The 11 household bills rising in 2025 and how to beat them
HOUSEHOLDS can expect to see at least 11 household bills increase in 2025 as the cost of living continues to rise.
Bills could potentially increase by hundreds of pounds, but there are ways you can limit the impact.
These are the 11 bills set to increase in 2025, and tips to make sure you aren’t hit by surprise costs…
1. Food costs
Experts have warned that food prices are set to rise by almost 5% next year as food manufacturers and supermarkets pass on higher costs.
Many retailers have warned customers to expect price increases after chancellor Rachel Reeves unveiled dramatic tax increases for employers in October’s budget.
While the Bank of England forecast food prices would rise by only 1.1% throughout 2025, retailers and economists believe this is overly optimistic.
Supermarkets including Sainsbury’s, Morrisons and Marks & Spencer have all warned that shoppers will face higher prices because of higher taxes in the Budget.
Meanwhile, Wetherspoons has said that food and drink prices will have to increase.
Accordingly, experts at the Institute of Grocery Distribution (IGD) have predicted the cost of food items will rise by up to 4.9% in the next year.
What can I do about it?
There are plenty of ways to save on your grocery shop and ensure you’re always getting the best price.
One of the easiest is to look out for yellow or red discount stickers as you shop.
Plenty of supermarkets also run wonky veg and fruit schemes where you can get cheaper prices on misshapen or imperfect produce.
Going own brand can also be an easy way to save hundreds of pounds a year on your food bills.
This means ditching “finest” or “luxury” products and instead going for “own” or “value” lines.
Making a list should also save you money, as you’ll be less likely to make rash purchases when you get to the supermarket.
You can also check which supermarket is offering the best deals on your favourite groceries using a comparison site like Trolley.co.uk
2. Energy bills
Households have already seen their energy bills rise in 2025, when the price cap was increased on January 1.
The energy price cap rose by one per cent, taking the typical bill from £1,717 to £1,738.
The price of electricity rose from 24.50p per kWh to 24.86p.
Meanwhile, the price suppliers can charge for gas increased from 6.24p per kWh today, to 6.34p.
And, it’s now being predicted that the price cap will increase again from April 1.
The April rate will be announced in February and analysts at Cornwall Insight have raised their previous forecast suggesting homes will face a near-three per cent increase.
The amount your bill goes up will depend on your usage and how you pay.
Bills will only change if you’re on a variable tariff. If you’re on a fixed tariff, your rate will be unaffected.
The energy price cap is reviewed every three months and further changes to the cap will be made in July and October.
What can I do about it?
There are a number of different ways to get help paying your energy bills if you’re struggling.
If you fall into debt, you can approach your supplier to see if they can put you on a repayment plan.
This involves paying off what you owe in instalments over a set period.
Several energy firms have grant schemes available to customers struggling to cover their bills.
But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.
Thousands of vulnerable households are also missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
3. Mortgages and borrowing
Financial pressures could also see the Bank of England increase interest rates, which will have a knock-on effect for borrowers.
The Bank of England‘s Monetary Policy Committee (MPC) meets twice every quarter to decide if bank interest rates need to rise.
If the bank decides to raise interest rates it makes the cost of borrowing, including loans, credit cards and mortgage repayments more expensive.
In November, the MPC reduced the base rate from 5% to 4.75%.
It was only the second rate cut since 2020, but Brits may now have to wait longer for another rate cut as October’s Budget raised the risk of inflation remaining higher.
Further meetings of the MPC will be held on:
- March 20
- May 8
- June 19
- August 7
- September 18
- November 6
- December 18
What can I do about it?
If you are due to come off a cheap fixed mortgage deal in the coming months, it’s important to prepare early.
Lenders typically move households onto a more pricey SVR once your mortgage deal comes to an end.
That means you could have been on one of the best mortgage deals and suddenly your monthly repayments will increase.
But households can start looking for a new mortgage up to six months before their deal ends.
We’ve explained how you can find the best mortgage deals.
Savers wishing to boost their nest egg should search around to see if they can get better returns with another bank or building society.
We’ve previously explained how to find the best savings rates.
4. Stamp Duty
Those buying property will face higher stamp duty bills from April when thresholds fall.
The government has confirmed that temporary increases to stamp duty thresholds, that had made the cist of buying lower, will not be extend.
Currently, first-time buyers are exempt from paying stamp duty on properties priced up to £425,000.
If a property is more expensive, they only pay tax at 5% on the portion above £425,000 and up to £625,000.
As a result, 80% of first-time buyers are not liable for any stamp duty, while only 14% are required to pay a reduced rate, according to property site Zoopla.
All other buyers pay stamp duty only above the threshold of £250,000.
When thresholds fall first-time buyers will need to pay stamp duty on purchases over £300,000, with all other buyers footing the tax on everything over £125,000.
