Many everyday costs are set to increase in April, affecting items from fuel and postage to council tax and utility charges.
These adjustments will squeeze household budgets for many people, even as some groups receive financial boosts that partially offset higher bills.
- Households face multiple rising costs that will tighten budgets.
- Some bills have been frozen, but it won't offset the increases by much.
- Read the full post to find out how to best navigate the changes.
Bills are going up... again.
Broadband and mobile bills will probably increase.
Broadband and mobile operators have announced increases affecting many customers from April.
The scale of rises depends on contract terms and whether a customer is new or existing: those on fixed-term deals may be protected until the contract ends, while out-of-contract customers often face immediate uplifts.
People not bound by a contract can usually switch providers without penalty; others may reduce costs by negotiating a lower rate, asking for a loyalty discount, or enquiring about a social tariff if eligible.
Water charges are going up.
Water charges will rise on average in April, though the percentage differs across regions and companies.
Although customers cannot transfer to a different water company, installing a water meter or reducing consumption where a meter is already fitted can lower bills for many households.
The TV licence fee is going up.
The annual TV licence fee increases from April, affecting anyone who watches live television or uses BBC iPlayer. Exemptions and reduced rates still apply in specific circumstances, so some households may not be liable for the full amount.
Those who only stream on non-live services should verify whether they require a licence to avoid overpaying.
Relief for remote workers is ending.
Statutory tax relief that was previously available to employees working from home will end in April. Employers may continue to offer reimbursement, but they have no obligation to do so.
Individuals who previously claimed the flat-rate relief for household costs such as energy may not be able claim this if their employer ends support.
We're going to pay more for stamps and postage.
Postal rates rise from early April, increasing the cost of first-class and second-class stamps.
Consumers can reduce postage spending by buying stamps in advance, choosing second-class for non-urgent mail, or purchasing from Post Offices and supermarkets where prices are typically lower than some online retailers.
Maybe it's time for those e-cards to make a return...?
Air passenger taxes are going sky high.
Air Passenger Duty (APD) increases will add to the cost of many flights, with rises scaled by distance bands. Airlines may pass these increases to customers through higher ticket prices.
Also, current geopolitical events is having a massive impact on fuel prices, and this volatility is also pushing up fares. Flying has gotten much more expensive, and the new APD certainly isn't helping.
Passports will be even more expensive.
If you're willing to accept the huge price that comes with flying these days, but don't have a passport, unfortunately the price for that has gone up too...
Passport application fees are increading in April for both adults and children but they do vary slightly by application method (online versus postal).
New inheritance tax rules for farms and businesses
Changes to reliefs for agricultural property and business-related assets will alter inheritance tax calculations for some estates.
From April, full business related relief on qualifying agricultural property will apply only up to a specified threshold, potentially increasing tax bills for families whose holdings exceed that limit.
Those with farms or qualifying businesses should reassess estate plans and relief eligibility in light of the new threshold.
Some prices have been frozen... for now.
The earnings limits remain the same.
The thresholds that determine when income tax becomes payable will stay at their current levels this year. But it's likely we're all paying more due to 'tax creep'.
Because these limits have not moved for several years, more people have been pushed into higher tax bands as wages have rised to combat inflation. This is normally referred to as 'fiscal drag'.
Workers who see pay increases can therefore face a larger tax bill even if their income hasn't increased in real terms (when you take inflation into consideration).
So yes, it's frozen. But we're all probably paying more.
All fares for trains will remain at current rates
We've already covered that flying costs a fortune and passports prices have gone up, but worry not because the UK offers a very affordable way to travel domestically - trains!
I'm joking of course, train tickets are expensive, too. But there is a little bit of good news. Regulated rail fares, including season tickets and many commuter fares, will not rise in April.
Passengers on regulated routes will therefore avoid an annual price uplift that we usually see at this time of year.
Fuel duty cut and petrol price movements
The temporary 5p per litre reduction in fuel duty introduced in 2022 remains in place until late summer, extending the relief for drivers.
Despite this, pump prices for petrol and diesel have climbed recently because wholesale costs rose after geopolitical tensions affected global markets.
Tax increases you should expect.
Council tax is likely to increase.
Many households will see an upward adjustment in their local authority tax from April. Councils in England may increase charges up to the permitted cap of 4.99% and a number are applying that full allowance; some areas have chosen larger uplifts.
Wales is implementing an average rise close to 4.9%, while several Scottish local authorities are applying increases above 6%, with some individual council areas imposing double‑digit percentage changes.
Vehicle tax has gone up, and now includes EV's.
Vehicle excise duty for most petrol, diesel and hybrid cars registered after 1 April 2017 will increase to a flat annual rate of £200 from April. Newly registered electric cars that are less than a year old will also be subject to this new charge.
The additional supplement that applies to high‑value vehicles will see the threshold for the expensive‑car surcharge raised; this affects those buying luxury electric cars.
Dividend tax is going up.
Dividend tax rates for individuals receiving share income will also increase in April. Basic‑rate recipients face a rise to 10.75% (from 8.75%), while higher‑rate recipients will see the rate rise to 35.75% (from 33.75%).
The increase applies to dividend income that exceeds the annual dividend allowance of £500.
It's best to mitigate dividend tax exposure if you can by using tax‑efficient wrappers such as ISAs, where income and gains are sheltered from tax.
Financial advisers can help assess whether holding investments inside tax‑advantaged accounts or restructuring withdrawals could reduce an individual’s tax bill. We are not financial advisors.