A slew of financial bills are set to rise this week, with water and energy prices increasing by significant amounts. From April, households will face higher council tax rates, car taxes, and TV licence fees.
Essential Bills Rising This April: What You Need to Know
1. Water Bills
Water bills for households in England and Wales are increasing by £10 per month on average. However, the exact amount you’ll pay depends on various factors such as whether your household has a meter and how much water is used. For example, Southern Water customers will see their annual bill jump by 47% to £703, while Anglian Water customers will pay 19% more, or £626.
A typical water bill includes charges for consumption, meter reading fees, and any applicable taxes.
The average household uses around 80-100 gallons of water per day.
Factors such as location, climate, and household size can influence water usage.
Some cities offer tiered pricing, charging more for excessive use.
Understanding the breakdown of your water bill helps you identify areas for conservation and potential cost savings.
The increases are needed to invest in creaking infrastructure, including sewage, and to build more reservoirs. In Scotland, water bills are rising by almost 10%. The Scottish government is offering local authorities an extra £1 billion in 2025-26 to help reduce the scale of any rise.
2. Energy Bills
The annual energy bill for a household using a typical amount of gas and electricity is increasing by £111 per year, from £1,849 to £1,960. The regulator, Ofgem, has increased the energy price cap due to higher wholesale costs and inflation. Standing charges are rising again for gas but dropping for electricity.
Energy bills are a necessary expense for households and businesses, reflecting the cost of energy consumption.
Typically, an energy bill includes charges for electricity or gas usage, with rates varying by provider and location.
Factors influencing energy costs include usage levels, tariff plans, and seasonal fluctuations.
Understanding these factors can help consumers manage their energy expenses effectively.
Households can consider fixed tariffs for a bit of stability, as suggested by ‘Ofgem’ . This affects 22 million homes in England, Wales, and Scotland.
3. Council Tax
Council tax rates are likely to increase this April. In England, local authorities with social care duties can raise council tax by up to 4.99% without a referendum or local vote. Smaller councils without social care duties can increase bills by up to 2.99%. Some councils, such as Bradford and Newham, are allowed to bypass the cap.
In Scotland, council tax rates could jump by as much as 10%, while in Wales, they might rise by up to 15% in some areas. Northern Ireland uses a domestic rates system instead of council tax.
4. Car Tax
The standard rate of car tax is increasing by £5 to £195 per year for cars registered after April 2017. However, this may not be the case for all vehicles, depending on their age and fuel type.
One significant change is that electric vehicles (EVs) will no longer be tax-exempt. From April 2025, EVs registered before then will pay the lowest rate of £10 in the first year, followed by the standard rate.
5. Broadband, Phone, and TV Licence
Mobile and broadband providers must now tell customers about price rises in pounds and pence, as well as when they occur. This affects new customers, while existing customers may face different increases depending on their contract start date.
For example, EE customers with a mobile Sim-only contract might see their bill increase by £1.50 per month or £18 per year. Virgin Media broadband customers will face a 7.5% rise in bills, but those who took out contracts after January 9th this year will pay more.
A broadband, phone, and TV licence is a government-issued permit that allows individuals to access internet services, make phone calls, and watch live television.
In many countries, these licences are mandatory for households with internet-enabled devices.
The revenue generated from licence fees funds the development of communication infrastructure, including fibre-optic cables and broadcasting networks.
Licences often come with conditions, such as requirements for device registration or data caps.
The cost of a TV licence is also increasing, with black and white TVs seeing a rise from £58 to £58.50, while colour TVs will increase by £5 to £174.50.
6. Stamp Duty
House buyers in England and Northern Ireland will start paying stamp duty on properties over £125,000 instead of £250,000. First-time buyers currently had no stamp duty on homes up to £425,000, but this is dropping to £300,000.
7. Hidden Tax Rises
The government has kept the freeze on tax thresholds for income tax and National Insurance until 2028. This amounts to a stealth tax due to a process called ‘fiscal drag,’ where more people are being pushed into higher tax brackets as wages rise.
- bbc.com | The seven bills going up this week
