‘Awful April’ Sees Rising Costs for Households, Businesses, Homebuyers, and Drivers

Tory Party leader Kemi Badenoch called the increase in employer taxes ‘a direct hit on working people’ which will crush businesses and result in fewer jobs.

File photo of an online energy bill from Feb. 3, 2022. Jacob King/PA Wire

From Tuesday, households will see widespread bill hikes, including higher costs for energy, water, and council tax, along with potential increases in mobile, broadband, and car tax—marking what has been dubbed “Awful April.”

Britons will see energy bills rise by 6.4 percent after Ofgem increased its price cap for the third time in a row, adding £111 a year to the average household.

The National Energy Action estimates this will push the average annual cost of energy up to a total of £1,849, with the charity’s Chief Executive Adam Scorer saying the rise “is another blow for the millions of households struggling with the cost of energy.”

Water in England and Wales will also increase by an average of £86 a year. Ofwat has allowed water companies to raise bills by 36 percent over the next five years to pay for upgrades to infrastructure. However, some suppliers are charging much higher, with Southern Water customers facing a 53 percent increase by 2030.

Many councils are set to raise bills by a maximum of 4.99 percent, with some, like Bradford, being granted permission for a 9.99 percent hike.

A TV Licence for a colour set will also increase by £5 to £174.50 a year, with the price of a black and white set increasing from £57 to £58.50.

Wage Increases

Despite the rise in household bills, Prime Minister Sir Keir Starmer has insisted that the increase in the minimum wage—which will go up from £11.44 to £12.21 an hour—and interest rate cuts by the Bank of England will help families across the country.

Starmer told Sky News’s Beth Rigby on Tuesday: “I think for most people, they would say the cost-of-living crisis is ongoing, and they feel the pressure financially.

“That’s why it’s so important we make good on our pledge that people would feel better off. The national living wage going up today by an average of £1,400 [a year] is going to affect millions of people. In their pay packet this month, and obviously for months to come, they will now be getting more money.”

However, the prime minister acknowledged that people see that rise in bills “and that is a pressure.”

“But that is why it’s so important we deliver on the national living wage, to make sure people are better off. £1,400 is quite a significant amount of money for millions of workers,” he said.

From April 6, employer national insurance contributions (NICs) will also increase to 15 percent and the threshold at which the tax starts being paid is slashed from £9,100 to £5,000.

After the increases were announced in October’s budget, retailers warned it will result in higher prices for customers and job losses, as businesses will not be able to cope with higher NICs and wages.

Telecoms, Cars, and Homes

Higher utility and council tax bills are just one part of the rising costs hitting consumers.

Those whose broadband contracts linked to inflation will see the cost of their internet rise by an average of £21.99 a year.

Mobile phone users face similar rises, though some providers like Vodafone and Virgin Media have frozen prices until 2026 for those who switched before April.

The standard rate of car tax will also rise by £5 to £195, and electric vehicle owners will be subject to car tax for the first time.

Prime Minister Sir Keir Starmer during a visit to Nationwide Building Society in London, England, on April 1, 2025. Ian Vogler/Daily Mirror/PA Wire

Also from today, homebuyers in England and Northern Ireland could be paying thousands more as stamp duty discounts are reduced, adding to financial pressures.

From April 1, the nil rate threshold for first-time buyers has reduced from £425,000 to £300,000. For home movers, that threshold has halved from £250,000 to £125,000.

The change follows a temporary increase to thresholds put in place by the Conservatives in 2022, which was scheduled to revert at the end of March 2025.

Food Inflation

The British Retail Consortium (BRC) reported on Tuesday that food inflation rose last month, climbing 2.4 percent year-on-year—up from 2.1 percent in February and exceeding the three-month average of 2 percent, according to its shop price index.

BRC Chief Executive Helen Dickinson said retailers were doing all they can to prevent passing on the higher costs to customers.

A shopper walking through the aisle of a Tesco supermarket in London, England, on Sept. 3, 2022. Yui Mok/PA Wire

Dickson said: “With retailers bracing for significant extra costs which kick in later this week as a result of the Budget, inflation will likely accelerate in the coming months.

“Along with new packaging taxes later this year, retailers will be shouldering an additional £7bn in costs. It is crucial that the Employment Rights Bill and business rates reform don’t further inflate costs and increase red tape.”

£3,500 Worse Off

Conservative Party leader Kemi Badenoch called the increase in employer taxes “a direct hit on working people” which will crush businesses, result in fewer jobs, and cost families £3,500 by the end of this parliament.

She wrote on social media platform X: “Hiring will become more expensive, impacting everyone—including young people who depend on entry-level jobs to kickstart their careers.

“Employers will face tough choices: halt hiring, cut wages, or shut down.”