UK residents are steeling themselves for yet another increase in household bills this year, with continued financial pressures on struggling families.
After last year’s so-called “awful April” brought a spike in numerous everyday costs, it seems the trend may persist this year. As the cost of living crisis continues to challenge many across the nation, families can expect further strains on finances due to upcoming rises in council tax, broadband and mobile tariffs, energy costs, and even the TV Licence fee.
Here are six household bills set for increases in the coming months. Sign up for the North Wales Live newsletter sent twice daily to your inbox.
Energy bills
Energy bills are receiving particular attention following a 1.2% rise in Ofgem’s energy price cap on 1 January, which nudged the yearly average for a typical dual-fuel bill paid by direct debit from £1,717 to £1,738. But there’s potential for an even steeper hike come April when the cap is adjusted again.
The cap, reviewed quarterly, caps per-unit energy costs from suppliers but does not limit overall bills as these depend on actual usage. Projections from consultancy Cornwall Insight suggest an increase of nearly £24, or about 3%, in April, pushing the cap to roughly £1,762, reports Wales Online.
Cornwall Insight has issued a warning based on “economic and geopolitical factors,” including the ongoing war in Ukraine, Donald Trump’s securing the presidency once more, and “question marks over effects on economic growth in general.” It’s important to bear in mind these are merely forecasts, and Ofgem will not announce its April price cap until February 25, 2025, at the earliest.
Council tax
Rates of council tax are also forecast to climb by up to 5% come April, after the government’s confirmation that they’ll maintain the present cap on hikes.
In November, Communities Minister Matthew Pennycook informed MPs that this cap represents the “right threshold” in light of the financial strains on council resources.
This prospective increase means average households with D-band properties could see an above-inflation jump of over £100 on their council tax bill. Government data reveals the average Band D council tax for 2024-25 was £2,171 – this is a £106 bump up from the year prior. The anticipated rise should bring in an extra £1.8 billion for council budgets in2025-26.
Under the existing guidelines, councils that deliver social care can increase rates by as much as 5%, whereas other council increases are limited to 3% unless approved by the Government or backed by a local referendum. These updated permissions for tax increases were established by the former Conservative administration in 2022.
Mobile and broadband contracts
Starting January 17, Ofcom will put an end to the practice by telecom firms of linking mid-contract price hikes to inflation. Instead, any and all price increases must be spelled out in “pounds and pence” in customer contracts.
Previously, broadband and mobile companies could escalate prices mid-contract every April in line with inflation, plus an additional 3.9%. This policy led to many households facing staggering bill increases in 2023 of up to 17.3%, alongside a 41-year high in inflation.
Although inflation has dropped to 2.6%, concern from consumer experts persists. For example, a fixed increase of £3 per month on a £24.99 contract is significantly higher than what inflation-linked adjustments would entail, which would be about £1.62 more.
Conversely, customers with more expensive contracts may end up paying less than what they would have with inflation-based adjustments.
How much bills will rise from April per provider
BT: If you’re a mobile customer, your price will rise by £1.50 a month from April, while TV customers will pay £2 a month more, and broadband customers will pay an extra £3 a month. Out-of-bundle services will be subject to an annual 5% increase. There will be no increases for customers who are financially vulnerable or on a BT Home Essentials package.
EE: Mobile customers will see their bill rise by £1.50 a month from April, while TV customers will pay £2 a month more, and broadband customers will pay an extra £3 a month. Out-of-bundle services will be subject to an annual 5% increase. There will be no increases for customers who are financially vulnerable or on a EE Basics package.
Three: Three mobile customers will see their bills increase this April by between £1 and £1.50 a month, depending on your data allowance. Your bill will rise by £1 a month if your data allowance is 4GB or less, or £1.25 a month if your data allowance is between 5GB and 99GB, or £1.50 a month if your data allowance is 100GB or more. Three broadband customers will see their monthly bill rise capped at £2 a month.
Virgin Media: Virgin Media customers will see their prices rise by £3.50 a month from each April. This won’t apply to customers on social tariffs.
Vodafone: Vodafone broadband customers will see their bills rise by £3 a month from April, while mobile phone customers will see their prices rise by either £1 a month or £1.80 a month, depending on their contract. Customers who are identified as financially vulnerable, are on social tariffs, and pay-as-you-go customers, won’t see their prices rise.
O2: O2 customers will see their airtime bill increase by £1.80 a month from April, but their monthly device repayments will remain frozen at a fixed price. Mobile broadband and smart watch customers will see a price rise of 75p. Customers on social tariffs and pay-as-you-go customers won’t be subject to price increases.
Plusnet: Plusnet customers will pay £3 a month more for broadband from April.
Food prices
Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Currently, inflation in the UK sits at 2.6% in the 12 months to November. This means that prices rose by 2.6% over the year. If something cost £1 last year, it would now cost nearly £1.03.
This level is above the Bank of England’s inflation target of 2%. The Office of National Statistics (ONS) tracks inflation, which covers the prices of hundreds of everyday items, including food and fuel.
November’s figure is the highest rate since March 2024, largely due to rises in fuel and clothing prices. With inflation currently unstable – and with increased costs for supermarkets and businesses coming in April – the cost of a weekly supermarket shop could rise again this year.
TV licence
From April this year, the cost of a TV licence will see an increase of £5, rising from £169.50 to £174.50. The Government has stated that the 2.96% hike in the licence fee, which is the primary source of funding for the BBC, is intended to place it on a “stable financial footing.” Additionally, the price of a black and white TV licence will go up by £1.50, moving from £57 annually to £58.50.
Previously, under the former Tory administration, the TV Licence fee was held at a standstill for two years in 2022 and 2023. At that juncture, the government praised the freeze as providing “broadcaster certainty while protecting the public from price hike.”
Nevertheless, in April of the previous year, the freeze on the licence fee was discontinued, resulting in TV enthusiasts having to fork out an additional £10.50 per annum to enjoy live television.
Water bills
When it comes to water bills, households in England and Wales are bracing for a significant surge starting in April. The average increase is projected to be about 40%, equating to an average additional cost of £31 per year – or roughly £157 over the span of five years.
By 2030, the average water bill is anticipated to hit approximately £597 annually. Ofwat has indicated that the average bill will experience a rise of £86 this year in the initial round of increases.
As part of a five-year strategy to fund crucial enhancements to the water supply infrastructure and minimise sewer overflows, there’s gonna be a sharp hike in prices. This increase even surpasses the 21% surge initially suggested by Ofwat back in July last year.
However, the regulator maintains that this level is “fair” for customers today and down the line. Water UK, the umbrella organisation for water companies, supports the rate rise, asserting the necessity for “much-needed” investment throughout the industry.
Find out what’s happening near you