Water, cars and phones: The seven bills set to rise in April

Energy costs are among numerous fee increases taking effect in early April, with some commentators describing April as "awful April." The specific amount of your expenditure will depend on your individual circumstances and where you live.

Although the minimum wage will increase in April, and average wage growth has outpaced inflation, household finances may still face additional pressure. Here are seven areas where you may be affected.

Household water bills in England and Wales are expected to rise by an average of £10 per month, but the specific increase will vary by company. For example, Southern Water's annual bill will increase significantly by 47% to £703, while Anglian Water customers will pay 19% more, or £626. Factors such as whether a water meter is installed and water usage will also affect bills, and water bill increases for the next five years will be implemented in advance, meaning that significant increases will arrive in April. Water companies in England and Wales say the price increases are to invest in aging infrastructure, including sewage treatment, and to build more reservoirs. In Scotland, water bills are expected to rise by nearly 10%. Scottish Water (a public body) says that funds need to be spent to cope with "periods of drought and heavy rainfall" caused by climate change. Domestic users in Northern Ireland do not pay water bills, as the system is funded by local government.

From April, annual energy bills for households using typical gas and electricity will increase by £111 to £1,849. The regulator, the Office of Gas and Electricity Markets (Ofgem), has raised the energy price cap due to rising wholesale costs and inflation. The cap is set every three months and limits the amount suppliers can charge per unit of gas and electricity, but it does not limit the total bill amount, so if your usage increases, you will pay more. It affects 22 million households in England, Wales, and Scotland. Fixed costs for gas and electricity supply (i.e., standing charges) vary by region, with gas costs rising again and electricity costs falling, but this depends on where you live. Ofgem advises households to consider fixed rates for some stability, even though there is news that prices will fall in July.

The tax you pay to your local government (i.e., council tax) is very likely to rise from April. In England, local governments responsible for providing social care can increase council tax by up to 4.99% each year without holding a referendum or local vote. Smaller councils without social care responsibilities can increase bills by up to 2.99%. For the 2025-26 financial year, the government has allowed Bradford, Newham, Birmingham, Somerset, and Windsor and Maidenhead to bypass the 4.99% cap, meaning they can raise more council tax. Council tax rates in Scotland have been frozen or limited in increase since 2007, but are expected to rise in April, in some cases by as much as 10%. The Scottish government says it will provide an additional £1 billion to local governments in 2025-26 to help reduce the size of any increases. In Wales, council tax rates in some areas could rise by as much as 15%. The Welsh government has provided £253 million to local governments in its draft budget, but council leaders say more funding is needed. Northern Ireland uses a domestic rates system instead of council tax. All councils in Northern Ireland have reported an increase in district rates for next year.

From April, the standard rate of Vehicle Excise Duty (VED) for cars registered after April 2017 will increase by £5 per year to £195. According to the RAC, you may pay less or more if your car was first used before 2017. The specific amount of your road tax will depend on the year your car was registered and the type of fuel it uses. A significant change is that electric vehicles (EVs) will no longer be exempt from tax. EVs registered from April 2025 will pay the lowest rate of £10 in their first year, before switching to the standard rate. The standard rate will also apply to EVs first registered after April 2017.

Rule changes introduced by the telecoms regulator this year mean that mobile and broadband providers must now inform customers of any price increases in "pounds and pence," as well as when the increase will occur. The new rules generally only apply to new customers, so any price increase will depend on when you signed your contract. For example, under the new rules, someone with a mobile Sim-only contract with EE will see their bill increase by £1.50 per month, or £18 per year. However, for most customers who signed a contract before April 10, 2024, they will face a 6.4% increase, which is based on the inflation rate in December last year, plus an additional fee. Similarly, most Virgin Media broadband customers will face a 7.5% bill increase, but for anyone who signed a contract after January 9 this year, their monthly bill will increase by £3.50. The cost of a television license will also increase by £5 to £174.50, and the cost of a black and white television license will increase by £1.50 to £58.50.

In England and Northern Ireland, home buyers will pay stamp duty on properties over £125,000 from April, compared to the current threshold of over £250,000. First-time buyers currently do not pay stamp duty on homes up to £425,000, but this threshold will fall to £300,000. Anyone starting to look for a property now may struggle to complete their move before the stamp duty changes. The government has frozen income tax and national insurance tax thresholds until 2028, a policy introduced by the previous government. This is often referred to as a stealth tax—because the government has not explicitly labeled it as a tax. But due to a process known as "fiscal drag," the policy amounts to a tax increase, as more people are "dragged" into paying higher tax rates as wages rise. According to the government's financial watchdog, by 2028-29, nearly four million additional people are expected to pay income tax due to the frozen thresholds—and three million people will move into higher tax brackets.