15 money changes hitting millions of bank accounts in April 2025

Council tax, car tax, broadband, mobile, water and stamp duty are all about to jump in price on or around the first of the month.

15 money changes are coming in April 2025 - affecting MILLIONS of UK households. Council tax, car tax, broadband, mobile, water and stamp duty are all about to jump in price on or around the first of the month.

Households are being urged to check for savings by shopping around and investigating if they are entitled to any discounts. The National Minimum and National Living wage are going up. From April 1, those on the National Living Wage will get a payday boost worth £1,400 a year.

For an eligible full-time worker that’s around £25 a week or £100 a month. If you’re a full-time worker on the National Minimum Wage, your pay could be boosted by £2,500 a year.

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You’ll get it whether you’re in a full-time, part-time, or temporary role and the amount you’ll receive will depend on your age or if you’re an apprentice. This change is another step towards creating a genuine living wage that supports millions of families across the country.

April 1 - National Living Wage increase

From April 1, the National Living Wage will increase from £11.44 to £12.21 an hour, the Chancellor announced last year. The National Minimum Wage for 18 to 20-year-olds will also rise from £8.60 to £10.00 an hour - the largest increase in the rate on record.

The government will continue to engage closely with businesses, unions and wider society to ensure that all employers are aware of the new rates and take the steps needed to prepare for payroll changes on 1 April.

April 1 - Energy price cap change

Energy prices will rise by 6.4% in April under energy watchdog Ofgem's new price cap, which will see a higher-than-expected rise in bills. Ofgem said the rise will equate to £111 for an average household per year, or around £9.25 a month, over the three-month period of the price cap.

The increase means the total average bill will rise from £1,738 to £1,849 from April 1 for a typical household in England, Scotland and Wales.

April 1 - Stamp duty increase

Home buyers will pay more stamp duty from April 1 when thresholds are reduced. From 1 April, the threshold at which first-time buyers start paying the tax will return to previous levels, dropping to £300,000 - meaning many more will be liable. The rate is then 5% on the portion of the house price from £300,001 to £500,000. There's no discount offered on the portion over £500,000.

April 1 - Council tax bill increases

Council tax bills across the country will go up by an average of 5% in April, for the third year in a row. Council Tax bills will rise for millions of households from April 1, with most local authorities in England preparing increases of 5% – adding around £109 to a typical band D bill. In Scotland, most councils are planning rises of at least 8%, while in Wales bills will go up by between 4.5% and 9.5%.

April 1 - TV licence bill increases

The annual fee for a TV licence will rise in line with inflation each year until 2027. The annual cost of a standard colour TV licence will rise to £174.50 from 1 April 2025 – an increase of £5 on the current price of £169.50 a year – the Government has announced.

The cost of a black-and-white TV licence – still used by around 3,600 UK households, according to TV Licensing figures from March 2024 – will also rise, by £1.50 from £57 to £58.50 a year from 1 April.

Those who are blind (severely sight impaired) are currently eligible for a 50% discount on a TV licence. At present, they pay £84.75. However, the Government says any change to this price won't be confirmed until January.

April 1 - Car tax increases

Vehicle Excise Duty (VED) prices will be hiked for cars, vans and motorcycles, excluding first year rates for cars, in line with RPI inflation. British motorists are being warned of upcoming changes to car tax launching soon that will see almost all road users slapped with new costs.

From April 1, 2025, drivers will be hit with new car tax changes, many of which were announced by Chancellor Rachel Reeves in October's Autumn Statement.

Vehicle Excise Duty (VED) prices will be hiked for cars, vans and motorcycles, excluding first year rates for cars, in line with RPI inflation.

April 1 - Water bill increases

Households in England and Wales will see an average £123 or 26% increase to their yearly water bill from April 1. The rise, confirmed by industry body Water UK, will take the average water and wastewater bill from £480 to £603 for the next year alone.

This equates to an increase of around £10 a month, from £40 to £50.

