Council Tax just went up – Here’s how to save on household costs

Council Tax bills increase in 2025

Tips to cut household costs:

1. Save on Council Tax bills

2. Optimise your energy usage

3. Water-saving measures

4. Review subscriptions and services

5. Budgeting and financial planning

Energy, water, car tax, TV licence and council taxes are all increasing, it’s no surprise many have called April 2025 “Awful April”. But how exactly are you affected by the council tax increases as well as other bills, and is there  a way you can reduce costs?

Council Tax bills increase in 2025

Council Tax bills rose for millions of households in April 2025. To make matters worse, according to the Local Government Association there could be further cuts to services.

England

Almost all councils in England put bills up by the maximum amount allowed (4.99%). Some councils were granted permission to increase rates beyond the standard cap due to financial pressures. For instance, Bradford implemented a 10% rise, while Newham increased rates by 8.99% and Birmingham by 7.5%. As a result, the average Band D council tax bill has risen by £109, bringing the total to £2,280 for the 2025–26 financial year.

Scotland

Scottish households experienced some of the most substantial increases in two decades. East Lothian Council confirmed a 10% hike, and Falkirk Council set the highest increase to 15.6%. These rises came after the Scottish Government ended the council tax freeze, leading to varied increases across different regions.

Wales

In Wales, the average Band D council tax bill increased by 7.2%. The exact amount varies depending on the local authority, but the overall trend indicates a significant rise in household expenses.

Northern Ireland

While Northern Ireland operates a different system, known as domestic rates, residents are also experiencing increases in their household bills. The exact figures vary by council area, but the upward trend is consistent with the rest of the UK.

Tips to cut household costs:

1. Save on Council Tax bills

You may be eligible for support to help pay your Council Tax bills, including discounts or exemptions:

• Single-person discount: If you live alone, you can receive a 25% discount.
• Low-income support: Those on low incomes or certain benefits may qualify for Council Tax Reduction schemes.
• Disability reduction scheme: If someone in your household has a disability, you might be eligible for a reduced bill.
• Student exemptions: Full-time students are typically exempt from paying council tax.

If you think these apply to your situation, be sure to contact your local council. If none of these apply, you can look at other ways to save on your household bills.

2. Optimise your energy usage

The energy price cap, which is the maximum amount suppliers can charge, rose by 6.4% in April 2025, adding approximately £111 to the average annual bill! It’s the third time we've seen a quarterly increase and a rise of 9.4% compared with April 2024. To mitigate this:

• Switch providers: Use comparison websites to find better deals, or sign up to an energy auto-switching service like Switchd.
• Energy efficiency: Invest in energy-efficient appliances, consider home insulation and review how you use energy throughout your home to save money on your electricity bill and other utilities. Small changes add up. For example, only boil as much water as you need — overfilling the kettle is one of the most common energy wastes. And, chop food, such as vegetables, into smaller pieces to reduce cooking time.
• Smart thermostats: These can help regulate heating and reduce unnecessary energy consumption.
• Regularly review your charges and tariffs: Take time to understand your electricity bill, including how your charges are calculated and what tariff you’re on. This will help you decide where and how to cut back, as well as compare other energy providers when looking for better deals.

3. Water-saving measures

Water bills have seen an average increase of 26%, with some areas experiencing a shocking increase of 47%! To cut costs:

• Install water-saving devices: Such as low-flow shower heads and dual-flush toilets.
• Fix leaks promptly: Even small leaks can lead to significant water waste over time. On average, a tap that drips once per second wastes about 5 litres of water a day — or 1,825 litres over a year, according to Plumberly. And that’s one tap.
  
• Use appliances efficiently: Run dishwashers and washing machines with full loads.

4. Review subscriptions and services

Broadband and mobile phone bills are estimated to increase by up to £42 annually, so it’s a good time to review subscriptions and bills to see if you can cut or reduce costs. Here’s how:

• Audit subscriptions: Cancel unused or unnecessary services.
• Negotiate with providers: Contact your service providers to inquire about better deals or loyalty discounts -  particularly if your mobile contract is due to be renewed or broadband contract is ending. Budgeting app Airtime Rewards allows you to earn cashback on purchases made at various retailers to offset mobile phone bills.
• Bundle services: Combining services can sometimes lead to cost savings. For example, if you have Amazon Prime, you have access to Amazon Music and Amazon Prime Video which means you may not need other music and film streaming services.

5. Budgeting and financial planning

Implementing a structured budget can help manage rising costs:

• Create a budget: Making a budget can be fun, try keep it simple with realistic goals, and be sure to reward yourself when you reach your goals. You may find it easier to use budgeting apps like Snoop, Emma, and Plum to track spending, identify savings opportunities, find cheaper deals and more.
• Build an emergency fund: This may seem harder than ever with bills going up. However, its vital to have some money saved to cover unexpected expenses or an emergency and avoid relying on short term loans, which an be expensive.

In conclusion

The recent increases in council tax and other household bills present challenges for us all. Now is the time to take steps to manage your money and try reduce your expenses. Make it a habit to regularly look your financial situation, check for saving opportunities and discounts.

For more information, check out our dedicated blog area: Money saving tips.