As a result, buyers will need to pay stamp duty on 93% of properties for sale in England from April 2025.
Anyone buying a second home will also see stamp duty charges increase from 3 to 5 per cent from April.
What can I do about it?
To avoid the stamp duty increases buyers will need to complete their purchases by April 1 2025.
There are a number of things buyers can do to maximise their chances of a quick completion including ensuring your credit score is the best it can be and getting all your documents in order.
However, some experts have warned that the rush to buy ahead of the deadline could artificially elevate house prices, so carefully consider whether rushing your purchase will save you money in the long run.
5. Alcohol duties
In February, changes to alcohol prices announced in October’s Budget will come into affect.
These include a 1.7% reduction in duties on draught products, such as beer and cider sold on tap.
The government has said this reduction will cover 60% of booze sold in pubs and will see drinkers save 1p on the price of every pint.
Non-draught products will see duty increase by the retail price inflation rate, which was 3.4% in October.
However, although this move had been expected to see a saving of 1p a pint at the bar, increases to employer cost mean drinkers are less likely to see pubs introduce bargain prices.
What can I do about it?
If you’re looking to save money, it might be better to go for draught products rather than bottled drinks when at the pub in 2025.
If you’re buying alcohol in supermarkets, the cut in duties will not apply, but you can still check prices using comparison sites such as trolley.co.uk.
6. Rail costs
Millions of travellers will pay up to 4.6% more for train tickets from March.
Following the increase, a yearly ticket from Rugby, in the Midlands, to London will rise by £496.62 to £11,292.62.
And the commute from Milton Keynes, Buckinghamshire, to London will leap by £357.33 to £8,125.33.
Typically, each year the government uses the July Retail Price Index (RPI) measure of inflation to work out how much ticket prices will go up.
Last year, the government stepped in to cap this year’s rise at 4.9%.
About 45% of fares on Britain’s railways are regulated by the Westminster, Scottish and Welsh Governments.
They include season tickets on most commuter journeys, some off-peak return tickets on long-distance routes, and flexible tickets for travel around major cities.
Train operators set rises in unregulated fares, although these are likely to be very close to changes in regulated ticket prices.
What can I do about it?
There are a number of ways you can limit the impact of price increases on your rail fares.
If you’re taking a lengthy train journey, then you could save hundreds of pounds by splitting your tickets.
You won’t need to change trains and National Rail lets you split your ticket as long as the train calls at the station you buy the tickets for.
One site that works this out for you is Splitticketing.co.uk.
Regular travellers should be able to save by purchasing either a seven day, monthly or annual season ticket, which will allow them to make the journey an unlimited number of times as long as it’s valid.
If you’re making the same journey on three or more days a week, then a seven-day season ticket is likely to save you money, compared to buying a new one every day.
You can check to see if a season ticket will save you money on your trip with National Rail’s season ticket calculator.
If you often travel back and forth to London on the train but you don’t go regularly enough to buy season ticket, you might save with a Carnet ticket.
They offer a 10% discount on plenty of routes and tickets are valid for three months.
If you’re not a regular traveller you can save money by booking as far in advance as possible, with prices typically increasing closer to the travel date.
7. Mobile and broadband bills
Mobile and broadband providers have historically increased their prices annually based on the rate of inflation plus an extra 3.9%.
However this year new rules mean providers have been required to set out in pounds and pence what changes to prices will occur at the point a contract is signed.
Inflation rates meant millions of customers faced hikes of up to 8.8% in 2024 — adding as much as £50 to bills.
But, the changes mean this year providers need to inform customers exactly how much bills will increase by.
What can I do about it?
While you’re far less likely to get a nasty surprise this year if you’re unhappy with your contract switching is the best thing to do.
This is easier if your contract is coming to an end. if you’re mid-term it’s important to check if you might have to pay an exit fee.
In the weeks before your contract is up, use comparison sites to familiarise yourself with what deals are available.
Sites like MoneySuperMarket and Uswitch all help you customise your search based on price, speed and provider.
This should make it easier to decide whether to renew your contract or move to another provider.
However, if you do not want to switch and are happy with the service you’re getting under your current provider – haggle for a better deal.
You can still make significant savings by renewing your contract rather than rolling on to the tariff you’re given after your deal.
8. Council tax bills
The government has confirmed that councils will be free to increase Council Tax by up to 5% in April.
The move will see bills in the average band D family household increase by £109.
The national limit on how much council tax can be raised is set by the government every year.
It’s then up to each local authority to decide if it will choose the maximum and some may decide to increase council tax by less.
Whatever the increase is, it will be added to bills from April.
It’s important to bear in mind that each council sets their own rates and that what residents actually pay is determined by your council tax band.
Bands are based on your home’s value – the more expensive the property, the more council tax will be charged.
