Bills Increases - Robinsons London

Bills Increase

Bills Increases

May 12, 2025 Lauren Bailey Comments Off

 

Bills Increase: What’s Going Up and How It Affects You

The start of April brings with it a raft of bill increases that could stretch household budgets even further. From energy to council tax and car costs, several key expenses are on the rise. However, in some cases, there are steps you can take to reduce the financial impact.

Here are seven common bills where you may notice changes—and what you can do about them.

 

  1. Water Bills

Water bills increase for households in England and Wales, with an average increase of £10 per month. The size of the increase varies depending on your water supplier:

– Southern Water customers face one of the steepest hikes, with bills increasing by 47% to £703 a year.

– Anglian Water customers will see a 19% rise, bringing average bills to £626 a year.

The water industry is front-loading investment over the next five years, meaning 2025 will see the most significant increases. These funds are intended for upgrades to aging infrastructure, sewage systems, and the construction of new reservoirs.

 

Bill amounts vary depending on whether your home has a water meter and your overall consumption.

In Scotland, water bills are going up by nearly 10%. Scottish Water says these funds are needed to prepare for the growing impact of climate change, including drought and heavy rainfall.

In Northern Ireland, households are not directly billed for water.

 ✅ Tip: Reduce your water bill by using water-saving devices, opting for showers over baths, and checking your statement for any irregularities.

 

  1. Energy Bills

From April, energy costs for the average UK household are rising by £111 a year, bringing the typical annual bill to £1,849.

This change follows Ofgem’s increase to the energy price cap, prompted by higher wholesale costs and inflation. The cap affects 22 million households in England, Scotland, and Wales and limits the unit price of gas and electricity—not your total bill. Therefore, the more you use, the more you’ll pay.

Standing charges—a fixed cost for access to gas and electricity—are:

– Increasing for gas

– Decreasing for electricity

– But overall charges vary by region

 ✅ Tip: Ofgem advises considering fixed-rate tariffs, which offer more certainty. However, these deals could lock you into higher rates if energy prices later fall.

 

  1. Council Tax

Across the UK, most households will see council tax increases in 2025–26:

In England, councils providing social care can increase tax by up to 4.99% without a public vote. Some councils (e.g. Birmingham, Bradford, Newham) have permission to exceed this cap.

In Scotland, where council tax has largely been frozen since 2007, some areas will now see increases of over 10%. The Scottish government is offering councils an extra £1 billion to reduce the size of hikes.

In Wales, rises of up to 15% have been reported. Although the Welsh government allocated £253 million to local authorities, councils warn it’s not enough.

– Northern Ireland uses a domestic rates system instead of council tax. All councils there are increasing rates this year.

 ✅ Tip: Check if you’re eligible for discounts or exemptions—such as for living alone, being a student, or living with someone who is severely mentally impaired.

 

  1. Stamp Duty

From April, stamp duty thresholds are changing in England and Northern Ireland:

– Buyers now pay stamp duty on properties priced over £125,000, down from the previous £250,000 threshold.

– First-time buyers will now only get full relief on homes priced up to £300,000, reduced from £425,000.

This has led to a rush of buyers attempting to complete purchases before the new rules take effect.

 

 ✅ Tip: The amount of stamp duty you pay depends on the purchase price, property use, and whether you own any other properties. Use HMRC’s calculator to estimate your costs.

 

  1. Broadband, Phone, and TV Licence

Telecom costs are also climbing, with increases varying depending on your provider and when your contract started.

New Ofcom rules require providers to clearly display price increases in pounds and pence, but this only applies to new contracts.

Examples:

EE sim-only users on new contracts will pay £1.50 more per month, or £18 a year.

Most existing EE customers will see a 6.4% increase, tied to inflation plus a fixed charge

Virgin Media broadband customers face an average 7.5% hike. Those with contracts signed after 9 January 2025 will see monthly bills go up by £3.50.

 

Meanwhile, the TV licence fee is rising by:

– £5, bringing the total to £174.50

For black-and-white TVs, the cost increases by £1.50 to £58.50

 ✅ Tip: Consider bundling services or switching providers when your contract ends to save on telecom costs.

 

  1. Car Tax

If you own a car, your Vehicle Excise Duty (car tax) is likely increasing this year.

– For vehicles registered after April 2017, the standard rate is rising by £5 to £195 annually.

– The exact amount depends on the vehicle’s registration date and fuel type.

 

Key change: From April 2025, electric vehicles (EVs) will no longer be exempt:

EVs registered from this date will pay £10 in the first year, then move to the standard rate in subsequent years.

EVs registered after April 2017 will also transition to the standard rate.

 ✅ Tip: Check your vehicle’s tax band on the DVLA website.

 

  1. Hidden Tax Rises (Frozen Thresholds)

Although income tax rates haven’t gone up, tax thresholds remain frozen until 2028, effectively increasing the amount many people pay through a process known as fiscal drag.

As wages rise, more people move into higher tax bands, even though tax rates stay the same.

According to the Office for Budget Responsibility:

By 2028-29, nearly 4 million more people will pay income tax

– 3 million more will fall into the higher-rate tax band

 ✅ Tip: Use salary sacrifice schemes (e.g., for pensions or cycle-to-work plans) to reduce taxable income if available through your employer.