WHILE the National Living Wage has increased for workers in Scotland, so have household bills.
As of April 1, the National Living Wage went up from £11.44 an hour to £12.21 – a 6.7% increase.
The UK Government has claimed the increase is worth £1400 a year for an eligible full-time worker.
Yet while wages are going up by an average of 6.7%, many household bills are rising at a higher rate. For example, the average council tax bill increase is 9.5%, while the average water bill is set to rise by 9.9%.
Here's how rising household bills are set to impact Scots.
Energy bills
As of April 1, the average annual energy bill will rise to £1849, as industry regulator Ofgem increases the price cap for the third time in a row.
The new figure represents a 6.4% a year – or £9.25 per month – increase in the typical sum most households are set to pay for gas and electricity when using direct debit.
The unit price of gas is increasing from 6.34p per kilowatt-hour (kWh) to 6.99p per kWh, and electricity is going up from 24.86p/kWh to 27.03p/kWh.
The increase means households will be paying around £600 a year more for their gas and electricity than before Russia’s invasion of Ukraine three years ago.
The only people who will not be impacted by the price cap increase is those on fixed-rate deals, who will see no change until their current term expires.
Council tax
A Scotland-wide council tax freeze ended on April 1, meaning that local authorities across the country have announced some of the biggest rate hikes in decades.
The inflation-busting increases will see bills for some go up by as much as 15.6% if you’re in Falkirk, while 12 other councils have announced rises of 10% or more.
The average council tax increase in Scotland is 9.5%.
Here’s a breakdown of council tax increases in each local authority.
Rail fares
Transport Scotland has announced that fares will rise across the ScotRail network by 3.8%.
This means an anytime return ticket between Glasgow and Edinburgh will rise by £1.20 –from £31.40 to £32.60 – while the same ticket between Glasgow and Aberdeen has risen to £96.90.
This increase follows an 8.7% hike from the previous year.
The current 20% discount on season tickets will continue until September 2025.
Water bills
Scottish Water announced in January that water bills are set to rise by 9.9% from April 1.
This means that the average monthly household bills for water and wastewater services will increase by £3.68 per month or £44 per year.
Broadband, mobile phone
While Ofcom’s new rules banning inflation-linked contracts came into effect in January, many consumers will be on older contracts that will still see a price rise linked to inflation.
Each provider has a different price increase, but on average, prices will go up by 6.4% for broadband and mobile phone contracts.
For broadband, comparison service Uswitch has said that April’s rises are expected to add an average of £21.99 annually for those on inflation-linked contracts and up to £42 a year for those on newer “pounds and pence” plans – where providers disclose any mid-contract price rises in pounds and pence rather than a percentage – that are subject to fixed increases.
Meanwhile, mobile contracts face similar increases, with an average annual increase of £15.90 for inflation-linked contracts and up to £48 for the newer pounds and pence contracts.
If you started a new contract recently, you might be impacted by a pounds and pence price hike. Here are the dates providers started introducing them:
- BT/EE/Plusnet: Contract started on or after 10 April 2024
- Vodafone: Contract started on or after 2 July 2024
- TalkTalk: Contract started on or after 12 August 2024
- Three Broadband: Contract started on or after 1 September 2024
- Virgin Media: Contract started on or after 9 January 2025
TV licence
The cost of a TV licence is going up by £5 to £174.50. The rise comes after a £10.50 rise brought the charge to £169.50 in April last year.
The rise works out at an extra 1p a day and is the second time the licence fee has increased since April 1, 2021.
You can get a free TV licence if you’re 75 or over and you get pension credit, or you live with a partner who does. Those in residential care or sheltered accommodation can get a licence for £7.50, while those registered blind or living with someone who is can get a 50% discount.
Car tax
The standard rate of tax for cars registered after April 2017 will rise to £195 from the start of April, an increase of £5 (or 2.6%).
Hybrid cars get a small discount (£10) but if a vehicle had a list price of more than £40,000 when it was first sold then it may be subject to a “luxury car tax” fee, which is an extra £410 annually.
If your car was first used before 2017 you may pay less, with the exact amount depending on the year a car was registered and the type of fuel it consumes.
Owners of electric vehicles (EVs) will be subject to car tax for the first time. Any EVs registered since April 2025 will be subject to the lowest rate of tax of £10 in the first year, before moving to the standard rate of £195.
