You have the opportunity to review your finances at the end of the fiscal year, but there are a few April money changes that may require you to take quick action to prevent additional expenses
In April, there will be a plethora of significant financial changes that could affect your finances, such as bill increases, ISA topping, utilizing VCTs, and state pension adjustments.
Additionally, April is when providers usually raise your bills, even though it's primarily about the end of the tax year.
We outline the upcoming April money changes and explain why you might need to take quick action to avoid losing out.
The article goes on below.
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1 April: increases in household expenses.
Starting on April 1st, a number of household expenses will increase, such as the TV license, water bills, and council tax.
Council tax.
It is anticipated that most local authorities in England will increase council tax, though the exact amount will vary depending on your location. There will probably be an increase of about 5%.
Due to funding cuts and low current rates, some local authorities, such as Windsor and Maidenhead and North Somerset, have been granted permission to raise bills by more than this.
Checking and contesting your council tax band may help you save money if your council tax has increased. Just be aware that you may have to pay more if you are placed in a higher band.
Water costs.
The cost of investing in the pipe and sewage network will be covered by an increase in water bills of up to 13%.
Where you live will determine how much more you'll pay because water companies have different rates.
While households served by Thames Water will only see an increase of 3 annually, Southern Water customers will see their bills rise by 55 annually.
Getting a water meter could help you save money on your water bill. These can be less expensive if you live in a low-usage household and charge you according to your actual usage rather than an estimate.
You can also take easy, doable actions to cut back on the water you use. For instance, by installing water-saving devices like garden hose nozzles and tap inserts, or by having more showers than baths.
Fee for a TV license.
In April, the cost of a BBC TV license will also increase from 174.50 to 180. If you are blind, 75 years of age or older, and receive Pension Credit, you may be eligible for a discount or free TV license.
Contracts for cell phones and broadband.
Starting next month, a number of mobile phone and broadband providers will raise their monthly fees.
For instance, Sky is raising the cost of its TV packages by up to three dollars a month and its broadband deals by three.
However, some broadband companies, such as BT, Vodafone, and BT, have pledged to freeze their rates until 2027. Additionally, there are no mid-contract price increase policies in place at mobile companies Voxi, Lebara, or Smarty.
By comparing prices and moving to a better deal, you can reduce the amount you pay for your mobile phone and broadband. Enrolling in social tariffs can help those receiving benefits save money.
The prize fund rate for premium bonds was lowered on April 1.
On the first working day of every month, which is April 1st of the following month, the winners of the Premium Bonds £1 million prize are revealed.
The following day (April 2), all winners of prizes between £25,000 and £100,000 can use the Premium Bonds prize checker app or the NSandI website to see if they have won anything.
But starting in April, the chances of winning will drop from 22,000 to 1 to 23,000 to 1, and the Premium Bonds prize fund rate will be lowered from 3.6 percent to 3.3 percent. The average holder of Premium Bonds will see lower average returns on their investment and win less frequently as a result of the changes.
Premium bonds can be a helpful savings account if you don't already have any because any winnings are tax-free. In a different piece, we examine the value of premium bonds.
April 1st is the new energy price cap.
About 33 million households will be impacted by the new Ofgem price cap, which will take effect on April 1 and last from April to June.
The average household's energy bills will decrease by 117 annually, or 7%, as a result of government-announced measures.
Reducing the cost of living for British citizens, including the amount that households must pay for gas and electricity, has become a top priority for ministers.
However, the decline might not last long. According to consultants at Cornwall Insight, which is highly regarded for the accuracy of its price cap forecasts, the Middle East conflict could cause the July price cap to rise 10% above the April level.
Although these kinds of deals have started to decline because of the ongoing conflict in the Middle East, it might be worthwhile to fix your energy tariff now in order to save money in the long run.
According to Uswitch, there were 22 fewer fixed energy tariffs available as of March 6 than there were a week earlier (February 27), and the price of the least expensive fixed deal increased from 1,509 to 1,640 during that time.
1 April: April salary increases.
In April, both the National Living Wage and the National Minimum Wage will increase once more. Pay will increase from 12.21 to 12.71 per hour for employees who are 21 years of age and older.
The hourly rate for workers between the ages of 18 and 20 will increase from 10 to 10.85, while apprentices and those under the age of 18 will increase from 7.55 to 8.
Although lower-paid employees will benefit from this change, businesses will incur additional expenses on top of their already increased employer National Insurance contributions.
State pensions will rise on April 6.
Under the Triple Lock mechanism, the state pension will increase by 4.8% starting on April 6. This means that individuals receiving a full new state pension will see their weekly payments rise from 230.25 to 241.30. The weekly basic state pension will rise from 176.45 to 184.90.
If you would like, you can postpone getting your state pension and get a higher rate when you do.
April 6th: VCT tax relief.
On April 6, the amount of income tax relief available for Venture Capital Trusts (VCTs) will decrease from 30% to 20%.
VCTs are funds that make investments in smaller, early-stage businesses that aren't publicly traded. They are therefore riskier to invest in, but the government offers substantial tax breaks in exchange.
Investors may invest up to £200,000 annually in VCTs and receive 30% tax relief, tax-free dividends, and capital gains if they hold the shares for five years.
However, the 2025 Autumn Budget confirms that this 30% tax relief will drop to 20% on April 6.
There are only a few weeks remaining before the end of the tax year to take advantage of this higher tax relief rate if you're thinking about investing in VCTs.
NHS prescription charges were frozen on April 6.
Chancellor Rachel Reeves confirmed in the 2025 Autumn Budget that the price of an NHS prescription will remain fixed at 9.90 per item for the 2026 - 2027 fiscal year.
If you are 60 years of age or older, under 16, or between 16 and 18 and enrolled full-time in school, you are eligible for free NHS prescriptions. If you receive certain government benefits, such as Pension Credit or Universal Credit, you might also be eligible for free prescription drugs.
Thresholds for income tax are frozen on April 6.
In 2026 - 2027, income tax thresholds will remain unchanged for an additional year. Until the end of the 2030 fiscal year, they will remain frozen.
As income rises and tax thresholds stay the same, the threshold freeze is causing fiscal drag, whereby taxpayers must give the taxman a larger portion of their income.
However, there are ways to lower your total tax liability, such as making charitable contributions and contributing a larger portion of your income to a workplace pension.
Dividend tax will increase on April 6.
Investors who own shares in a company receive dividends; however, if you exceed your annual dividend allowance, which is currently 500, you will be required to pay taxes on those dividends.
The rates at which taxes are paid are fixed, but they will increase on April 6.
For basic rate taxpayers, the dividend tax rate will increase from 8.75 percent to 10.75 percent; for higher rate taxpayers, it will increase from 33.75 percent to 35.75 percent. The dividend tax charge of 39.35 percent will not change for those who pay additional rate income tax.
By using up your ISA allowance, you may be able to reduce your dividend tax bills because dividend income is tax-free.
The homeworking tax was eliminated on April 6.
According to the 2025 Autumn Budget, you will no longer be eligible for the tax break that comes with working from home to pay for expenses starting next month.
Although the move is predicted to raise £100 million for labor by 2030 - 2031, thousands of home workers will suffer annual losses of up to £140,000.
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