April price hikes – which household bills are going up this spring?

A series of household bills have gone up this month, from energy and water bills to council tax, adding hundreds of pounds to the cost of living.

Many major bills are increased each April and this year is no different.

Since 1 April, gas and electricity bills have increased by 6.4%, on average, following the latest Ofgem price cap announcement. Meanwhile, water bills are rising by an average £123 this year – the largest price hike since the water industry was privatised in 1989.

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A large number of councils are also hiking council tax bills by 4.99%, with some having been granted special permission to go even higher. Those living in Bradford will face a 9.99% rise, for example.

It is bad news for the pound in your pocket. Analysis from investment platform Hargreaves Lansdown found that the average household could find itself paying £49.45 more in essential costs each month, once all bill increases are taken into account. This comes to £593.40 in additional costs a year.

The bill hikes are coming at a time when inflation more broadly is on the rise again. The Bank of England has forecast that the rate of consumer price inflation could hit around 3.75% in the third quarter of this year.

“April is going to be every bit as awful as you’d expect this year, with the usual range of price rises squeezing our budgets even harder. This doesn’t just mean money will be tighter in the coming weeks, it also has a knock-on impact on your savings,” said Sarah Coles, head of personal finance at Hargreaves Lansdown.

“We should all be working towards holding enough cash to cover three to six months’ worth of essential expenses as emergency savings while we’re working and one to three years’ worth in retirement. It means that a rise in the cost of essentials will automatically increase the amount of savings you need to hold,” she added.

April pay rises

There is some good news for employees as the National Minimum Wage and National Living Wage are set to rise this month.

The National Living Wage for those aged 21 and over will rise from £11.44 per hour to £12.21 per hour. The government said the pay rise is worth an extra £1,400 per year for an eligible full-time worker.

The National Minimum Wage for 18 to 20-year-olds rises from £8.60 to £10.00 per hour.

The apprenticeship rate, and for 16 to 17-year-olds, rises from £6.40 per hour to £7.55 per hour.

That should mean more money in your pay packet, although it could mean being pushed into a higher tax band faster than expected due to frozen tax thresholds and fiscal drag.

It is also not such good news if you employ staff as you will have to find the money to pay higher wages and potentially increased employer National Insurance contributions.

Energy bills

The Ofgem price cap has increased by 6.4%, causing pain for many households. It is the third consecutive increase, after bills surged by 10% in October and 1.2% in January.

For the average household paying by direct debit for gas and electricity, bills will rise by £111 to £1,849 per year. People who use more energy will pay more. This is 9.4% higher than the same period a year ago, but 22% lower than at the height of the cost-of-living crisis when the Energy Price Guarantee was in place.

“There is a small silver lining in that the spring should bring warmer weather and longer daylight hours, meaning less reliance on heating and indoor lighting,” said Danni Hewson, head of financial analysis at investment platform AJ Bell. “But there are many households struggling to pay off debts run up since energy prices shot skywards and many more will be wondering if costs will ever return to more ‘normal’ levels.”

Those who have already switched to a fixed energy tariff will be protected from the hike. Fixed-rate deals are still available for those who want the security of knowing roughly what their bill will look like each month.

However, it is worth remembering that you could lose out going forward if you lock in a fixed-rate tariff today and prices fall over the coming quarters. Consultancy Cornwall Insight has predicted that the Ofgem price cap will fall by around 7% in July.

We take a closer look at the considerations in: “Should you switch to a fixed energy tariff?”

Water bills

Water bills will rise by an average 26% from this month, equivalent to £123 per year. It will bring the typical annual bill to £603, according to trade body Water UK. You could pay more or less than this depending on your usage. Prices also vary from provider to provider.

^{Source: Water UK. Changes come into effect in April 2025.}

Higher bills have partly been driven by financial mismanagement within the water companies. Several have been involved in controversies related to leaks and sewage spills, and significant investment is needed to improve the UK’s water system.

The regulator Ofwat has now approved a £104 billion investment over the next five years. “This is an ambitious programme of work, and we now need to see companies deliver significant improvement in performance for customers and the environment,” Ofwat said.

Customers are unable to shop around when it comes to water, unlike energy. You have to use the provider that supplies your local area. Despite this, there are some steps you can take to reduce your water bill. This could include installing a water meter, if you don’t already have one. That way, you will only pay for what you use.

Not all properties are suitable for a water meter, but if you can’t get one, you can ask your provider for an assessed charge bill. This is a bill which is customised to your situation based on factors like the size of the property and how many people live there. Meanwhile, low-income customers can request a social tariff.

Council tax

Many local authorities will also increase council tax bills from 1 April. In England, there is a 4.99% cap on hikes, but six local authorities have been given special permission to exceed the cap this year. This includes:

• Bradford: 10%
• Newham: 9%
• Windsor & Maidenhead: 9%
• Birmingham: 7.5%
• Somerset: 7.5%
• Trafford: 7.5%

You should be able to find information about bill hikes in your area by looking at your local authority website.

In Scotland, councils now have complete freedom to set rates after they were previously capped or frozen. Some areas, including those listed below, will see large increases.

• North Lanarkshire: 10%
• Scottish Borders: 10%
• East Lothian: 10%
• Fife: 8.2%
• City of Edinburgh: 8%
• Glasgow City Council: 7.5%

In Wales, no strict thresholds are in place when it comes to council tax hikes, however Welsh ministers can restrict increases that are deemed “excessive”.

Checking you are in the correct council tax band could save you some money. If you have been put in a more expensive band in error, you could be due a bill reduction and potentially even a council tax refund.

Some people are also eligible for a discount or reduction in their council tax bill based on their personal circumstances. For example, those who live alone are entitled to a 25% discount. There are also discounts for people with certain disabilities. Similarly, households where everyone is a full-time student don’t have to pay any council tax at all.

If you are on a low income or live with someone who is, you could also qualify for a council tax reduction. The exact criteria vary from council to council.

Broadband and mobile bills

Communications regulator Ofcom imposed new rules earlier this year to ban surprise mid-contract price hikes on mobile, broadband and paid TV deals. This applies to anyone who took out a contract from 17 January 2025.

Under the new rules, providers are required to inform customers of any price rises before they take the contract out, detailing when these will occur and outlining the price changes in pounds and pence.

Nevertheless, those who took their contracts out before these changes took place could still face inflationary price hikes this month. These are typically based on a historic rate of CPI or RPI inflation.

For example, customers who took out a contract with Virgin Media before the new rules kicked in will face a 7.5% bill hike this April (January’s RPI, plus an additional 3.9%). You can find out how much your bill is likely to go up by looking on your provider’s website.

The best way to reduce your broadband and phone bill is by shopping around and switching if your provider isn’t competitive.

Building your emergency savings

Based on Hargreaves Lansdown’s calculations, the average household spends £2,062 on essentials each month. If April’s bill hikes push monthly costs up by £49.45, as outlined previously, this figure will rise to around £2,111.

With costs set to go up this April, you should look to increase the size of your savings pot accordingly.

Most financial planners recommend building an emergency savings pot which can cover at least three to six months of essential spending. That guidance is for working people. Retired people should look to build even more – enough to cover a period of one to three years.

The below table shows how much extra you might need to save, based on these assumptions and April's price hikes.

“Nobody expects you to produce the extra cash from nowhere, but it’s worth considering where you can cut costs, and whether you can free up any cash from your budget to set aside for emergencies,” says Coles.

If you get a pay rise or bonus, that could be a good opportunity to funnel more money into your savings account.

We delve into the average savings by age in a separate story.