There’s been a raft of bulletins in current months that imply increased payments for customers – however one thing chances are you’ll not have seen is that lots of the worth will increase will hit directly.
On 1 April, coinciding with the brand new monetary yr, households will face increased payments for:
EnergyBroadband, cell phone and TV licenceCar taxWaterStealth taxesStamp dutyCouncil tax
We now have outlined what’s coming – and the way you possibly can doubtlessly beat the hikes – in final week’s Saturday long-read.
ENERGY BILLS
The typical annual vitality invoice will rise to £1,849 as business regulator Ofgem will increase the worth cap for the third time in a row.
The brand new determine represents a 6.4% a yr – or £9.25 per thirty days – enhance within the typical sum the overwhelming majority of households face paying for fuel and electrical energy when utilizing direct debit.
Solely these on fixed-rate offers – round 11 million houses – will see no change till their present time period expires. An additional 4 million houses have fastened the price of vitality models since November, Ofgem mentioned.
Standing prices – every day fastened charges to connect with a fuel and electrical energy provide which range by area – are additionally rising for fuel whereas dropping for electrical energy, but it surely depends upon the place you reside.
So do you have to repair?
Client professional Martin Lewis says that, based mostly on the place vitality costs are at present 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 very best deal at present in the marketplace is with Outfox the Market, which is providing a 12-month repair for 7.4% lower than January’s cap and 12.9% lower than April’s.
EDF is at present providing a no-exit payment repair, and Octopus is doing the identical for current prospects – so if the maths give you the results you want, these could possibly be risk-free choices.
We spoke to Emily Seymour, Which? vitality 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,” mentioned 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 would advocate in search of offers near the present worth cap, not longer than 12 months and with out important exit charges.”
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: “In the event you’re eligible, your electrical energy provider will apply the low cost to your invoice. The cash isn’t 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.”
These on pension credit score will even be eligible for the winter gas allowance later this yr – that is value as much as £150.
BROADBAND AND MOBILE
Whereas Ofcom’s new guidelines banning inflation-linked contracts got here into impact in January, many customers shall be on older contracts that can nonetheless see a worth rise linked to inflation.
That is inflicting confusion amongst prospects, so for total readability: Uswitch says this April’s rises are anticipated so as to add a mean of £21.99 yearly for these on inflation-linked contracts and as much as £42 a yr for these on newer “pounds and pence” plans which might be topic to fastened will increase.
How have you learnt which contract you might have?
Many suppliers began placing prospects on fastened enhance contracts in 2024 – so in case you began a brand new broadband contract lately, chances are you’ll be topic to a kilos and pence worth hike.
These are the dates the suppliers began introducing them…
BT/EE/Plusnet: Contract began on or after 10 April 2024Vodafone: Contract began on or after 2 July 2024TalkTalk: Contract began on or after 12 August 2024Three Broadband: Contract began on or after 1 September 2024Virgin Media: Contract began on or after 9 January 2025
So in case you signed up for a deal on any of the above after these dates, you have to be on a set annual enhance – however you may need to verify your particular person coverage.
This is an outline of the hikes being carried out by main suppliers…
Take into account switching
You would possibly be capable of keep away from the rises by switching supplier as cheaper offers are sometimes accessible to new prospects.
It’s best to verify to see in case you’re out of contract first, or what the exit penalty could also be.
Analysis by Which? reveals switching suppliers while you’re out of contract may minimize payments by as much as £235 yearly.
In the event you do not need to go away your supplier, you possibly can additionally name them and attempt to haggle down your month-to-month value.
A number of broadband suppliers have social tariffs accessible, serving to these on advantages entry an web connection at a decrease month-to-month worth.
In keeping with Uswitch, two-thirds of financially susceptible households are unaware that low-income broadband tariffs exist.
Bundling?
You might be able to get cheaper costs by bundling your telephone, web and TV companies – although that you must learn the small print as exit charges may be important.
TV LICENCE
The price of a TV licence will even go up by £5 to £174.50
The rise comes after a £10.50 rise introduced the cost to £169.50 in April final yr.
In the event you’re 75 or over and also you get pension credit score, otherwise you dwell with a associate who does, you qualify for a free TV licence.
You may apply for it right here or by calling TV Licensing on 0300 790 6071.
These in residential care or sheltered lodging can get a licence for £7.50, whereas these registered blind or residing with somebody who’s can get a 50% low cost.
TRAIN FARES
Practice fares in England have elevated by 4.6% as of two March. Railcards are additionally going to turn into dearer, regardless of the record-low reliability of companies.
The Welsh authorities matched Westminster’s cap, whereas Transport for Wales is making use of numerous will increase to its unregulated fares.
In the meantime, the Scottish authorities will enhance all ScotRail fares by 3.8% from 1 April.
Among the finest methods to beat the worth hikes is by getting a railcard – they usually’re not only for conventional concession teams. We outlined all of the totally different railcards right here…
How can I exploit a railcard to economize on my prepare fare?
How one can beat the system
Mark Smith, who arrange The Man in Seat 61 weblog to assist folks journey cheaper and higher, advised Cash there have been numerous “traps” folks fell into.
Tickets are usually launched round 12 weeks upfront, however initially chances are you’ll solely see dearer Off-Peak and Anytime tickets.
There’s usually a niche of per week or two earlier than reservations open and the less expensive Advance fares go on sale.
Smith says it can save you cash by buying any time earlier than your day of journey – a £30 or £40 Advance fare will then flip into an £68.60 Off-Peak one-way or a £184.70 Anytime, for instance.
