A series of household bills will go up in April, from energy and water bills to council tax, adding hundreds of pounds to the cost of living.
Gas and electricity bills are set to rise by 6.4%, on average, following the latest Ofgem price cap announcement. Meanwhile, water bills will rise by an average £123 per year – the largest price hike since the water industry was privatised in 1989.
A large number of councils are also planning to hike council tax bills by 4.99%, with some having been granted special permission to go even higher. Those living in Bradford will face a 10% rise, for example.
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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 3.7% 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 3-6 months’ worth of essential expenses as emergency savings while we’re working and 1-3 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.
Energy bills
The Ofgem price cap will rise by 6.4% in April, 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 5% in July.
We take a closer look at the considerations in: “Should you switch to a fixed energy tariff?” We also highlight several deals that are cheaper than the April price cap.
Water bills
Water bills will rise by an average 26% from April, 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.
Water and wastewater companies | 2024-25 | 2025-26 | Change (£) | Change (%) |
Anglian Water | £527 | £626 | £99 | 19% |
Dŵr Cymru (Welsh Water) | £503 | £639 | £136 | 27% |
Hafren Dyfrdwy | £447 | £590 | £143 | 32% |
Northumbrian Water | £426 | £506 | £79 | 19% |
Severn Trent Water | £457 | £556 | £99 | 22% |
South West Water (south west region) | £520 | £686 | £166 | 32% |
Southern Water | £478 | £703 | £224 | 47% |
Thames Water | £488 | £639 | £151 | 31% |
United Utilities | £486 | £598 | £112 | 23% |
Wessex Water | £556 | £669 | £113 | 20% |
Yorkshire Water | £467 | £602 | £136 | 29% |
Water-only companies | 2024-25 | 2025-26 | Change (£) | Change (%) |
Affinity Water (central region) | £192 | £235 | £43 | 23% |
Affinity Water (east region) | £225 | £278 | £53 | 24% |
Affinity Water (south east region) | £249 | £291 | £43 | 17% |
Bournemouth Water | £144 | £191 | £47 | 32% |
Bristol Water | £226 | £234 | £9 | 4% |
Essex and Suffolk Water | £286 | £318 | £32 | 11% |
Portsmouth Water | £120 | £150 | £30 | 25% |
South East Water | £245 | £294 | £49 | 20% |
South Staffs Water (Cambridge region) | £163 | £203 | £40 | 24% |
South Staffs Water (South Staffs region) | £178 | £224 | £46 | 26% |
Sutton and East Surrey (SES) Water | £254 | £249 | -£5 | -2% |
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 are also planning to 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%
Not all councils have finalised their decision yet, but you should be able to find information about bill hikes in your area by looking at your local authority website.
In Scotland, councils have complete freedom to set rates, however these have been frozen or capped for much of the past two decades. This is set to come to an end this April. This will result in significant bill hikes for many, including:
- 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 April. 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, 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 upcoming hikes.
Period of essentials to cover | Amount of savings you need today | Amount of savings you need after the price rise | Extra savings needed |
3 months | £6,186 | £6,334 | £148 |
6 months | £12,372 | £12,669 | £297 |
1 year | £24,744 | £25,337 | £593 |
3 years | £74,232 | £76,012 | £1,780 |
“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.
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