In April 2025, most of us saw another rise in many of our household bills - from energy and water, to rent, subscriptions and even the TV licence. These rising costs have left millions of people feeling overwhelmed and unsure of how to manage their monthly expenses.
While inflation, global events, and changes in government policies all have an impact, it can be confusing to figure out exactly why everything suddenly costs more.
In this blog, we’ll discuss the reasons behind the rising bills in the UK and what they mean for your everyday life. We’ll also share some tips to help you cope with these changes and save money where you can, to hopefully help you feel more in control of your finances.
If you’re finding it more difficult to make ends meet, this guide will help you better understand and manage the challenges ahead.
What’s Causing Bills to Rise Across the UK?
Households across the UK faced significant increases in essential bills in April 2025. Energy costs rose by an average of £111 per year, bringing the typical annual bill to £1,849. Water bills also saw a significant increase, with the average annual charge reaching £603, up by £123 from the previous year.
Council tax also increased, with most local authorities implementing the maximum allowed rise of 4.99%, adding approximately £108 to the average bill. Food prices have also continued to rise, with grocery inflation climbing to 3.8% in April, up from 3.5% in March.
Rising costs - driven by factors such as increased wholesale prices, higher labour costs, and global trade tensions disrupting supply chains - have all placed greater financial pressure on UK households. As a result, consumer confidence has declined, with the GfK Consumer Confidence Index falling to its lowest level since November 2023.
So what does all this mean for you? Businesses costs are going up, meaning they’re passing those costs on to us.
The Impact on Households - Who’s Hit the Hardest?
While these recent rising bills are being felt by everyone, some groups are feeling the pressure more than others.
For instance, low-income families, pensioners, and people on benefits will be among the hardest hit, as a larger portion of their income now has to go toward essentials like energy, water, and food.
Renters, particularly in cities, are also going to feel the pinch, especially with rising council tax and grocery prices. Plus, single-parent households and those with young children are going to find it harder to manage and may be forced to cut back on basics.
Unfortunately, thousands of people will start thinking about skipping meals, heating less, or dipping into their savings just to get by each month in 2025.
How to Cut Back on Energy, Water, and Broadband Costs
Cutting back on household costs doesn’t have to be complicated. To manage these rising bills, unfortunately, you may need to make some adjustments.
For example, you can reduce your energy costs by using a smart meter to optimise your heating schedules. You’ll also need to unplug devices when they’re not in use to prevent “vampire energy” loss, and seal drafts to maintain your indoor temperature.?
When it comes to water bills, the best way to lower your costs is to install water-saving devices like more efficient showerheads and toilet cistern inserts. Plus, it may be time to get on top of any leaks.?
As for your Broadband costs, you can start by reviewing your contract for any mid-term price hikes. If you’re eligible, you could switch to providers offering fixed-price deals or inquire about social tariffs if you're on government support.?
These small changes can add up over time, helping you reduce your monthly bills without giving up essentials.
Government Support Schemes and What You Might Be Eligible For
In 2025, with rising energy, water, car tax, council tax, and broadband bills, the UK government introduced support schemes to help struggling households.
The Household Support Fund provides help with essentials like food and utility bills - you can apply through your local council.
The Great British Insulation Scheme (GBIS) offers free or low-cost insulation for homes with low energy ratings, helping reduce heating costs.
The Energy Company Obligation (ECO4) scheme supports low-income households by offering free upgrades like better heating and insulation.
Many utility providers also offer social tariffs - discounted rates for broadband, water, and energy - if you’re on certain benefits like Universal Credit or Pension Credit.
It's worth checking with your local council and service providers to see what help you may qualify for.
For Urgent Financial Support in Trying Times, Think Salad
The best way to prepare for future challenges is to become more financially resilient. That said, if you find yourself needing urgent financial support to help you keep up all the bill increases, we may be able to help.
Salad is a leading UK direct lender, offering fair and affordable personal loans that are designed to provide you with the funds you need, regardless of your credit score.
Using Open Banking technology, we analyse your current financial situation and spending habits to gauge your loan affordability and provide you with the support you need. As an FCA-regulated and authorised lender, you can trust us to keep your financial data safe.
If you need financial support, consider applying for a personal loan, and for more blogs like this one, visit our blog page.
