FROM energy bills to the TV Licence, Council Tax to bus fares, Martin Lewis will be looking at everything that's going up in April 2025, with ideas to help beat the worst of them.
Energy bill increase
Energy bills will increase for millions of households across the UK from April, it has been announced.
Energy regulator Ofgem revealed their new price cap is rising by 6.4% from April.
As a result, the average dual fuel household paying by direct debit will see their annual energy bill increase from £1,738 a year to £1,849 - a rise of £111 a year, or £9.25 a month.
The cap does not set the maximum a household will pay for their energy but limits the amount providers can charge them per unit of gas or electricity, so those who use more energy will pay more.
The figure is based on Ofgem’s estimate of what an average household would use over a year.
How to save on energy bills
Martin is very clear on this - get off the Energy price Cap - or the 'pants cap', as he calls it.
He says to choose the best fixed deal, customers should use a comparison site that takes in the whole market by default rather than cutting out some suppliers who do not pay to be listed. He recommended his own Cheap Energy Club, as it compares all energy deals, rather than just the sponsored options.
“And remember that when you do a comparison, remember that the savings you’re given on the cheapest fix are compared to the current price cap," he says. "So they won’t look big, they might say £30, £40 a year. But remember it’s going up by 6% so if you do nothing your price would rise whereas if you fix your price would drop."
TV Licence price rise
The cost of a TV Licence is set to rise again next year, as the BBC Licence fee increases to £174.50 per year.
The fee will rise by £5 from April until 2027, the Government has announced.
The licence fee previously increased by £10.50 earlier this year, after being frozen at £159 for the two years prior.
How to save on your TV license
Do you need a TV license? It can be worth checking. You used to need a TV licence just to own a telly, but now you can get away without paying the annual fee if you only watch certain channels on catch-up. If you watch BBC iPlayer, you'll need a licence, but you won't for other channels' catch-up services.
You may not need a license if any of the following apply:
-
If you're moving in with someone who already has a TV licence or moving somewhere where you won't watch 'live TV' or use BBC iPlayer
-
If you're moving abroad.
-
If you're 75 or over and receive Pension Credit (or living with someone who is).
-
If you're moving into a care home.
-
If the TV licence holder has died, a refund may be due to the estate.
-
If you have two licences for the same address.
-
If you have a licence, but will not watch or record programmes as they're being shown on TV or use BBC iPlayer before your licence expires.
-
If you've changed the type of licence to a cheaper one, such as a black-and-white licence, you may be due a partial refund.
There's full details on Martin's Money Saving Expert website.
Water bill increase
The majority of households in England, Scotland and Wales will see water and sewerage charges rise from April.
In England and Wales, further hikes are planned over the next five years. However, prices vary depending on where you live:
-
In England and Wales: For 2025/26, the average forecast bill increase for water and sewerage firms is £123 (26%) – you'll see any changes in your April 2025 bill.
-
In Scotland: Water and sewerage prices depend on your council tax band and are generally paid alongside your council tax. For 2025/26, the average bill will increase by £44 a year (9.9%). You'll see any changes in your April 2025 bill. See Scottish Water's website for a full breakdown.
How to save money on your water bill
Check if you can save by switching to a water meter. A water meter means you pay for the water you use, rather than paying estimated bills based on the size of your home. It’s free to switch to one.
First check your water bill to see if you already have one. All homes in England and Wales built after 1990 will have one, and many more will have switched.
Generally, if there are fewer people living in your home than bedrooms, a water meter could save you money. You can use the Consumer Council for Water's calculator to see how much you'd pay if you had a meter installed.
Council Tax increase
Council Tax bills in England and Wales are likely to go up by an average of £100 in April, with an expected five per cent rise to cover £2.4 billion “black hole”.
The tax will increase by the maximum - or more - in almost nine out of 10 areas in England - a third year of maximum hikes after all councils confirmed their plans for April 2025 bills.
