UK households face multiple financial changes starting April 1

Starting on April 1, 2025, several significant changes will occur that affect household budgets in the UK. A 6.7% increase in the National Living Wage will take effect, raising the hourly rate to £12.21 for workers over 21. For younger workers aged 18 to 20, the National Minimum Wage will go up by £1.40 to £10.00 per hour. Apprentices will see their minimum pay rise from £6.40 to £7.55 per hour. Water bills will also rise by an average of £123, or 26%, starting April 1. This increase is part of a plan to upgrade the water sector. Some regions will experience even higher rises, with Southern Water raising bills by 47%. Energy bills are set to increase by £111 on average as the price cap rises. Ofgem's new cap will be £1,849, affecting about 22 million homes. Households may want to shop for better deals to avoid these higher costs. Council Tax will see a 5% increase for the third year in a row. The average bill for a band D property will be £2,280, up £109 from last year. Most councils are raising rates to the maximum allowed. Additionally, the cost of a TV licence will increase by £5, and stamp duty rates will change, making home buying more expensive. For first-time buyers, the exemption limit drops from £425,000 to £300,000. Inflation-linked benefits will increase by 1.7% from April 6, offering additional support to low-income households. This includes benefits like Universal Credit and Personal Independence Payment. Finally, from April 7, stamp prices will rise again, with first-class stamps costing £1.70 and second-class stamps costing 87p. Households should prepare for these adjustments to manage their finances effectively as April approaches.