The year of 2025 is set to be another big one for your finances – with a raft of key deadlines and bill hikes for you to be aware of.
Energy bills, train fares, council tax and the TV licence are just some of the everyday expenses that are set to become more expensive. On top of this, there are new rules for broadband and mobile firms coming in that will affect how much they can put your monthly bill up by.
Other changes you need to be aware of including a major update on stamp duty rules, plus a key National Insurance deadline that could impact how much state pension you get in retirement. We explain everything you need to know below.
January 1 – Ofgem energy price cap rises
The Ofgem energy price cap will rise from £1,717 a year to £1,738 on January 1. This represents someone with typical energy usage who pays by direct debit – your bill can be higher or lower than this, depending on how much gas and electricity you use. Ofgem updates its price cap every three months, so it will change again in April, July and October.
January 15 – first inflation update of the year
The latest inflation data from the Office for National Statistics will be released on January 17. Inflation is a measure of how prices have changed over time. The Consumer Prices Index (CPI) measure of inflation is currently at 2.6%. At its highest point, inflation reached 11.1% in the 12 months to October 2022, and the Bank of England has a target of 2% inflation. Inflation figures get released every month.
January 17 – new rules for broadband and mobile price rises
A ban on telecom firms from using mid-contract price rises that are linked to inflation will come into force from January 17. Ofcom introduced this ban after inflation-linked price rises were ruled to be “confusing” for households. Mobile and broadband customers must now be told in “pounds and pence” how much their contract will rise by each year.
January 29 – Winter Fuel Payment deadline
If you haven’t received your Winter Fuel Payment, you can contact the Winter Fuel Payment Centre from January 29. The Winter Fuel Payment used to be available to everyone over state pension age, but the rules changed this year so that you also now need to be in receipt of a means-tested benefit, such as Pension Credit.
January 31 – self-assessment tax deadline
If you have to submit a self-assessment tax return, the deadline for filing this online is January 31. This applies for the 2023/24 tax year. If you miss this deadline, you face a fine of at least £100 – even if you have no tax to pay. You also need to pay any tax you owe for the previous tax year.
February 1 – alcohol freeze duty ends
Alcohol duty rates that apply to all non-draught products – including wine, spirits and bottled beer or cider – will rise by 2.7% from February 1. However, duty on alcohol from draught – so what is served in pubs, bars and restaurants – will be reduced by 1.7%.
February 6 – first Bank of England meeting of the year
The first Bank of England meeting where it will decide what happens next to interest rates will take place on February 6. The base rate – which influences how much you’re charged to borrow money and how much interest you make from your savings – is currently at 4.75%. The Bank of England meets every six weeks to set the base rate.
March 2 – train fares go up
Train fares in England will increase by 4.6% on March 2, while most railcards will rise by £5. The increase will apply to regulated rail fares, such as season, anytime day, off-peak and super off-peak tickets. Unregulated fares – which include advance, anytime, off-peak day and first class fares – are set by train companies.
March 31 – stamp duty holiday ends
The stamp duty holiday is due to end on March 31. In England and Northern Ireland, you have to pay stamp duty if your property is your only residence and is worth over £250,000. This higher rate was introduced in September 2022 but will go back down to its previous level of £125,000. If you’re a first-time buyer, you currently only start to pay stamp duty if the property you’re buying is worth over £425,000 – but this will go back down to £300,000.
March 31 – Household Support Fund ends
The Household Support Fund will come to an end on March 31. The Household Support Fund is a scheme that allows local councils to award specific help to residents who are behind on bills, or on low incomes. The support is normally given in the form of cash grants that don’t need to be paid back, or energy and supermarket vouchers.
April 1 – minimum wage goes up
Minimum wage will rise by 6.7% from April 1. For someone aged 21 and over, minimum wage will rise from £11.44 an hour to £12.21 an hour, while those aged 18 to 20 will see their rate rise from £8.60 an hour to £10 an hour. If you’re under 18 or you’re an apprentice, minimum wage is rising from £6.40 an hour to £7.55 an hour.
April 1 – council tax rises
Council tax bills will rise again on April 1. Local authorities in England are allowed to increase bills by up to 5% – if they want to introduce larger rises, they have to hold a referendum. According to Government figures, the average band D council tax set by local authorities in England for 2024/25 was £2,171.
April 1 – TV licence fee rises
The TV licence fee will rise from £169.50 to £174.50 a year from April 1. The price of a black and white TV licence will also rise from £57 to £58.50 a year, an increase of £1.50. The TV licence fee had been frozen for two years in 2022 and in 2023 under the former Tory government – however, this freeze was scrapped in April this year.
