As of April 2025, households across the UK are facing a noticeable rise in their monthly living expenses. This household cost increase 2025—which averages up to £128 per month—is driven by changes in energy prices, council tax, water bills, and broadband charges. For many families already balancing tight budgets, this added cost could push financial stress to new levels.
To ease the burden, the UK government has introduced a £90 cost of living payment and extended the Household Support Fund. If you’re unsure whether you qualify for help or how to adjust your finances, this guide offers clear insights into what’s changing, who gets support, and how to manage this cost-of-living hike effectively.
£128 Monthly Household Cost Increase in April 2025
The household cost increase 2025 is being felt by millions of residents across the country. While inflation has stabilised slightly, regulated services like water and council tax, as well as market-driven sectors like energy and telecom, have seen sharp price increases. These changes mean an estimated average rise of £128 per month in household bills.
Although it may feel overwhelming, the government has stepped in with temporary relief payments and extended funding for local council support. Knowing what’s available and how to access it is key to navigating the months ahead.
Overview Table: April 2025 Cost Increases and Support
| Category | Details |
| Average Monthly Increase | Up to £128 |
| Main Contributors | Energy bills, council tax, water charges, broadband/mobile |
| Government Support | £90 Cost of Living Payment (April 2025), Household Support Fund extended |
| Eligible Groups | Universal Credit, ESA, JSA, Pension Credit, Tax Credits recipients |
| How to Access Support | £90 paid automatically; HSF through local councils |
| Extra Help Available | Food vouchers, energy assistance, rent aid via local authorities |
| Where to Get More Info | GOV.UK – Household Support Fund |
What’s Causing the £128 Monthly Household Cost Increase in April 2025?
Several rising household expenses are contributing to the overall cost increase:
Energy Bills
The Ofgem price cap has risen again due to global fuel prices and supplier costs, adding approximately £9.25/month to typical energy bills.
Water Charges
According to Water UK, water and sewerage bills have increased by around £10.25/month, depending on where you live.
Council Tax
Many councils have raised council tax by 5%, with some (like Birmingham) authorised to go as high as 15.6%. That’s an average monthly rise of £6–£15.
Broadband and Mobile Tariffs
Major telecom providers have introduced CPI + 3.9% price hikes, resulting in an average monthly increase of £1.50 to £3 for most households.
The £90 Cost of Living Payment – Who’s Eligible?
To help offset these rising costs, the government has introduced a £90 Cost of Living Payment in April 2025.
Who Can Receive It?
You’re eligible if you receive any of the following benefits:
- Universal Credit
- Pension Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Child Tax Credit or Working Tax Credit
How Is It Paid?
- Automatically into your bank account—no need to apply
- Payment references will appear as DWP COL or HMRC COLS
Household Support Fund – Extra Help for Essentials
The Household Support Fund (HSF) has been extended with £742 million allocated for use between April 2025 and March 2026. Local councils are responsible for distributing this aid.
What Can the Fund Cover?
- Food and groceries
- Gas, electricity, and water bills
- Emergency clothing or household goods
- Rent or council tax arrears not covered by other benefits
How Is It Delivered?
Each local authority tailors its program. Support may be offered through:
- Supermarket vouchers
- One-off cash grants
- Direct payments to utility suppliers
Real-Life Example: Sarah’s Story
Sarah, a single mum from Leeds, faced a sharp increase in energy and council tax bills this April. With over £100 extra per month in costs, she felt overwhelmed. But the £90 cost of living payment gave her some breathing room. On top of that, she received a £150 voucher from her council’s Household Support Fund, helping her cover groceries and catch up on her energy bill.
Impact on Different Groups
Pensioners
Retired individuals on fixed incomes are particularly vulnerable. If you receive Pension Credit, you qualify for both the £90 payment and Winter Fuel Payment top-ups.
Low-Income Workers
If you work part-time or earn a low wage and don’t receive benefits, check with your local council—you may still qualify for discretionary support, food parcels, or vouchers.
Disabled Individuals
Those receiving PIP, DLA, or Attendance Allowance may be eligible for added support through the HSF, particularly if they need help with heating or accessibility costs.
Tips to Cut Down Your Monthly Costs
Even small changes can help you manage your rising expenses. Here are some practical ideas:
1. Home Energy Audit
Install LED bulbs, insulate windows, and use draft excluders—these steps can save £25 or more monthly.
2. Switch Broadband or Energy Providers
Use tools like Ofcom’s comparison service or energy switching websites to find lower rates.
3. Use Budgeting Apps
Apps like Emma, Money Dashboard, or even your bank’s app can help you track spending and set saving goals.
4. Council Tax Discounts
Check if you’re eligible for reductions due to single occupancy, student status, or disability-related adjustments.
Expert Insight
Dr. Amira Khan, an economist at the University of Manchester, says:
“The increases in household costs reflect systemic issues in how essential services are funded. While government relief like the £90 payment is important, long-term financial planning and support for vulnerable groups must also be addressed.”
Future Outlook – Will Things Get Better?
Inflation has started to settle, but rising household costs are expected to continue into late 2025. While the Bank of England is cautious about interest rate hikes, further adjustments could affect mortgage holders and renters alike.
Stay updated through:
- Your Universal Credit journal
- Local council websites
- Official government portals like GOV.UK
Frequently Asked Questions (FAQs)
Q1: What if I don’t get the £90 payment?
If you haven’t received the payment by mid-April, contact DWP or HMRC. Ensure your benefit claims are current.
Q2: Can I get council help as well as the £90 payment?
Yes. These are separate programs and receiving one doesn’t affect eligibility for the other.
Q3: I don’t get any benefits. Can I still get help?
Possibly. Many local councils offer discretionary help for those on low incomes or in financial crisis.
Q4: How do I contact my local council?
Use this tool to find your council: https://www.gov.uk/find-local-council
Final Thought
The household cost increase 2025 is adding pressure to already stretched budgets. But there is help available. From automatic payments to local grants, UK residents have options to cushion the impact. The most important step is to stay informed, check your eligibility, and take action early. Whether you’re receiving benefits or just getting by, there’s support that can make this period more manageable.
If this guide helped you, share it with others who may be struggling—and don’t forget to explore your local council’s support page for personalised help.