What can I do about it?
If you are on a low income or receiving benefits, you could be eligible for some help towards your council tax.
Those on low incomes can get their council tax bills reduced by up to 100%.
If you find yourself struggling to pay your bill, you may also be able to get a deferral or speak to your council about setting up a payment plan to manage the cost.
But one thing to remember is if you are struggling you should contact your council as early as you can.
Discounts can vary between council’s so it’s important to check with your local authority what you may be entitled to.
9. Water bills
Ofwat has warned customers that water bills in England and Wales will rise by an average of £31 per year over the next five years.
Household water rates are typically increased from April each year and Ofwat has said customers can expect to see their bills increase by 36% by 2030.
Despite the average annual increase over the next five years being £31, households should be prepared to see a significant hike of £86 or 20% in the next year, followed by smaller percentage increases in each of the subsequent four years.
Currently, the average water bill stands at £448 per year. This increase would see it climb to £479 in spring.
The exact amount your bill will rise from will depend on where you live, how much you’re charged and the rate it’s increasing by.
Different areas of the country have a water company assigned to them, and that company is responsible for setting the costs of bills and the rises for residents.
And, unfortunately, you can’t simply switch to another one when you’re unhappy like you can with other utilities.
What can I do about it?
Moving to a water meter could help you save some extra cash.
Obviously, if you do use a lot of water then it makes no sense to have a meter as your bills could go up.
The Consumer Council for Water offers a free water meter calculator that’ll tell you if you can save by fitting a water meter.
For example, if you have a big family and more people than bedrooms or simply use lots of water-intensive appliances like washing machines or dishwashers, a fixed fee will be better for you.
Having a water meter doesn’t help with the standard charge that’s based on where you live either, but it can help you cut down the costs of your personal usage at home.
Part of that is how long you spend in the shower too.
According to Uswitch you could cut £70 from your energy bills and reduce your water bills too by reducing your wash time.
And leaving the water running while you brush your teeth could add £60 a year to your bills says Octopus.
The same goes for washing dishes, be sure you turn the tap off as if you’re doing it in the sink, leaving it running will add £25 to your annual bill.
Many water companies offer free water-saving devices that shave pounds off your bills too.
Contact your supplier or check out savewatersavemoney.co.uk.
10. Flight costs
Air Passenger Duty (APD) will be increased from April 1 2025, meaning flight cost increases for all.
APD is a tax on flights departing from UK airports, and the planned increase will add up to £2 to the cost of an economy ticket for a short-haul flight.
A further increase is planned from April 1 2026.
The increase means passengers will pay a minimum of £15 per person in taxes to the government from April 2026 if flying short haul to Europe.
What can I do about it?
Experts have shared a number of tips on how consumers can secure the best prices on flights.
Michael O’Leary, CEO of Ryanair, has said booking flights in the first two months of the year could make them cheaper.
He revealed that fares will often be sold at a loss during January and February in order to fill planes up.
The same is said for the dates just before the peak school holidays.
Opting for an unsociable, early-morning flight can also save you money, while also improving your chances of getting a better seat.
Wherever you’re going it’s important to shop around and use comparison sites such as Google Flights to make sure you get the best deal.
11. TV licence
The BBC licence fee will increase in line with inflation to £174.50 from April 2025.
It will be an increase of £5, or an extra 42p a month.
Further inflationary increases are expected in 2026 and 2027.
The household payment funds much of the BBC‘s operations and it can be paid monthly, quarterly or annually.
What can I do about it?
You only need to have a TV licence to watch live programming, so if you only use streaming services you could consider not paying for one.
You can claim a free TV licence if you’re 75 or older and either receive Pension Credit yourself or live with a partner who gets Pension Credit.
You can apply for a free licence when you’re 74, but will still have to pay until the end of the month before your 75th birthday.
You can apply for your free licence online or by calling 0300 790 6071.
You could also be eligible for a discounted TV licence if you live in residential care or sheltered accommodation, or if you’re registered blind.
How to save on your energy bills
SWITCHING energy providers can sound like a hassle - but fortunately it's pretty straight forward to change supplier - and save lots of cash.
Shop around – If you’re on an SVT deal you are likely throwing away up to £250 a year. Use a comparion site such as MoneySuperMarket.com, uSwitch or EnergyHelpline.com to see what deals are available to you.
The cheapest deals are usually found online and are fixed deals – meaning you’ll pay a fixed amount usually for 12 months.
Switch – When you’ve found one, all you have to do is contact the new supplier.
It helps to have the following information – which you can find on your bill – to hand to give the new supplier.
- Your postcode
- Name of your existing supplier
- Name of your existing deal and how much you payAn up-to-date meter reading
It will then notify your current supplier and begin the switch.
It should take no longer than three weeks to complete the switch and your supply won’t be interrupted in that time.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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