All the changes coming in April that will affect your money | Money News

A raft of changes affecting the money in your pocket are coming into force in April, with many starting tomorrow.

Council tax and water are just two of the household bills which will rise, while mobile phone and broadband contracts are also going up, along with the price of a pint.

And a change to Premium Bonds means your chances of winning a prize will fall.

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It’s not bad news for everyone, though. Pensions and benefits are increasing, and your energy bill might fall.

Here we break down all the changes that are coming…

Water

Water bills will rise by an average of 5.4% or £33 a year in England and Wales. Bills in Scotland will rise by an average of 8.7%.

The biggest percentage increase will be seen by some Affinity Water customers, with bills rising by more than double the average at 13% or £31.

In cash terms, United Utilities customers will be the worst off, with annual bills rising by £57 (9%) to an average of £660.

At the other end of the scale, Thames Water customers will pay just £3 (0.4%) more.

See how much your water company is hiking bills below…

The increases will help to fund a £104bn investment programme by water companies to upgrade the country’s water infrastructure.

Eligible households will still receive support with their bills, with an extra 300,000 homes in line to get financial support this year, taking the total to around 2.5 million.

Council tax

Local authorities in England have been allowed to increase council tax by up to 4.99% each year since April 2023, having previously only been able to increase charges by a maximum of 2.99%.

Predictably, the majority of councils have announced another hike close to the 4.99% cap for their 2026/27 budgets.

Seven councils in England are allowed to raise their council tax by more than the top cap this April. They’ve been handed special permission due to financial struggles.

The permitted increases are:

• Up to 8.99% – Shropshire, Worcestershire and North Somerset
• Up to 7.49% – Warrington, Trafford and the Royal Borough of Windsor & Maidenhead
• Up to 6.74% – Bournemouth, Christchurch and Poole

The government says that, even with these hikes, bills in these areas will remain below the national average.

All 153 top-tier local authorities in England have confirmed the amount by which they are raising council tax – you can check yours in our table below…

In Wales, local councils can set their own rates based on their budget needs. Because of this, the average rise last year sat at 7.2% across all Welsh councils. Councils are proposing hikes of between 3% and 6.25% for 2026-27.

In Scotland, councils can set their own rates without a government-imposed cap.

At least two councils, East Dunbartonshire and Aberdeenshire, have confirmed 10% increases.

Other approved hikes range between 4% and 9.8%.

In Northern Ireland, you pay “District Rates” based on your home’s value, with new bills issued every April. For the 2026-27 period, most households face average increases of 1.96% to 4.5%.

Are you eligible for a council tax discount?

You may qualify for extra support or a reduction in your council tax bill, for example, if you’re on a low income, a student, living alone or are disabled.

Another option is to have your council tax bill spread over 12 months instead of the usual 10 – this won’t save you money but could help you to budget, if your council offers this option.

You could also get your home’s council tax band reviewed, which may entitle you to a refund if you’re in the wrong band. However, you should be aware that the review could lead to your property being put into a higher band.

Licence fee

The TV licence fee will rise by £5.50 to £180 a year.

By law, UK households have to pay the fee if:

• They watch or record programmes as they’re being shown on any TV channel
• Watch or stream shows live on any online TV service, such as All4 or YouTube
• Download or watch any BBC shows on iPlayer

The rules apply to any device, including TVs, laptops, phones and tablets.

If you’re 75 or over and you get pension credit, or you live with a partner who does, you qualify for a free TV licence.

You can apply for it here or by calling TV Licensing on 0300 790 6071.

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.

Broadband and mobile

Several broadband and mobile providers will increase monthly bills by up to £4.

Virgin Media, Sky, BT and EE are just some of the companies hiking prices.

Ernest Doku, telecoms expert at Uswitch, told Money that many broadband and mobile customers will see their prices increase by as much as £48 and £30 per year each this April.

You can see a full list of changes – plus some tips from Uswitch on how to beat your provider’s increase – below…

Mobile contracts are also going up – but not by as much…

Considering switching?

Right now, eight million broadband and 14 million mobile customers are out of contract and are free to switch providers penalty-free before these price hikes hit, Doku said.

“There are providers who currently commit to no mid-contract price rises at all. You can also switch to a provider that has committed to freezing their prices until 2027, meaning there will be no price rises this year,” he said.

“Providers like Virgin Media and EE offer early-switching credit of up to £250 and £300 respectively to reimburse exit or termination fees, so if you’re unhappy with your current provider or simply just want to avoid mid-contract price rises, you can still switch to a better deal even if you still have a few months left on your current plan.”

If you don’t want to leave your provider, you could also call them and try to haggle down your monthly cost.

