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More pain to come as household bills could rise by almost £270 in April

by DigestWire member
January 1, 2025
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More pain to come as household bills could rise by almost £270 in April
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The typical household could see major bills rise by almost £270 by April, Sky News analysis suggests.

The increase in costs for energy, water and council tax would outstrip inflation and add to pressure on family budgets.

The first impact will be felt from New Year’s Day, with the domestic energy price cap rising for the second time this winter.

A household paying by direct debit and using the typical amount of gas and electricity will pay an extra £21 – or 1.2% – a year, increasing their bill to £1,738, according to the regulator Ofgem.

But there will be more pain in April when energy analysts Cornwall Insight predict bills will rise a further £52 a year to reach £1,790. That’s an increase of 3%.

April will prove a tough month for struggling households.

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Water bills will rise by an average of £86 in England and Wales under plans agreed by the regulator Ofwat. Increases in Scotland are expected to be announced in the next few weeks.

Bus cap rises across England today but Labour mayors buck national trend

Energy price cap now expected to rise in April as bills increase again in January

Time running out as deadline looms to apply for winter fuel payment worth up to £300

And council tax is also expected to rise in April. Local authorities that provide social care can increase bills by 5%, without government permission or a local referendum.

Read more:
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That would add £109 to the bill for an average band D home.

UK inflation is currently 2.6% – below the rise in bills.

The increase in energy prices will hit households at the coldest time of year, when many pensioners have had their winter fuel payment withdrawn.

It also comes amidst wider gloom in the UK economy.

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Latest figures from the Office of National Statistics show there was zero economic growth in the third quarter of last year, and businesses have warned the hike in employers’ national insurance contributions will hit jobs and pay.

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