£128 Monthly Household Cost Increase in April 2025: In April 2025, UK households are experiencing a notable rise in the cost of living, with average expenses increasing by up to £128 per month. This surge is caused by a combination of higher energy bills, council tax, water rates, and broadband charges. If you’re wondering whether you’re eligible for government help—and how to navigate these changes—you’re not alone. This guide breaks down everything you need to know, from the £90 cost of living payment to longer-term support, offering practical advice and up-to-date facts to help you stay in control of your household budget.
£128 Monthly Household Cost Increase in April 2025
The £128 increase in household costs this April may feel overwhelming, but help is available. From automatic £90 payments to local council grants, the UK government is offering multiple lifelines. The key is to understand what you’re eligible for and take action now. Staying informed, budgeting smartly, and accessing the right support can make a big difference in navigating this financial squeeze.
| Topic | Details |
|---|---|
| Average Monthly Cost Increase | Up to £128 |
| Main Cost Drivers | Energy bills, council tax, water rates, broadband |
| Support Available | £90 Cost of Living Payment (April 2025), Household Support Fund |
| Eligibility | Recipients of Universal Credit, Pension Credit, ESA, JSA, or other means-tested benefits |
| Application | Automatic for most; Household Support Fund via local councils |
| Additional Help | Local councils, Citizens Advice, energy-saving tips |
| Official Website | GOV.UK Household Support Fund |
What’s Causing the £128 Monthly Household Cost Increase in April 2025?
A variety of regulated and market-linked charges are behind this month’s increase:
Energy Bills
The Ofgem energy price cap has been adjusted, raising annual energy bills by an average of £111, translating to nearly £9.25 more per month. This is due to global fuel costs, infrastructure maintenance, and energy provider operational expenses.
Water Bills
Water UK reports that water and sewerage bills are rising by an average of £123 annually, or about £10.25 monthly, depending on your location.
Council Tax
Most councils in England and Wales are raising council tax by 5%, while some councils in crisis—such as Birmingham City Council—have been allowed to implement rises of up to 15.6%. This can mean an increase of £6–£15 per month for many households.
Broadband and Mobile Tariffs
Telecom companies are applying CPI+3.9% increases. For the average household, this translates to £1.50–£3.00 more per month, though bundled services may see steeper hikes.
The £90 Cost of Living Payment – Who’s Eligible?
To offset some of these increases, the Department for Work and Pensions (DWP) is issuing a £90 cost of living payment in April 2025.
Who Qualifies?
You are eligible if you receive any of the following benefits:
- Universal Credit
- Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Child Tax Credit or Working Tax Credit (administered by HMRC)
How Do You Get It?
No need to apply. If you qualify, the payment will be automatically deposited into your bank account, generally with the reference DWP COL or HMRC COLS.
Household Support Fund – Extra Help for Essentials
The UK Government has extended the Household Support Fund with £742 million allocated to local councils between April 2025 and March 2026.
What Can It Help With?
- Food and groceries
- Energy and water bills
- Clothing and household goods
- Housing costs (not covered by other benefits)
Each local council has flexibility in how funds are distributed, offering:
- Vouchers
- Cash grants
- Direct payments to utility providers
Real-Life Example: Sarah’s Story
Sarah, a single mother of two in Leeds, saw her energy bill rise by £22 this April. Coupled with higher council tax, her monthly outgoings jumped by over £100. However, thanks to the £90 payment and a £150 voucher from her local council’s Household Support Fund, she was able to afford groceries and pay off a utility bill.
Impact on Different Groups
Pensioners
Many retirees on fixed incomes are particularly vulnerable to these increases. Pension Credit claimants are eligible for both the £90 payment and energy discounts via the Winter Fuel Payment scheme.
Low-Income Workers
Those working minimum-wage or part-time jobs may not receive benefits but could qualify for council-level support, food banks, or charity assistance.
Disabled Individuals
Disability Living Allowance (DLA), Personal Independence Payment (PIP), or Attendance Allowance claimants might receive extra support, including prioritised access to the Household Support Fund.
Tips to Cut Down Your Monthly Costs
1. Conduct a Home Energy Audit
Small changes like LED bulbs, insulating windows, and using draft stoppers can save up to £25/month.
2. Switch to a Cheaper Broadband Provider
Use Ofcom’s approved broadband comparison tool to find better deals.
3. Use Budgeting Apps
Free tools like Money Dashboard, Emma, or even your bank’s built-in app can help you track and reduce spending.
4. Check for Hidden Discounts
Always ask your council about discounts for single occupancy, disabilities, or students.
Expert Insight
Dr. Amira Khan, an economist at the University of Manchester, explains:
“The April cost increases reflect long-term structural issues in utility and public service funding. While the government’s short-term relief is welcome, households must also prepare for further inflation-linked adjustments throughout 2025.”
Future Outlook – Will Things Get Better?
While inflation has started to stabilize, many analysts predict that living costs will remain high through late 2025. The Bank of England has not ruled out further interest rate changes, which could impact mortgage and loan repayments.
UK £200 Cost of Living Payment 2025 – Check Eligibility & Payment Date Now!
UK Households Can Claim £150 Free Voucher – Check Eligibility & How to Use It!
Frequently Asked Questions (FAQs)
Q1: What if I don’t receive the £90 payment by mid-April?
A: Contact DWP or HMRC directly. Ensure your benefit claims are up to date.
Q2: Can I receive both the £90 payment and support from my council?
A: Yes, they are separate schemes and do not affect each other.
Q3: I don’t receive benefits. Can I still get help?
A: Possibly. Many councils offer discretionary support for low-income earners or those facing temporary hardship.
Q4: How do I contact my local council?
A: Use the GOV.UK council finder: https://www.gov.uk/find-local-council