Several broadband providers have social tariffs available, helping those on benefits access an internet connection at a lower monthly price.

You may be able to get cheaper prices by bundling your phone, internet and TV services – though you need to read the small print as exit fees can be significant.

Read more: How to get a better mobile deal

Car tax

The standard tax rate for all petrol, diesel or hybrid cars registered after 2017 rises to £200 from tomorrow.

Owners of electric cars that are under a year old will also have to pay a flat £200 rate.

If you pay in 12 monthly instalments, your total car tax cost will be £210.

If your vehicle had a list price of more than £40,000 when it was first sold, or £50,000 if your car is electric, then you may also have to pay the Expensive Car Supplement, also known as the luxury car tax.

This adds £425 to the vehicle’s annual car tax costs for a period of five years.

The exact fee for your annual road tax will depend on the year your car was first registered, the type of fuel it uses and its CO2 emissions.

You can check the full list here.

Stealth tax

Frozen income tax thresholds could mean that some people get pushed into higher tax brackets as their wage goes up.

Others could be pushed into paying tax on their savings by breaching the personal savings allowance, which is £1,000 tax-free interest for basic rate taxpayers.

Read more: What is freeze on income tax thresholds?

It’s not just bills… there’s bad news if you like a pint of Guinness…

The price of Guinness and Smirnoff will rise in pubs from tomorrow after drinks giant Diageo confirmed its wholesale prices are going up.

The cost of Guinness Draught will rise by 5.2%, around 4p a pint, while the list price of a standard bottle of 70cl Smirnoff will go up by 13p.

Tequila brand Casamigos, Baileys, Guinness 0.0, Guinness Microdraught and Guinness Draught in Can will not be affected.

Stamp prices

The price of a second-class stamp will go up by 4p to 91p and first-class stamps will increase by 10p to £1.80 from 7 April.

Royal Mail said the rises are due to the increase in the cost of delivery as letter volumes fall and the number of addresses increases.

Air travel

Air passenger duty (APD) will increase, which could cause the cost of your flights to rise.

APD is a tax on flights from British airports and it’s usually passed on to travellers in the form of higher fares.

Rates vary based on how long a journey is.

Travel expert Simon Calder previously said the change will mean a family of four flying premium economy to Orlando will pay more than £1,000 in tax for leaving the UK.

A family of four travelling to a European destination would pay up to £132.16 in tax.

Ryanair’s Michael O’Leary has previously warned that any further increases to the tax could cause the airline to cut UK flights.

Premium bonds

There will be fewer chances to win premium bond prizes from the April draw after savings giant NS&I announced changes to the odds.

The prize fund rate will be reduced from 3.6% to 3.3% and the odds will be lengthened from 22,000-1 to 23,000-1, NS&I said.

Having recently passed £40bn in prizes drawn, the April draw is expected to have close to six million tax-free prizes worth around £375, according to the NS&Is retail director, Andrew Westhead.

NS&I, which is backed by the Treasury, has a duty to balance the interests of its savers, taxpayers and the market and it is set targets for the amount of net finance it needs to raise each year for government.

Read more: ‘Disadvantage’ for certain premium bond holders

Okay, ready for all the good news?

Millions of benefits and state pension claimants will see their payments increase this year.

Benefits linked to inflation are set to rise by 3.8%, while others will get a 2.3% boost.

Both the basic and new state pensions will rise by 4.8%.

Here’s a breakdown…

Universal Credit

This is a means-tested benefit for people who are on low incomes or unemployed, so the amount you receive is based on your household income, savings and specific circumstances.

It is paid monthly – or twice a month for some people in Scotland.

If you think you might be eligible to claim, but aren’t already doing so, there is more information here.

From April, the rates will be:

• £338.58 a month for single people under the age of 25 – up from £316.98
• £424.90 per month for single people aged 25 and over – up from £400.14
• £528.34 per month for joint claimants both aged under 25 – up from £497.50
• £666.97 per month for joint claimants both aged 25 and over – up from £628.10

The end of the two-child benefit cap in April will also mean parents with more than two children and claiming universal credit will be able to claim an extra amount for any subsequent children.

The new additional amount under the child element of universal credit will go from £339 to £351.88 for a first-born child born before 6 April 2017, and from £292.81 to £303.94 for any other children.

Attendance allowance

This is a benefit for people who are state pension age or older and need help with personal care due to a disability or health condition.

It isn’t means-tested, but the amount you receive does depend on the level of care you need.

The new rates will be:

• £114.60 per week for the higher rate – up from £110.40
• £76.70 per week for the lower rate – up from £73.90

Carer’s allowance

This is the main benefit for people who care for someone with an illness or disability for at least 35 hours a week.