April 1 – water bills rise
Water bills will rise from April 1 – with the average person set to pay £86 next year alone. It was recently confirmed that Ofwat will allow companies to raise average bills by £157 in total over the next five years, to £597 by 2030, to help finance a £104billion upgrade for the sector.
April 1 – car tax shake-up
A massive shake-up to car tax rules that affects anyone purchasing a new car will kick in from April 1. If you purchase a new vehicle that emits between 1-50 g/km of CO2, including hybrid vehicles, the amount you’ll pay in car tax will rise from £10 to £110. The rates for new cars emitting 51-75g/km of CO2 will increase from £30 to £130, while all other rates for cars emitting 76g/km of CO2 and above will double from their current level.
For a car that emits over 255g/km of CO2, the first-year rate will double from £2,745 to £5,490. You should also be aware that from April 1, drivers of cars in the lowest emissions category that are currently exempt from paying car tax will be charged £20.
April 5 – end of the tax year
The end of the current tax year always falls on April 5. This is the last day before all your tax allowances reset, so make sure you make the most of these before the new tax year starts on April 6. For example, there is an ISA allowance of £20,000 every tax year, as well as a cap of £60,000 for how much you can pay into your pension before you start to pay tax.
April 5 – National Insurance pension deadline
The deadline for you to purchase missing National Insurance years dating back to 2006 and top up your state pension is April 5 – after this point, you’ll only be able to go back six tax years. Most people need 35 qualifying years on their National Insurance record to claim the full new state pension, and ten years to receive anything at all. This means if you have gaps in your record, you may not receive a full new state pension later in life.
April 6 – employer National Insurance rises
The rate of National Insurance paid by firms will rise from 13.8% to 15% from April 6, while the earnings threshold for when employers start paying National Insurance will also be lowered from £9,100 per year to £5,000. While this won’t have a direct impact on your take-home pay, businesses have already warned they’ll have to raise prices to mitigate costs.
April 6 – Help to Save extended
The eligibility criteria for opening a Help to Save account is being expanded from April 6. Help to Save is a savings account run by the Government for some people claiming Universal Credit or Tax Credits. It lasts for four years and allows you to put away between £1 and £50 each month. For every £1 you save, you get 50p back – so it means you could potentially get a bonus worth up to £1,200 once the four years is up.
Universal Credit claimants can only open a Help to Save account if you, or combined with a partner, had a take-home pay of £722.45 or more in your last monthly assessment period. But from April 6, anyone who claims Universal Credit and earns at least £1 from work will be able to open a Help to Save account.
April 6 – state pension and benefits rise
Millions of people will see their benefits rise by 1.7% from April 6, while the state pension will increase by 4.1%. The majority of benefits, including Universal Credit. Meanwhile, state pensions increase in line with the triple lock formula. The triple lock guarantees the state pension rises each April by the highest out of inflation (using the previous September inflation figure), wages (average growth between May and July) or 2.5% – whichever is highest.
June 30 – mortgage guarantee scheme ends
The mortgage guarantee scheme, which allows first-time buyers to take out a mortgage with a 5% deposit, will come to an end on June 30. The scheme was launched in April 2021 to increase the number of 5% deposit deals on the market, following the coronavirus pandemic.
August 1 – student loan fees rise
The maximum that can be charged for university tuition fees in England will rise from £9,250 to £9,535 a year on August 1. The current £9,250 cap on tuition fees in England has been frozen since the 2017/18 academic year. Student living loans, also known as maintenance loans, will also rise by 3.1% If you’re studying away from home, outside of London, it’ll rise from £10,227 to £10,544 a year, while those in the capital will see maintenance loans go up from £13,348 to £13,762 a year.
September 1 – final rollout of free childcare
The rollout of free childcare hours to all children from the age of nine months old will be complete from September 1. Previously, all parents of children aged three and four in England get 15 hours of free childcare a week, or 30 hours a week, if their parents work and meet certain conditions.
This has been slowly expanded to include parents of children aged two, and then to parents of children aged nine months old. These children now get 15 hours of free childcare a week if their parents qualify, but this will be expanded to 30 hours from September 2025.
October 5 – deadline to register for self-assessment
If you need to register for self-assessment tax for the first time, the deadline is always October 5 every year. You may end up being fined by HMRC if registering late means you miss the tax return and tax payment deadlines. If you do need to register, you can do so online through GOV.UK or by calling the self-assessment helpline on 0300 200 3310.
October 31 – file paper self-assessment tax return
If you plan on filing a paper self-assessment tax return, the deadline is October 31. If you don’t send your paper forms in time, you can instead fill out your tax return online – the deadline for this is January 31 the following year. Again, you face fines if you miss the deadline. Don’t submit both a paper and online tax return.
