£123 Increase in UK Household Bills This April – See How It Affects You

Inflation shock to British families in April 2025

The month of April is bringing new challenges for UK families this year. Millions of households will face a huge increase in the expenses of their everyday needs. It is estimated that the average British family will have to spend about £123 extra every month. This economic burden is coming at a time when people are still trying to recover from the economic troubles of the last few years and are facing the brunt of ever-increasing inflation.

This month, the prices of many essential services and facilities are going to increase simultaneously. The cost of council tax, water bills, broadband and mobile services is going to increase. In this article, we will understand in detail why this increase is happening, in which areas inflation will increase the most, who will be most affected by it and finally, what measures can people adopt to reduce this economic burden.

How is the average monthly increase of £123 happening?

This £123 increase is the sum of money spent on many different services and needs. Ordinary people cannot afford to cut these services off, as they are an important part of everyday life.

Energy costs: the biggest factor

Energy prices in the UK have been changed many times in recent years, but electricity and gas bills are set to rise again in April. It is estimated that the annual energy bill will increase by around £68, which is the equivalent of £5.67 per month.

There are several reasons behind this increase:

• Volatility in the international energy market
• Global political tensions and the impact on the supply chain
• Energy companies passing on the cost of infrastructure investment to consumers
• Rising operating costs for energy companies due to inflation

Homes with high energy consumption, such as those with poor insulation or electric heating systems, may face an even higher than average increase.

Council tax: no way to escape

Local authorities (councils) in the UK are allowed to raise taxes to meet their monetary needs. This 12 months, many local councils have determined to increase council tax by means of as much as 5%.

This manner that the common Band D belongings’ council tax will growth by way of £104 a year, that is an increase of round £8.67 per month.

• Parts of London will see the lowest increase in council tax.
• Parts of the North East and North West England will see the highest increase in council tax.

The main reason behind this increase is that councils have limited options to cover their budget deficits, and they have to charge more tax to keep public services running.

Water bill rise

On average water bills in England and Wales are set to rise by 6%, adding up to £27 a year (that’s £2.25 per month).

However, the increase will vary across different areas:

• Northumbrian Water customers will face an increase of around 8.5%.
• Thames Water users will pay 6.7% more.
• Severn Trent customers will face a rise of around 5.8%.
• Welsh Water customers will see the lowest increase, around 4.3%.

The increase is due to investment in improving infrastructure and improving water quality.

Broadband and mobile bills to get bigger

Digital services are now a necessity for every household, but their prices are also going to increase in April:

• Major broadband companies such as BT, Virgin Media, Sky and TalkTalk are increasing their prices by an average of 7.9%, which means you will have to pay around £3.50 more per month.
• Mobile phone tariffs are also increasing by an average of £2.20.
• Overall, the cost of digital services will increase by around £5.70 per month.

Most consumers have limited options to avoid this increase, as they are already tied to a contract and may have to pay a hefty penalty if they change early.

TV licence and streaming services also get more expensive

• TV licence fees will increase by £10.50 to £169.50, which is an extra burden of around £0.88 per month.
• The cost of streaming services such as Netflix, Disney+ and Amazon Prime is also rising.
• Many households who use these services will have to pay an average of £4.30 more each month.

Who will be most affected?

Impact on pensioners

The situation may be more difficult for older people because:

• They spend more time at home during the day, which leads to more heating and electricity use.
• Their income is limited, so they may not be able to easily manage the extra cost.
• They have to pay costs such as the TV licence in full.
• They cannot easily change their broadband and mobile services.

Impact on young families

Families with young children are more likely to see increased costs because:

• They use heating and appliances more during the day.
• They have a greater reliance on digital services.
• They often use multiple streaming services.

Impact on Single Person Households

For people who live alone, spending can be more burdensome because:

• They get limited council tax discounts.
• There is no one to share the cost of digital services with.
• They also have less control over energy costs.

Tips to reduce costs

If people want to reduce the impact of this rising inflation, then some measures can be taken:

Save energy

• Draught-evidence your private home’s home windows and doorways, which can store as much as £45 a 12 months.
• Use a smart thermostat, that could cut heating bills through up to fifteen%.
• Switch to LED bulbs, that can save as much as £forty a year.
• Get loft insulation finished, that may store up to £180 yearly.

Reduce the cost of digital services

• Buy broadband, mobile and TV services from the same provider, which can get good discounts.
• Switch streaming services on or off as needed.

Apply for council tax relief

• Some people may get a council tax discount depending on their income.
• Spreading a payment plan over 12 months can reduce the monthly burden.

Will inflation continue to affect the coming years?

Inflation is likely to increase even after April 2025. In particular:

• Energy prices will take time to stabilise.
• Council tax will continue to rise every year.
• Digital services and other essential expenses will also continue to be expensive.

Therefore, it is important to focus on reducing expenses and saving by making proper plans from now on.

FAQs