Several household bills are due to go up in April as providers across the board get ready to hike their prices. Many providers have annual inflation-linked price hikes written into their contracts, so not all price rises will come as a surprise to consumers. But taken together, they can add up to a hefty sum each month.
Below, we've outlined the key household bills that are going up in April. We've also outlined some of the bills that are going down to help you plan your monthly budget as accurately as possible.
Water and sewerage bills up by 6%
According to Discover Water, the average combined annual water and sewerage bill in 2024/2025 will be £473. In 2023/2024, this was £445 representing an increase in bills of roughly 6%. The average household will therefore pay an extra £28 per year in water bills, which works out to around £2.33 per month.
Some of the most expensive providers this year are Anglian (charging £529 on average) and Wessex (charging £548 on average). The cheapest providers driving the average down are Northumbrian (charging £422 on average) and Hafren Dyfrdwy (charging £433 on average).
Broadband, TV and phone bills up by 8%
If you're on a broadband, TV or phone contract, you're likely to see your bills go up by up to 8.8% from April 2024. It doesn't matter if you're mid-contract either. If you read the fine print, many of the major broadband providers state that they can raise their bills in line with inflation plus a discretionary percentage every year.
BT, for example, increased their broadband prices by 7.9% while Virgin Media hiked their by 8.8%.
We estimate that broadband customers paying £50 per month will see monthly price increases of around £4 which adds up to £48 per year. If this is a concern, take a look at our article to find out whether you can dodge the broadband price hikes.
TV licence up by £10.50 per year
Your TV licence bill is going up by £10.50 per year. If you want access to BBC iPlayer or if you wish to watch or record live TV on any channel or service, you'll need to pay £169.50 for the privilege from April 2024. A TV licence was £159 before the hike.
If you choose not to pay for a TV licence, you can't watch anything on BBC iPlayer or watch live TV. However, you're free to watch other streaming services like Netflix and DisneyPlus. You can also watch on-demand TV like All4, for example.
Council tax bills up by 4.99% in most areas
Council tax bills in England can be increased by up to 4.99% or 2.99% in England depending on whether they have social care duties or not. The vast majority of councils, close to 95%, have put bills up by 4.99% - the maximum allowed before they need to seek special dispensation from the government. To put this into context, in 2023, approximately 75% of councils opted for the maximum increase.
These price hikes mean that the average Band D household will see an increase of around £103 per year. Certain local authorities, such as Birmingham, Woking, Slough, and Turrough, have special dispensation from the government to raise their council tax by as much as 10%. In fact, earlier this year Birmingham City Council approved a 21% rise in council tax over the next two years after the local authority effectively declared bankruptcy.
If you're worried about council tax rises, find out how to save money on your council tax bill here.
Road tax to rise with RPI
As per the Autumn Statement, road tax for cars will rise in line with inflation from April 1, 2024. It's expected that most car owners already paying road tax will see a road tax rise of £5 to £10 on average. Some petrol and diesel cars will still attract a £0 road tax bill based on their CO2 emissions and date of registration.
Even if you don't technically owe any tax, you need to ensure you're taxing your vehicle via the government website by filling out the relevant form.
A full list of the latest tax rates is available via the government website.
Electricity bills are going down by £238 per year
While many household bills are set to go up, electricity bills are falling which will be good news for many.
In fact, energy bills are expected to fall to their lowest level in two years as a result of the new energy price cap. This will result in a saving of £238 a year from April for the typical household. Predictions suggest that energy prices will fall again in July before rising slightly from October.
If this is of interest, find out more about the latest Ofgem energy price cap announcement and what it means for you, and read about whether it's time for you to fix your energy bills.
National Insurance cuts mean lower tax bills
During the Spring Budget, Jeremy Hunt announced that National Insurance rates for the employed and self-employed will drop by a further 2% from April 2024 after cuts were already announced during the Autumn Statement. Those in employment will see their NI rate fall from 10% to 8% relative to the Autumn Statement, and those in self-employment will see their Class 4 NICs fall to 6% from April 6, 2024.
The exact savings you're likely to make as a result of these cuts depend on your circumstances. An employee on £35,000 will save an extra £37 per month relative to the Autumn Statement. The total NI savings based on both the Autumn Statement and Spring Budget would be around £75. We look at different scenarios and income levels to give you a better idea of the savings you're likely to make in our National Insurance cuts article.
Will I be worse off each month?
Everyone's circumstances differ so it's hard to predict the exact impact these price hikes (and price falls) will have on you. How much you make each month, the car you drive, your broadband provider, your house, and your energy usage all play a role. Some will likely be worse off as a result of these increases, while others might be better off on average. It is also worth remembering that we've only highlighted some of the bills in this article and many of us will already be paying more for our mortgage and rent, as well as other expenses such as food bills and insurance products.
Below, we've summed up whether you're likely to be worse off based on some of the average bill hikes (and falls) we're likely to see.
| Bill type | Assumptions | Monthly average increase or decrease in 2024/2025 |
| Water and sewerage (combined) | National average | + £2.33 |
| TV, broadband and phone | £50/month package with 8.8% increase | + £4.40 |
| TV Licence | Up by £10.50 per year | + £0.88 |
| Council Tax | Average Band D household | + £8.58 |
| Road tax | £10 annual increase | + £0.83 |
| Electricity bill | £238 annual saving | - £19.83 |
| NI cut | £35,000 annual salary | - £37 |
| Total bill increase | Combined total of bill increases per month | +17.02 |
| Total bill decrease | Combined total of bill decreases per month | -£56.83 |
| TOTAL | -£39.81 |
Based on our assumptions above, people on £35,000 with average bills are likely to see their bills go down by around £40 per month. Even if we don't take into account the National Insurance savings, the fall in the energy cap alone would result in an average saving of £19.83, while bills would go up by £17.02 per month. As such, some households would still see a saving of around £2.80.
Of course, everyone's circumstances are different, and this table is only based on some of the key household bills going up (or down) from April. As such, it's hard to draw conclusions about whether individuals will be worse off or better off as a result.
