How to tackle rising household bills in 2025

Household bills are set to rise this year as the cost of living continues to climb.

But there are practical ways to tackle these growing expenses and save money.

Let’s dive into the details of the bills you can expect to see increase, along with some handy tips to keep your finances in check.

Which bills are going up?

Here’s a quick rundown of the household bills that will likely see a rise in 2025:

• council tax bills
• energy bills
• food costs
• mobile and broadband bills
• mortgages and borrowing
• rail fares
• stamp duty
• TV licence
• water bills

Council tax

Council tax could increase by up to 5% in April, adding £109 to the average band D household’s bill.

Each council sets their own rate, while your home’s band (based on its value) will determine exactly what you pay.

If you’re struggling to pay your council tax:

• Check if you qualify for a discount, especially if you receive benefits or have a low income
• Speak to your council as soon as possible – council tax is a priority bill and can have serious consequences if you don’t pay.

Energy bills

Energy bills have just gone up – and they’re expected to rise again by 3% in April as a second increase to the price cap has been predicted.

The price cap affects those on default and variable tariffs.

Here are some ways to manage these costs:

• Contact your energy supplier – lots of them have grants or schemes to help you.
• Sign up for the priority services register for extra support if you're vulnerable.
• Switch tariffs or suppliers to find a better deal.

Food costs

Experts predict food prices will rise by nearly 5% in 2025.

This increase is mainly due to higher costs being passed on by manufacturers and supermarkets.

But don’t worry; there are ways to keep your grocery bills under control:

• Look for discount stickers on products.
• Try wonky fruit and veg schemes for cheaper options.
• Choose own-brand products instead of premium lines.
• Make a shopping list to avoid impulse buys.
• Use comparison sites like Trolley.co.uk to find the best deals.

Mobile and broadband bills

Mobile and broadband prices usually go up every April in line with inflation. But this year, there’s a change.

From 17 January, contracts will need to clearly tell you how much your bill will go up by and when. For example:

• monthly subscription price, £30 until 31 March 2025
• increasing to £31.50 on 1 April 2025
• increasing to £33 on 1 April 2026

Here are some tips:

• Switch providers when your contract ends to take advantage of a bargain – MoneySuperMarket or Uswitch are good places to start.
• Haggle with your current provider for a better deal.

Mortgages and borrowing

The Bank of England may raise interest rates, impacting your mortgage or borrowing costs.

The base rate is currently being held at 4.75% with the next decision expected on 6 February.

When interest rates rise, it costs more to borrow money. This can include mortgages but also credit cards or loans.

To prepare:

• If your fixed mortgage deal is ending soon, start researching new options early.
• Look for better savings rates if you’re putting money aside.

Rail fares

Train fares will see an increase of up to 4.6% from March.

Here’s how to save on travel:

• Splitting your journey across multiple tickets can save you money on long journeys.
• Buy a season ticket if you travel frequently.
• Book your tickets well in advance to avoid higher prices.
• See if you’re eligible for a railcard discount.

Stamp duty

You’ll face higher stamp duty charges if you’re buying a home this year.

At the moment, first time buyers are exempt from paying it on homes valued at up to £425,000, but this will drop to £300,000 from April.

Everyone else will also see their threshold drop from £250,000 to £125,000.

Avoid the higher stamp duty costs by completing your purchase before 1 April.

TV licence

From April 2025, the TV licence fee will increase by £5 to £174.50.

If you don’t watch live TV or the BBC, you might not need one:

• Streaming services are a great alternative instead of traditional TV.
• Check eligibility for a free licence if you’re over 75 and you or a partner gets pension credit.
• You might qualify for a discounted licence if you’re registered blind or live in residential care.

Water bills

Water bills are projected to soar by more than £150 over the next few years. Regulator Ofwat has warned that we can expect a 20% increase in the next year and a 36% increase by 2030.

The average water bill is currently about £448 a year and goes up in April.

Each water company covers a different area and is responsible for setting its own prices, including any increases.

To save:

• Use the Consumer Council for Water’s free calculator to see if you’d be better off with a water meter.
• Take advantage of any water-saving devices from your supplier – check out savewatersavemoney.co.uk to see what’s on offer.

Boost your income

Now that we’ve covered the bills, let’s look at some general tips to help you boost your income:

• Banks frequently offer a hefty sum for switching accounts.
• Keep an eye on your Direct Debits and cancel any you don’t need.
• Sell unused items online to make some extra cash.
• Haggle on your bills – don’t be afraid to negotiate with service providers.
• Use cashback sites for your shopping.
• Participate in surveys for a little extra income.
• Regularly compare prices to save on your internet bill.
• Save your spare change by using banking apps that round up your transactions.

We’ve also got lots more money-saving tips on our website too.

Don’t miss out

If you’re struggling financially because of the cost of living crisis, we can check you’re claiming all the support you’re entitled to. 

Use our benefits calculator or get in touch to find out more. We’re always happy to help.