The Mirror rounds up all the bills that are getting more expensive from this April – including council tax, energy, broadband, mobile and water – and how you can save money by acting now
Millions of households will be paying more for their bills from today as “Awful April” hits. Everything from council tax to energy and water will become more expensive.
On top of this, a hidden tax rise means you’ll be paying more to the taxman every month. The latest research from financial comparison website NerdWallet estimates that households will be forking out an extra £32.17 each month in bills alone – more than £360 over the next 12 months. But there are ways to fight back and save money.
It comes hot off the Spring Statement which was delivered last week by Chancellor Rachel Reeves, where she unveiled £5billion worth of benefit cuts, including to the disability benefit Personal Independence Payment (PIP).
Energy bills
Energy bills are rising by 6.4% from today, as the latest Ofgem price cap comes into force. The average dual fuel household paying by direct debit will see their annual energy bill increase from £1,738 a year to £1,849 – a rise of £111 a year, or £9.25 a month. The Ofgem price cap does not cap your total bill, instead, it sets the maximum you can be charged for unit rates of gas and electricity, as well as the standing charges – so your bill is still based on how much energy you use.
How to save money: The current cheapest energy fixes are around 7% below the current January price cap, and 14% cheaper than the April price cap. Do a comparison online now to see what deals are available to you. You should also do an audit of your home to make sure it is as energy-efficient as possible, such as checking your insulation levels in the loft and walls, and for drafts around windows and doors. If you are struggling to pay your energy bill, speak to your supplier as soon as possible to discuss what options are available.
Council tax
Council tax bills will rise by 5% on average from today. Some local authorities are putting up bills by even more than this. Bradford Council has had a 10% increase approved, while Newham and Windsor and Maidenhead will both be allowed a 9% rise. Birmingham, Somerset and Trafford residents have been allowed a rise of 7.5%. The average band D council tax bill is now £2,280 – an increase of £109 or 5%.
How to save money: Check if you’re eligible for a council tax discount – for example, if you’re living alone, you get 25% off your council tax bill. If you claim benefits or you’re on a low income, see if your local authority runs a Council Tax Support or Council Tax Reduction scheme. In some cases, you could be entitled to 100% off your bill. Finally, see if you can challenge your council tax band. If you’re in too high of a band, you may be due thousands of pounds back, plus lower bills going forward. But do your research first, as if you’re in too low of a council tax band, your future bills will go up. Are you worried about Awful April? Take our poll below, if you can’t see it click here
Broadband and mobile
Broadband and mobile companies must now tell customers in “pounds and pence” how much their contract will rise by each year, instead of linking it to inflation. But this new rule typically applies to new customers, so if you’re on an older contract, you may still find your price rise is linked to inflation. It means for this year, some broadband and mobile customers face seeing their bill rise by as much as 7.5% from April.
How to save money: If you’re out of contract, compare prices to see if you can get a better deal elsewhere. Check how many minutes and texts you’re currently using, or your broadband speed, as many people pay for higher allowances that they don’t end up using. If you don’t want to leave your current provider, try haggling, and if you claim benefits, check if you can save money by signing up for a cheaper social tariff.
Water
Water bills are rising from £480 to £603 a year on average from today – an increase of £123. This works out around an extra £10 a month. However millions of households face even bigger rises, as there are big differences between suppliers. For example, Southern Water customers will see a 47% increase, Hafren Dyfrdwy and South West Water bills are rising by 32% and Thames Water customers will be hit with a 31% hike.
How to save money: Check if you could save money with a water meter, which is a device that records the amount of water being used in your home. The general rule of thumb is, you may benefit from a water meter if you have more or the same number of bedrooms in your house than people. You should also check if you can claim free water-saving gadgets through Save Water Save Money. The gadgets include shower heads which help regulate water usage, tap inserts to regulate water flow, and cistern bags, so each flush uses less water.
TV licence
The TV licence fee will rise from £169.50 to £174.50 a year from April – an increase of £5. The price of a black and white TV licence will also rise from £57 to £58.50 a year – an increase of £1.50. You need a TV licence to watch live TV or any shows on BBC iPlayer. If you’re caught watching live TV without a TV licence, you can be fined up to £1,000.
How to save money: If you claim Pension Credit and you’re over the age of 75, then you’re entitled to a free TV licence. Or if you live in residential care or sheltered accommodation, you may be able to apply for a concessionary TV licence which costs £7.50 per room, flat or bungalow. Students who are living away from home may be covered if their parents have a TV licence, but only if they’re watching TV on a device that isn’t plugged into the mains, such as a phone, tablet or laptop. If someone in your household is blind or severely sight-impaired, you’ll get 50% off the cost of your TV licence.
Car tax
Electric vehicles (EVs) will be subject to car tax for this first time from this April. If you buy a new EV from April 2025, you’ll pay the lowest first year rate of vehicle tax of £10 – then from the second year onward, you’ll pay the standard rate of road tax, which is rising from £190 to £195 from April. If your EV was registered between April 1, 2017 and March 31, 2025, then you will pay the standard rate of road tax. EVs, zero or low emission cars that were registered between March 1, 2001 and March 31, 2017, and emit up to 100g/km of CO2, will pay £20 a year from April. Car tax rates for some other vehicles will also rise, depending on how much CO2 they emit and the year they were manufactured.
How to save money: It is cheapest to pay for your car tax upfront, compared to splitting it into two lots of six monthly payments, or monthly payments. You can renew your road tax up to two months before it expires, so if you’re able to do this before April, you can put off any increases until 2026. You’ll need to enter your number plate online and the 11-digit reference number on your V5C log book.
Hidden tax rise
Frozen tax thresholds mean millions of workers will pay more to the taxman over the next few years. The tax thresholds are currently frozen until 2028. The personal allowance – which is how much you can earn before you start paying tax – is set at £12,570 a year. The basic rate of Income Tax starts at 20% for earnings above £12,570 a year, then the higher rate of 40% is paid on earnings above £50,270. Anything above £125,140 is taxed at the 45% additional rate. These frozen thresholds mean when you get a pay rise, or a better paid job, you’re being dragged into, or pushed closer to, paying a higher rate of tax, instead of these brackets moving in line with inflation.
How to save money: If your company offers a salary sacrifice scheme, then you could cut your tax bill by paying more into your pension, as it reduces how much of your salary is subject to tax. If you’re married and one of you is a non-taxpayer and the other is a basic rate taxpayer, then marriage tax allowance lets the non-taxpayer give £1,260 of their personal allowance to their spouse in the current tax year.
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