Nearly nine in 10 (88%) of 153 upper-tier authorities in England will impose a 4.99% increase this year, the most allowed without triggering a local referendum.
Under current rules, councils can increase tax rates by up to five per cent each year and require Government permission or a referendum to go beyond this figure.
In the middle of writing my list of 'must dos to beat April changes' both the huge wrath of price hikes, and all the tax year issues for tomorrow's MSE email and my show. I'm up to 17 now. Its somewhat depressing.
— Martin Lewis (@MartinSLewis) March 17, 2025
Broadband, streaming and mobile
Broadband and mobile companies must now tell customers in "pounds and pence" how much their contract will rise by each year, instead of linking it to inflation.
BT, Plusnet, EE, and Vodafone customers will see their monthly price rise by around 6%. Virgin Media customers will face a 7.5% increase in prices.
Martin Lewis has issued a warning to Sky TV customers facing a 6.2% average price rise. Unlike some other providers, Sky can put prices up during their two-year contract without the new protections.
In an investigation, his team discovered that Sky has exploited a loophole that means they do not have to tell customers about the rises they should expect before they sign up or without letting them leave penalty-free.
"Thought this kind of thing was supposed to be banned?" said the post on Money Saving Expert. "So did we. But our investigation can now reveal that Sky is exploiting a surprising gap in the new rules – leaving its TV customers in the lurch."
Car tax
From April 1, new car tax rules will be in place. Cars registered after 2017 will pay the standard road tax rate of £195, up from £190.
Those registered between 1985 and 2001 will continue to pay Vehicle Excise Duty based on the size of their engine, with those greater than 1549cc having to pay £360 to use the roads, up from £345.
Those registered between March 1 2001 and March 31 2017 are sorted into emissions-based bands and costs are up across all categories - with models emitting over 255g/km of CO2 charged up to £25 more.
Owners of electric, zero, or low emission cars will no longer be exempt from car tax from April. Those registered on or after the 1st of next month will pay the lowest first year rate of vehicle tax set at £10, but will pay the standard rate thereafter at £195. Those registered between April 1 2017 and Mach 31 2025 will pay the standard £195 rate.
How to save on car tax
Martin Lewis highlighted a trick on his Money Show Live, making us of a loophole in the car tax system which could save drivers of electric vehicles.
Even if your car tax isn’t due soon, you should re-tax your EV on March 31 to get another whole year of Vehicle Excise Duty, as it’s properly known, for £0.
“Do you have an electric vehicle? If so there’s a trick to get a year tax-free," he said.
“From the 1st of April, EV owners will start paying Vehicle Excise Duty - road tax as it used to be commonly known, it isn’t it’s Vehicle Excise Duty - which will be £100+.
“But if you re-tax now on gov.uk it’s free. So you get a year from the date that you re-tax. So, you might want to leave it 'til the last day of March and then it would be perfect but if you just want to do it, do it now and you get a year longer.
“Now the crucial thing of this is, you can re-tax at any time, even if you only did it two months ago. You can do it again now. You have to pay each time, but it’s currently free so there’s nothing to pay."
Stamp Duty
The proportion of first-time buyers in England and Northern Ireland who will need to pay stamp duty will double from April 2025, following changes to the thresholds.
Zoopla estimates the share of first-time buyers paying the tax will jump from 21% to 42%.
Meanwhile, the proportion of existing homeowners buying a new home as their main residence who will be liable to pay stamp duty will increase from 49% to 83%, according to Zoopla’s calculations.
From April, stamp duty discounts will become less generous, with the “nil rate” band for first-time buyers reducing from £425,000 to £300,000 and other home buyers seeing a reduction from £250,000 to £125,000.
Overall Zoopla estimates that the stamp duty changes could add an extra £1.1 billion annually in the tax to government coffers.
How to save on Stamp Duty
This one is tricky - but if you can exchange and complete before March 31, you can still sneak in at the lower rate. It's a slow process, but nothing focuses the mind - and that of the rest of your chain - like a deadline.