If you’re pressured to journey at peak instances it’s best to take into account break up ticketing. For instance:
In the event you’re travelling at 5pm on a Monday, as a substitute of getting a peak ticket all the way in which from London to Manchester, get a peak Anytime ticket to Milton Keynes after which an Off-Peak from Milton Keynes to Manchester.
One ultimate lure to keep away from was uncovered by a Which? investigation final yr that discovered prepare station ticket machines could possibly be a lot, far more costly than shopping for on-line.
CAR TAX
Additionally going up is the usual price of highway tax for automobiles registered after April 2017.
The flat price value of automobile tax from April 2025 is £195 (so a rise of £5).
Hybrid automobiles get a small low cost (£10) but when your car had an inventory worth of greater than £40,000 when it was first bought then you may additionally be chargeable for the “luxury car tax” payment, which provides £410 to your annual prices.
You could pay much less in case your automobile was first used earlier than 2017 – the precise quantity will rely on the yr a automobile was registered and the kind of gas it consumes.
Maybe an even bigger change is that electrical autos (EVs) will even now not be exempt from tax – these registered from April 2025 can pay the bottom price of £10 within the first yr, then transfer to the usual price.
Feeling confused? Autotrader offers this instance…
It is April 2025 and also you’re selecting between Porsche Macans, petrol or electrical (fortunate you). A fundamental petrol Macan will imply you pay £4,680 in automobile tax within the first yr, whereas with the electrical one, you may pay £10. After that, they’re going to each go to the usual price (£195 per yr) plus the £410 Costly Automotive Complement for 5 years.
Picture:
Car tax reminder. Pic: iStock
WATER
Probably probably the most controversial of the April adjustments is the sizeable enhance to water payments.
Payments are going up in a improvement that has been blamed on issues together with increased borrowing prices on massive ranges of debt, creaking infrastructure and report sewage outflows into waterways.
Nevertheless, it was reported final March that England’s non-public water corporations made £1.7bn in pre-tax income – up 82% since 2018-19 – prompting renewed requires the utility to be renationalised.
The typical annual water invoice will rise by 26% or £123 within the subsequent monetary yr alone, figures confirmed.
Water UK mentioned the will increase throughout households would additionally range, relying on circumstances akin to water use and whether or not a water meter was put in.
Get the total story right here…
Water payments in England and Wales to rise by common of £10 per thirty days
All water corporations provide a social tariff for eligible prospects that reduces the price of water payments – verify together with your supplier to see in case you are eligible.
Do you have to get a water meter?
Martin Lewis has some easy recommendation on this one: if in case you have extra bedrooms than folks in the home, a water meter is more likely to prevent cash.
In case your water firm says it may well’t offer you a meter, you’ll be able to requested for an “assessed charge” – which may provide the very best of each worlds. Ofwat explains yours rights right here.
STAMP DUTY
We have been speaking so much about this in current weeks.
Adjustments come into pressure from the 1 April and have an effect on these in England and Northern Eire.
The present “nil rate” band (at which you begin paying) for first-time consumers will cut back from £425,000 to £300,000, whereas different home-buyers will even see a discount from £250,000 to £125,000.
In London, a mean first-time purchaser may find yourself paying greater than £11,000 further from April, Santander mentioned.
COUNCIL TAX
Some 85% of top-tier council authorities in England expect to extend council tax by just below 5%.
Moreover, Bradford, Newham, Birmingham, Somerset, and Windsor and Maidenhead have been given particular permission by the federal government to bypass the 4.99% cap – which means they may elevate council tax by extra.
Our knowledge and forensics unit has been having a look at how council funds have deteriorated right here.
With the vast majority of councils rising their council tax by the utmost quantity this month, some households may see their payments soar considerably.
Are you eligible for a reduction?
You could qualify for further help or a discount in your council tax invoice, for instance in case you’re on a low revenue, a pupil, residing alone or are disabled.
Another choice is to have your council tax invoice unfold over 12 months as a substitute of the standard 10 – this would possibly not prevent cash however may aid you to price range, in case your council affords this selection.
You would additionally get your private home’s council tax band reviewed, which can entitle you to a refund in case you’re within the improper band. Nevertheless, you have to be conscious the assessment may result in your property being put in a better band.
STEALTH TAX
Anticipating a pay rise?
You could be stunned to see how little interprets to your pay cheque.
That is as a result of frozen revenue tax thresholds may imply that some folks get pushed into increased tax brackets as their wage goes up.
Others could possibly be pushed into paying tax on their financial savings by breaching the non-public financial savings allowance – which is £1,000 tax-free curiosity for fundamental price taxpayers.
WHAT TO DO IF YOU’RE STRUGGLING TO PAY BILLS
In the event you’re having bother paying your payments, there’s plenty of help on the market.
Emily Seymour, from Which?, advised Cash: “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 is essential to keep in mind that vitality corporations are obliged that can assist you in case you inform them you might be struggling to pay and won’t disconnect you in case you miss a invoice cost. You would ask for a assessment of your funds, a discount in your funds or a cost break, extra time to pay, and entry 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.
“In the event you do not qualify for a broadband or cellular social tariff, our analysis reveals you possibly can nonetheless make huge financial savings by switching suppliers – particularly in case you’re with a agency that hikes costs yearly – so it is at all times a good suggestion to match offers on the finish of your contract to seek out the very best provide for you.”
You may verify your eligibility for advantages on the federal government web site which can permit you to entry decrease tariffs and get in touch with your native council to see in case you’re in a position to get help with water and vitality payments.
There’s additionally charities providing assist, together with Residents Recommendation and Nationwide Debtline, that are readily available to offer free, neutral recommendation.
