more than 27% of UK automotive exports.

Little wonder the domestic industry fears a heavy and immediate impact on sales and jobs should tariffs remain.

Money latest: ’14 million Britons on course for parking fine this year’

American car exports to the UK by contrast are worth just £1bn, which may explain why the chancellor may be willing to lower the current tariff of 10% to 2.5%.

For UK medicines and pharmaceutical producers meanwhile, the US was a more than £6bn market in 2024. Currently exempt from tariffs, while Mr Trump and his advisors think about how to treat an industry he has long-criticised for high prices, it remains vulnerable.

The second point is that the US is even more important for the services industry. British exports of consultancy, PR, financial and other professional services to America were worth £131bn last year.

That’s more than double the total value of the goods traded in the same direction, but mercifully services are much harder to hammer with the blunt tool of tariffs, though not immune from regulation and other “non-tariff barriers”.

The third point is that, had Donald Trump stuck to his initial rationale for tariffs, UK exporters should not be facing a penny of extra cost for doing business with the US.

The president says he slapped blanket tariffs on every nation bar Russia to “rebalance” the US economy and reverse goods trade ‘deficits’ – in which the US imports more than it exports to a given country.

That heavily contested argument might apply to Mexico, Canada, China and many other manufacturing nations, but it does not meaningfully apply to Britain.

Figures from the Office for National Statistics show the US ran a small goods trade deficit with the UK in 2024 of £2.2bn, importing £59.3bn of goods against exports of £57.1bn.

Add in services trade, in which the UK exports more than double what it imports from the US, and the UK’s surplus – and thus the US ‘deficit’ – swells to nearly £78bn.

That might be a problem were it not for the US’ own accounts of the goods and services trade with Britain, which it says actually show a $15bn (£11.8bn) surplus with the UK.

You might think that they cannot both be right, but the ONS disagrees. The disparity is caused by the way the US Bureau of Economic Analysis accounts for services, as well as a range of statistical assumptions.

“The presence of trade asymmetries does not indicate that either country is inaccurate in their estimation,” the ONS said.

That might be encouraging had Mr Trump not ignored his own arguments and landed the UK, like everyone else in the world, with a blanket 10% tariff on all goods.

Trade agreements are notoriously complex, protracted affairs, which helps explain why after nine years of trying the UK still has not got one with the US, and the Brexit deal it did with the EU against a self-imposed deadline has been proved highly disadvantageous.