The cost of living crisis is set to continue until 2025, and many UK households are facing increased financial pressure as major bills rise. From energy prices to council tax, the outlook for next year suggests further pressure on budgets.
Energy bills to rise by £94 annually
Millions of UK households will see their energy bills increase starting January 2025, following the latest price cap announcement from energy regulator Ofgem.
- The energy price cap will increase from £1,834 to £1,928 per year for the average household.
- The rise is largely driven by global market instability and rising wholesale energy prices, which continue to be affected by the conflict in Ukraine.
However, it is important to note that the price cap does not dictate a fixed bill amount but sets a limit on the price per unit of gas and electricity. Households using more energy will face higher bills accordingly.
BBC TV Licence Fee Set to Rise to £174.50 in 2025
The BBC TV Licence fee will rise by £5 in April 2025, bringing the annual cost to £174.50.
The government has justified the increase as a means to support the BBC’s public service mission, including its educational programming and trusted news coverage.
Culture Secretary Lisa Nandy stated:
“We are providing the BBC with funding certainty while supporting thousands more households facing financial hardship to spread the cost of a TV licence.”
The current increase follows a previous £10.50 rise earlier this year, after a two-year freeze at £159.
Bus Fare Cap to Rise to £3 in December 2024
The £2 bus fare cap in England will end in December 2024, with the new cap rising to £3.
Originally introduced to lower transport costs and reduce road congestion, the fare cap policy provided significant savings for commuters. However, the upcoming change means that public transport users will see their travel expenses increase, particularly those who rely on buses for daily commutes.
Council Tax Set to Rise by Up to 5% in April 2025
Households in England and Wales are bracing for a Council Tax increase in April 2025. Local authorities are expected to raise rates by up to 5%, the maximum allowed without a public referendum.
- The average Band D Council Tax bill in England will rise from £2,171 to approximately £2,280—an increase of £109.
- In Scotland, there will be no set limit on council tax increases, meaning residents could face even higher bills depending on local government decisions.
The tax hike is aimed at addressing a £2.4 billion funding shortfall faced by councils as they manage rising costs for public services.
Water bills forecast to increase by 21% over five years
Water bills in England and Wales are set to rise significantly over the next five years. Starting from April 2025, households can expect an average annual increase of £19 in their water bills.
- Regulator Ofwat has predicted a cumulative rise of 21% spread across the five years, reflecting investment needs and infrastructure improvements.
- Final decisions on potential increases are expected before the end of this year.
Upcoming Household Bill Increases Highlight the Ongoing Cost of Living Crisis in 2025
| Bill | Current Cost | New Cost (2025) | Increase | Effective Date |
|---|---|---|---|---|
| Energy Bills | £1,834 (avg) | £1,928 (avg) | +£94 annually | January 2025 |
| TV Licence | £169.50 | £174.50 | +£5 annually | April 2025 |
| Bus Fares (Cap) | £2 per journey | £3 per journey | +£1 per journey | December 2024 |
| Council Tax (England) | £2,171 (Band D avg) | £2,280 (est.) | +£109 annually | April 2025 |
| Water Bills | £456 (approx.) | +21% over 5 years | +£19 annually (avg) | April 2025 |
The increase in household bills in 2025 highlights ongoing challenges for residents already navigating high inflation and stagnant wages.
Although, with energy prices, council tax, and public services costs continuing to rise, managing household budgets may become increasingly difficult for many families.
Since these changes are coming into force, individuals are encouraged to monitor their use, seek help from public authorities where available and investigate opportunities to reduce costs where possible.
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Why are you using the fake Ukraine war as a reason to rip us of you still pay the same price you pay for back in 2019 so why are you really ripped off for so we will own nothing that’s the real reason your ripping us of