Our finances are set to take another hammering, with everything from water to mobile bills set to rise next month. Thankfully, there are steps we can take to minimise some of them.
It’s no secret that life is about to get more costly.
The money we have to pay for all sorts of regular bills is set to increase in the weeks ahead, putting stressed finances under greater strain.
Here are some of the big bill changes coming this month.
Mobile, broadband and pay-TV bills
Many of us rely on mobile phones and internet connections but the bad news is a lot of providers are hiking their bills in April.
Many have it written into their contracts that they can increase bills in line with inflation each year, and those increases tend to take place around the start of the new tax year.
For example, Virgin Media and O2, which merged in 2021, are increasing prices by an average of 8.8%, while BT is upping average bills by 7.9%, as is EE.
As you may have noticed, all of those figures are much higher than the actual rate of inflation.
That’s because providers are pretty sneaky and hike bills by inflation plus a certain percentage.
What can you do to fight back?
If you're out of contract, then switching now could be a good move.
In fact, given the size of the hikes being rolled out, even those currently locked into a deal may find they’re better off paying an exit penalty and switching to someone cheaper.
Water bills
The monthly money spent on our water is going to be increasing within a couple of weeks too.
Water bills are going up by an average of around £27.40 a year for the coming financial year, taking the average to £473.
Of course, the actual size of your bills ‒ and the amount they are being increased by ‒ will vary depending on your location and usage.
Some areas will be paying up to £548 a year after increases of around 9%.
Water supplier |
Average water bill 2023/24 |
Average water bill 2024/25 |
Change |
Percentage change |
Anglian |
£492 |
£529 |
£37 |
7.5% |
Dŵr Cymru Welsh Water |
£498 |
£492 |
-£6 |
-1.2% |
Hafren Dyfrdwy |
£372 |
£433 |
£61 |
16.4% |
Northumbrian |
£391 |
£421 |
£30 |
7.7% |
Severn Trent |
£419 |
£438 |
£19 |
4.5% |
South West |
£526 |
£536 |
£10 |
1.9% |
Southern |
£439 |
£479 |
£40 |
9.1% |
Thames |
£456 |
£471 |
£15 |
3.3% |
United Utilities |
£443 |
£481 |
£38 |
8.6% |
Wessex |
£504 |
£548 |
£44 |
8.7% |
Yorkshire |
£446 |
£466 |
£20 |
4.5% |
What can you do to fight back?
Council Tax
One of the big monthly expenses most of us have to account for is Council Tax. And unfortunately, it’s yet another bill that’s about to become more expensive.
Most local authorities are planning to hike bills by 5%, the maximum allowed without having to call a local referendum, though the size of the bill increase will vary based on your location.
As we have explained here on loveMONEY, around three-quarters of councils are planning the maximum increase permitted, which would mean a typical £99 extra for a Band D property.
Rural areas may see more substantial increases in cash terms though.
What can you do to fight back?
While there isn't much most of us can do about Council Tax hikes, there are some who might be able to reduce their monthly bill - as we explain in this guide.
Car tax
Car tax, or to use its proper name of Vehicle Excise Duty (VED), will increase in line with inflation and the Government uses the retail prices index (RPI) measurement.
The actual amount of tax you pay will depend on factors such as the type of vehicle, when it was first registered, engine size, list price when new and CO2 emissions.
For example, cars registered on or since 1 April 2017 pay a first-year rate based on their emissions levels, followed by a standard rate in the years of ownership thereafter.
We’re still waiting for a more detailed breakdown of increases from the DVLA.
However, most observers expect the standard flat rate to rise by at least £10 to £190 in April.
Stamps
The cost of sending a letter is also rising yet again.
The price of a first-class stamp will now cost £1.35. It rose from 95p to £1.10 in April 2023 and then increased to £1.25 in October.
Second-class stamps are becoming more costly too, increasing by 10p to 85p.