April 1 - Mobile and broadband bill increases

Most broadband deals and mobile phone contracts will rise in April. Most major phone, broadband and pay TV companies hike their prices every March or April, meaning the hikes typically fall in the middle of people’s contracts, and these increases are usually linked to inflation figures. But not all mobile networks have mid-contract price rises as some offer fixed price tariffs, while others promise to freeze rates for a set period.

April 5 - NIC top up deadline

People can currently make voluntary extra contributions to plug National Insurance gaps back to 2006. But, after April's deadline, this will be limited to the previous six years only.

Some people may have spaces in their National Insurance record if, for example, they have lived abroad or taken time off for caring responsibilities. In general, people need 35 years of qualifying contributions to get the full state pension.

Top-ups have been permitted, as part of the transition to the flat-rate state pension, which was introduced in 2016.

Currently, these can go back for nearly 20 years, but are due to return to the normal six years after April.

April 5 - End of tax year

Until 1752 the tax year in Great Britain started on 25th March, old New Year’s Day. In order to ensure no loss of tax revenue, the Treasury decided that the taxation year which started on 25th March 1752 would be of the usual length (365 days) and therefore it would end on 4th April, the following tax year beginning on 5th April.

The next difficulty was that 1800 was not a leap year in the new Gregorian calendar but would have been in the old Julian system. Therefore the Treasury moved the year start again from 5th to 6th of April, and this date has remained unchanged ever since.

April 5 - Tax Credits are abolished

Tax credits are being replaced by universal credit. Most existing tax credit claimants have now moved to universal credit or pension credit. In line with previously announced plans, there will be no more tax credit awards after 5 April 2025. If you are still receiving tax credits, you may need to take some action.

Working tax credit and child tax credit, often referred to as tax credits, were introduced in 2003. After 22 years, the tax credit system is closing and there will be no tax credit awards after 5 April 2025. This is because tax credits have been replaced by universal credit for most people under state pension age. Most tax credit claimants have already been invited to claim either universal credit or pension credit, but a small number of people will not be entitled to either benefit which means their tax credits will end on 5 April 2025.

April 6 - Employer NICs rise

The government announced three changes to employer NICs in the 2024 Autumn Budget to take effect from 6 April 2025. An increase in the rate of employer NICs – ‘secondary Class 1 NICs’ – from 13.8% to 15%.

A cut in the secondary threshold – which is the point at which employers become liable to pay NICs on employees’ earnings – from £9,100 a year to £5,000 a year.

An increase in the Employment Allowance. This currently allows businesses with employer NICs bills of £100,000 or less in the previous tax year to deduct £5,000 from their employer NICs bill. The Allowance will be increased from £5,000 to £10,500, and the £100,000 threshold for eligibility will be removed, to expand it to all eligible employers with employer NICs bills.

April 7 - State Pension increase

The Government’s triple lock pension means that the basic and full rate of the new state pension rises each year by whichever is highest out of 2.5%, inflation, or earnings.

Welfare payments typically increase each year by the rate of inflation from the previous September. The Consumer Prices Index (CPI) rate of inflation in September 2024 was announced to be 1.7%, which is therefore the rate that inflation-linked benefits and tax credits will rise by this year.

The State Pension will see a 4.1% increase under the triple lock promise. This guarantee ensures the state pension rises each April by the highest out of inflation (using the previous September inflation figure), wages (average growth between May and July) or 2.5% - whichever is highest.

April 7 - Benefits rise

Most benefit claimants will see their payments rise by 1.7% - in line with the inflation level from September 2024. Alongside the State Pension, several other benefits including Universal Credit, Child Benefits and Disability Living Allowance will also see an increase.

April 7 - Help to Save expans

The Help to Save scheme aims to boost the financial resilience of low-income households by offering a 50% government bonus on savings of up to £50 a month over four years.

By extending the eligibility to include all Universal Credit claimants in work, not just those earning above a certain threshold, the scheme will be accessible to more households in need.

This measure aligns with the government’s aim to enhance financial inclusion of low-income households and provide targeted support to help them withstand financial shocks.