What financial changes could affect you in April?

April is a big month for your money, with many changes in bills, benefits and day-to-day expenses that might affect you directly.

So let’s take a look at what’s happening and what you need to be aware of.

Household bills and utilities

Keeping your home running looks set to become more expensive next month.

Council tax

Most households are set to see their council tax bills go up by almost 5% in April.

In fact, figures from the PA news agency show that more than eight in 10 (82%) upper-tier authorities in England - 125 in total - will raise council tax by at least 4.99%.

If you’re struggling to pay council tax or worried about the increase, remember that you may be eligible for discounts, exemptions or other support. 

Energy

The US-Israel war with Iran has caused global oil prices to surge, and many households are worried about what this could mean for their bills later in the year.

But the energy price cap will actually fall by 7% in April. 

That means the cap will drop by £117 to £1,641 a year for a typical dual fuel household - around £10 a month back in your pocket if you use gas and electricity.

Of course, we don’t know what will happen after July, but for now at least, that will be good news for many hard-pressed households.

If you’re struggling to keep up with your energy bills, speak to your supplier as soon as possible. 

They might be able to offer grants, payment plans and advice on managing your account.

Water 

Water bills in England and Wales are going up by around £33 a year (5.4%) - bringing the average bill to £639.

And in Scotland, they’ll increase by about £42 a year (8.7%) to an average of £532. 

So if you’re worried about your bills, it could be worth finding out if you’re eligible for social tariffs.

Many water companies offer a social tariff scheme for people on low incomes, and depending on your situation, your bill could be reduced by up to 90%.

Each water provider runs its own scheme, so check what’s available where you live.

Broadband

Many broadband firms are putting up costs by up to £4 a month - and that will apply to many people mid-contract.

So if you’re out of contract, now could be a good time to shop around and see if you can get a better deal elsewhere.

Alternatively, you might be eligible for social tariffs if you receive universal credit or claim other benefits.

They often cost just £12 to £20 a month, about half the price of standard deals, and they can save you around £200 to £250 a year.

Mobile phone

Like broadband, many mobile contracts include mid-contract price rises.

If you want to leave your contract early, you’ll usually need to pay a fee. 

But in some cases, switching to a much cheaper deal could still save you money overall, so maybe compare options before making any decisions.

Other everyday costs to watch

It’s not just basic utilities that are getting more expensive in April.

TV licence

From the start of next month, the annual cost of a TV licence will rise to £180.

That means the cost of an annual colour TV licence will increase by £5.50 - or 46p a month. 

You don’t need a TV licence if you only watch shows that aren’t being broadcast live.

But if you watch or record live TV, or watch anything on BBC iPlayer, you must have a licence.

Car tax

For most cars registered from April 2017, the standard rate will rise from £195 to £200 a year.

Rates for older vehicles are going up too, depending on the type of car.

Stamps

First and second class stamps are set to go up in price next month.

From 7 April, a first class stamp will cost £1.80 - an increase of 10p.

Meanwhile, a second class stamp will go up by 4p to 91p.

Passports

Passport application fees are set to increase, so renewing or getting a new passport will soon cost more.

If you apply online:

• the cost of an adult passport will go up from £94.50 to £102
• the cost of a child passport will rise from £61.50 to £66.50

If you apply by post, it’ll cost you even more:

• an adult passport will go up from £107 to £115.50
• a child passport will increase from £74 to £80

If you need your passport urgently, the cost of the one-day premium service will go up from £222 to £239.50.

So you could save money by applying online, and if your passport is due for renewal, it could be worth applying before prices go up.

Changes to benefits, wages and support

At a time that so many prices are going up, there are some positive changes when it comes to welfare and cost-of-living support.

Two-child benefit cap ending

The cap on the number of children you can claim benefits for has been scrapped - a move that ministers believe will lift 450,000 children out of poverty by the end of this parliament.

Benefits going up 

From next month:

• Most inflation-linked benefits (including key disability benefits and tax credits) will rise by 3.8%, matching the Consumer Prices Index (CPI) rate for September 2025.
• Universal credit standard allowances will go up by more than inflation, thanks to an extra uplift introduced in the Universal Credit Act 2025.
• State pension and pension credit will rise by 4.8%, in line with growth in average weekly earnings.
• Child benefit and guardian’s allowance will also increase from April 2026.

National living wage increasing

The national living wage will increase by 4.1% to £12.71 an hour.

This will apply to full-time workers aged over 21 and works out to a pay increase of £900 a year.

Meanwhile, the national minimum wage rate for 18 to 20-year-olds will go up by 8.5% to £10.85 an hour.

Workers aged 16 and 17 and those on apprenticeships will see a 6% increase, taking the minimum wage up to £8 an hour.

Prescription charges to be frozen

The freeze on NHS prescription charges in England being extended for another year.

The cost of a single prescription will stay at £9.90, which the government believes will save patients around £12m next year.  

Three-month and annual prescriptions prepayment certificates will also be frozen for the next year, at £32.05 and £114.50 respectively.

New cost-of-living support scheme to launch

A new support scheme to help households struggling with rising living costs will launch in April.

Under the Crisis and Resilience Fund, councils in England will get multi-year funding so they can provide targeted help to those who need it most, and help people become more financially resilient in the longer term.

The fund will run for at least three years and replaces the current household support fund, which was typically renewed in six-month cycles, creating uncertainty for councils and the people they support.

Don’t forget to check your tax code

Your tax code tells your employer or pension provider:

• how much tax-free income you can have
• how much tax to take from your pay 

But if it’s wrong, you could end up paying more tax than you need to.

So now could be a good time to make sure your code is correct and that you’re being properly taxed.

According to accountancy firm UHY Hacker Young, more than five million people paid £3.5bn more than they needed to in income tax during 2023-24, largely because of tax code errors.

Try our household bills calculator

When you’re worrying about the impact of rising costs, it can help to see the bigger picture.

Our free and interactive household bills calculator gives you a personalised forecast of how your monthly costs could change.

It only takes a couple of minutes to use and shows how bills may change based on where you live.

Once you’ve done this, you can take the next step by using our handy budget planner to map out your monthly finances. 

It’s free and easy to use.

And if you’re struggling to keep up with household bills, remember that you might be entitled to some support.

We can check you’re getting all the benefits you’re eligible to claim with our benefits calculator.