Citizens Advice warns about the impact on the lowest income homes in the UK.
Which household bills are increasing?
Water bills
- In England and Wales, water bills are going up by around £10 a month on average. However, this varies based on supplier, if households have a meter and how much water they use.
- In Scotland, water bills will increase by nearly 10%.
- In Northern Ireland households do not pay water bills (no charge for ‘domestic customers’).
Energy bills
- The average energy bill per household (England, Scotland and Wales) for gas and electricity is going up by £111 a year.
- There is a cap set every three months limiting how much you will pay per unit but this does not limit the total bill – you will be charged more for increased use.
- ‘Households may consider switching to a fixed tariff for a bit of stability’, however if energy prices drop, you could be stuck paying the higher rate.
Council tax
- It’s likely the amount you pay in council tax will go up.
- In England, local authorities with a ‘responsibility for delivery social care’ can increase council tax annually by 4.99%.
- Smaller councils without this responsibility can increase this by up to 2.66%.
- Council tax rates in Scotland are going up by more than 10% in some local authorities.
- In Wales, this is as much as 15% in some areas.
- Northern Ireland uses a domestic rates system; however, all districts will see increases in this bill.
Broadband, phone and TV licence
- The cost of a TV licence is going up by £5.
- Broadband bills – for example, Virgin Media broadband customers will face a 7.5% rise in bills, but anyone who took our a contract after 9th January 2025 will see a £3.50 monthly increase.
- Phone bills – for example, EE customers who took out a contract before 10th April 2024 will have an increased bill of 6.4%.
Car tax
- The car tax rate for cars registered after April 2017 is rising by £5. However, the exact amount of car tax doesn’t just depend on the year it was registered but also the type of fuel it uses.
- Cars registered before 2017 ‘may have a lower rate’ according to the RAC.
- New electric vehicles (EVs) will no longer be exempt – £10 rate in the first year then they will move to a standard rate.
- EVs registered after April 2017 will pay the standard rate.
Income tax
- By 2028/29, nearly four million additional people will pay income tax.
- By the same time, 3 million will have moved to the higher rate of tax threshold.
Home buyers will also be feeling the pinch, with stamp duty now applying to properties over £125,000 in England and Northern Ireland (Comparatively, this was previously only for homes of £250,000 or more). For first-time buyers, they will now be paying stamp duty for homes that are £300,000 or more (£425,000 previously). 2
Households struggling
Citizens Advice said that, “Households in the lowest 10% for income were already spending around two fifths (41%) of their earnings – after housing – on water, energy, broadband and car insurance bills.” This is a huge proportion that will only increase with the new bill rises. They also shared that, “Single-adult households, and particularly those with children, were more likely than others to be spending 20% or more of their post-housing income on these bills,” reiterating that single parents will be more likely to struggle with the bill increases. Additionally, it has been found that, ‘a fifth of families do not have any savings’ which puts them at risk if they have any unexpected expenses and means they haven’t got the extra money available now to cover any of these bill increases. 1
If you or someone you know needs financial support, here are some money savings tips and support services.
References
- Peachey,K. BBC News (2025) ‘Council tax and energy bill rises hit single parents hardest’. Available at: https://www.bbc.co.uk/news/articles/cly1vwd57y2o (Accessed: 01 April 2025)
- BBC News (2025) ‘What you can do about the seven bills going up this week’. Available at: https://www.bbc.co.uk/news/articles/cvg18pvz7kko (Accessed: 01 April 2025)
