Why are bills going up so much? Reasons behind council tax and energy bill price surge

1 April 2025, 11:13 | Updated: 1 April 2025, 12:56

Water bills, gas and electricity and car tax are all set to increase in price this month but why? Here's the latest news and information.

It's been branded 'Awful April' as this month sees a number of household bills go up in price from council tax, to energy bills and even broadband and mobile costs.

With the cost of living crisis showing no signs of slowing down in the UK, thousands of households across the country will see their annual outgoings increase - so why are so many bills going up?

The start of the new tax year for 2025 begins on April 1st which is why we're seeing so many price surges at once. But despite the increase in minimum wage and general increase in wages across the country, this will still impact many struggling families.

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Here's why water bills, council tax, energy bills and more are going up and exactly how much by.

Why are water bills increasing?

Water bills are expected to go up around £10 a month in homes across England and Wales but of course this depends on what company you're with and your individual circumstances such as how much water you use.

The reason behind this price hike is because water companies have said they need to invest in things like building more reservoirs, creaking infrastructures and sewage.

If you live in Scotland, water bills will also increase by around 10% as they need extra money to cope with weather issues brought on by climate change.

Why are council tax bills going up?

The majority of households in England and Wales will see their council tax charges increase from April 1st 2025 due to the rising costs of social care services for older and disabled adults. It's also to help increasing costs of local services, parks and recreation facilities.

In England, local authorities can increase council tax every year by a maximum 4.99% - this could add around £109 to a typical band D home.

However for this year, Bradford, Newham, Birmingham, Somerset, Windsor and Maidenhead areas have all been given permission from the government to go over that percentage, meaning costs could be even higher.

In Wales, rates could increase by as much as 15% and in Scotland, where council tax prices have been frozen or limited in previous years, costs could go up by as much as 10%.

Why are energy prices rising in 2025?

For many of us, gas and electricity prices seem to always be rising and for the first part of 2025, this is happening again.

From April 1st, the energy price cap increased meaning an annual bill for an average house could go up by as much as £111. So what is the reason behind it? International gas prices.

Costs for British energy have gone up, as well as across Europe, due to recent events including the Russia and Ukraine ware, meaning the market has seen huge price spikes in wholesale prices.

Why have car tax prices increased in April?

This all depends on car and when it was first used but in general, car tax prices will increase by £5.

Also electric vehicles, which were previously exempt from car tax, will now also need to pay although it will be low in comparison to petrol and diesel cars.

The reason behind the price hike is because of rates of inflation.