The new rate will be:

• £86.45 a week – up from £83.30

Carers receiving Universal Credit will also see the “carer element” of that benefit rise from £201.68 to £209.34 a month.

Disability Living Allowance

This provides extra money for children under the age of 16 with significant care needs due to a disability.

The amount you receive is based on the level of care needed.

The new rates are:

• £114.60 a week for the highest rate – up from £110.40
• £76.70 a week for the middle rate – up from £73.90
• £30.30 a week for the lowest rate – up from £29.20

Housing benefit

Housing benefit can help you pay your rent if you’re unemployed, on a low income or claiming benefits. It’s being replaced by Universal Credit for most people of working age.

You can only make a new claim if you are of state pension age or in supported, sheltered or temporary housing.

The new rates are:

• £75.65 a week for a single person under the age of 25 or a lone parent under the age of 18 – up from £72.90
• £95.55 a week for a single person over the age of 25 or a lone parent over the age of 18 – up from £92.05
• £114.35 a week for a couple who are both under the age of 18 – up from £110.15
• £150.15 a week for a couple where one or both are over the age of 18 – up from £144.65
• £256 a week for a single person of state pension age or over – up from £244.40
• £383.35 a week for a couple of state pension age or older – up from £366

Jobseeker’s allowance

This benefit can be claimed by unemployed people actively looking for work.

There are two types of jobseeker’s allowance, contribution-based JSA and income-based JSA, but this one is being replaced by Universal Credit.

The new rates for contribution-based JSA are:

• £75.65 a week for under 25s – up from £72.90
• £95.55 a week for over 25s – up from £92.05

Pension credit

This is a means-tested benefit that gives people over state pension age on low incomes extra money.

The standard minimum amount will be:

• £238 a week for a single person – up from £227.10
• £363.25 a week for a couple – up from £346.60

The additional amount for those with severe disabilities will be:

• £86.05 a week for a single person – up from £82.90
• £86.05 a week for a couple with one person who qualifies – up from £82.90
• £172.10 a week for a couple where both qualify – up from £165.80

Personal Independence Payment (PIP)

This benefit is given to people to help with extra living costs if they have a long-term condition or disability, and experience difficulty doing certain everyday tasks or getting around because of their condition.

There are two components – daily living and mobility.

The new rates for the daily living component are:

• £114.60 a week for enhanced needs – up from £110.40
• £76.70 a week for standard needs – up from £73.90

The new rates for the mobility component are:

• £80 a week for enhanced needs – up from £77.05
• £30.30 a week for standard needs – up from £29.20

State pension

State pensions will increase by 4.8% from 6 April, driven by the triple lock guarantee.

This rise is based on the average earnings growth figure for July and is higher than inflation.

To get the state pension, you need to be of pension age and have made at least 10 years of national insurance contributions. To get the full amount, you need to have made 35 years of contributions.

There are two types – the old state pension and the new state pension – you can read more about why that is and what it means below.

Here are the new rates:

• £241.30 a week for the full rate of the new state pension – up from £230.25
• £184.90 a week for the basic old state pension – up from £176.45

Read more: Why are there two state pension amounts?

What about wages?

Millions of people earning minimum wage will get a pay rise.

The living wage, for eligible workers aged 21 and over, will rise by 4.1% to £12.71 an hour.

For a full-time worker over the age of 21, that means a pay increase of £900 a year.

The national minimum wage rate for 18 to 20-year-olds will increase by 8.5% to £10.85 an hour.

For 16 to 17-year-olds, and those on apprenticeships, the increase will be 6%, to £8 an hour.

Read more: The hidden ways bosses pay less than minimum wage

Rail fares

Rail fares will not be going up thanks to a price freeze confirmed in March.

The freeze applies to all regulated fares, including seasons, peak returns for commuters and off-peak returns.

Ticket terms and conditions will change from tomorrow, though. Passengers will only be able to claim refunds for unused tickets ahead of travel.

Prescription prices

The cost of prescriptions in England won’t rise either. They will be frozen at £9.90.

Lastly – energy bills

Despite conflict in the Middle East pushing up oil prices, some households will see their energy bills fall from April thanks to a cut to the energy price cap.

The typical annual dual fuel bill will fall to £1,641, down from £1,758.

The cap is the typical sum most households pay for gas and electricity when paying by direct debit.

It sets the maximum amount suppliers can charge you for each unit of energy and the daily standing charge.

Your actual annual bill will be different depending on how much energy you use. The more gas and electricity you use, the more you pay.

Ofgem makes changes to four specific charges under the price cap – you can see these below…