Around 17 million households will see energy bills decrease by 7 per cent from April 1
Millions of households are preparing for “Anxious April” and a raft of bill increases, but one straightforward energy adjustment could still deliver savings of more than £100 annually.
Changing how you settle your energy bill is proving to be one of the simplest victories as expenses climb across council tax, water, broadband and beyond. Sarah Pennells, consumer finance specialist at Royal London, cautioned families face escalating pressure. She said: “These are very uncertain times, and many people will be worrying about the prospect of higher costs and bills.
“Even without the higher oil and gas prices caused by the Middle East conflict, many costs are due to rise next month, meaning an Anxious April for millions of households.”
The £100+ energy saving in plain sight
Around 17 million households will see energy bills decrease by 7% from April 1 under the price cap. Standard costs fall to £1,641 annually if paid by direct debit – but rise to £1,772 if you pay upon receiving the bill. That’s a £131 difference.
How to respond:
- Switch to direct debit to secure immediate savings exceeding £100
- Compare tariffs – although many affordable fixed deals have been withdrawn
- Consider tracker tariffs (often marginally cheaper but without price protection)
- Contact your supplier early if you’re struggling – they must provide support such as payment plans Bills rising almost everywhere else
While energy costs offer a temporary respite in April, nearly every other household expense is climbing sharply upwards.
Royal London has highlighted the increases and outlined strategies for households battling the cost of living crisis.
Council tax:
Bills are increasing by up to 4.99% in England – adding approximately £100–£110 to a typical Band D property, pushing average bills to £2,394.
How to fight back:
- Check for discounts (e.g. 25% off for single occupants)
- Apply for reductions if on low income or disabled
- Ask to spread payments over 12 months instead of 10
- Contact your council early if struggling – don’t miss payments or you risk the full bill being demanded
Water bills surge again
Water bills are climbing 5.4% on average – around £33 annually – with some increases reaching as high as 12%.
How to fight back:
- Consider installing a water meter – often cheaper if you have spare bedrooms
- Cut usage if already on a meter
- Apply for social tariffs – discounts can reach up to 50% or even 90% in some cases
Broadband and mobile bills jump
Millions will face increases of £3–£4 monthly – exceeding 10% in certain instances.
How to fight back:
- Switch providers if you’re out of contract
- Haggle with your current provider – many will offer discounts to keep you
- Downgrade your package if you’re paying for unused data
- Check eligibility for social tariffs costing £10–£23 a month
TV licence fee increases again
The charge has risen by 3.1% to £180 annually.
Ways to manage the cost:
- Spread the expense through monthly or fortnightly payment schemes
- Verify whether you qualify for reductions (for instance, if you’re registered blind)
- Confirm you genuinely require a licence – it’s only necessary for watching live broadcasts or using BBC iPlayer
Vehicle tax amendments – including electric car bombshell
Standard vehicle excise duty climbs to £200 – and battery-powered cars will lose their exemption.
Ways to manage the cost:
- Settle annually rather than in instalments to sidestep additional fees
- Verify your vehicle classification – older models may face different charges
- Stay aware of the £50,000 price point to dodge the £440 expensive car surcharge
Postage stamp costs increase
First-class stamps have jumped nearly 6% to £1.80, while second-class have risen 4.6% to 91p.
Ways to manage the cost:
- Purchase in bulk before the price hike
- Transition to digital communication or text messaging wherever feasible
Heating oil expenses double
For properties not connected to mains gas, heating oil has skyrocketed from £307 to £595 for 500 litres within mere weeks.
Ways to manage the cost:
- Shop around between providers before placing an order
- Schedule purchases during price drops
- Enquire about instalment plans to distribute the expense
- Verify entitlement to Government assistance through your local authority
Mortgage difficulties resurface
Interest rates are climbing steeply, with a 0.5% rise adding approximately £700 yearly to a £200,000 home loan.
Ways to manage the cost:
- Move swiftly – offers are disappearing rapidly
- Consult a mortgage adviser to identify the most suitable option
- Review your credit record to obtain more favourable rates
- Plan ahead if your fixed-rate agreement expires in 2026
The stealth tax squeeze
Frozen thresholds are pulling more people into higher tax brackets, with the number of higher-rate taxpayers forecast to surge by 38.7%.
How to fight back:
- Boost pension contributions to lower your taxable income
- Take advantage of salary sacrifice schemes where possible to reduce tax and National Insurance
Ms Pennells cautioned that many households leave it too late before seeking assistance.
“Our research showed that… many people who were struggling didn’t ask for help until they were in financial crisis,” she said.
“If you are struggling, talk to your supplier or a debt advice charity as soon as you feel like you’re falling behind… The earlier you get support the better.”
