Money Wellness, one of the country’s leading debt and money advisory services, has launched a new interactive Household Bills Calculator to help households prepare for an expected increase in essential bills starting April 1, 2025.
According to the tool, the average household can expect to see an increase of around £660 per year in essential bills, including energy, council tax, water, broadband, mobile phone, food, TV license, and car tax.
The free-to-use calculator, available on the Money Wellness website, allows users to input their current household expenses and receive a personalized forecast of the expected price increases for each category. This tool aims to provide clear and tailored insights to aid in budgeting and preparation for the upcoming price hikes.
Sebrina McCullough, external director at Money Wellness, expressed the importance of having access to simple and practical financial tools in light of the multiple household cost increases. She stated, “Our new interactive calculator makes it easy for people to understand exactly how these increases will affect their budget, allowing them to take proactive steps to stay on top of their finances.”
This launch comes at a time when many UK households are already facing challenges with high energy bills, increasing food prices, and mounting financial stress. Money Wellness is committed to providing accessible and practical support to ensure individuals have the necessary information to make informed decisions about their money.
The energy price cap is expected to rise by 6.4% from next month, adding an average of £111 per year to the bills of households not on a fixed-rate tariff. This brings the total bill for a typical variable-rate tariff household to around £1,849, a 9.4% increase from this time last year, and affecting approximately 26 million households.
Water bills are also projected to rise by 36%, adding an average of £123 per year to the bill. Smaller price increases are expected over the next five years.
Most councils are planning to increase their bills by the maximum allowed 4.99%, with only a handful choosing to freeze or opt for smaller rises. Six councils have been granted permission to raise their bills by up to 10% due to the need for additional resources to maintain basic services.
Broadband and mobile mid-contract price hikes will vary depending on the provider, with some already implementing increases and others set to do so on April 1. On average, longstanding customers can expect a 6.4% increase, while those with more recent contracts may see a fixed annual increase of £3-£3.50 per month.
Other expected increases include a £5 rise in TV license fees, raising the annual cost to £174.50, and an average £30 increase in car tax, depending on the vehicle.
Inflation rates for food prices are also expected to increase, with experts predicting a 3.4% rise in 2025, adding to the burden of the weekly food shop, which has already more than doubled in the past three years.
These combined increases are estimated to cost households an extra £660 on average over the next 12 months.
McCullough emphasized the potential impact of these increases on low-income families, stating, “These rises will be a real concern for millions of families already struggling, placing significant strain on household budgets.” She also urged those facing financial difficulties to seek support and assistance from organizations like Money Wellness, which offers services such as budget creation, debt solutions, access to grants and social tariffs, and assistance in claiming entitled financial support.
Money Wellness has also released a report on the effects of rising bills on low-income households in recent years, which is available for reading on their website.
For more information or to arrange an interview with a Money Wellness spokesperson, please contact Caroline Chell at caroline.chell@moneywellness.com or 07814448564.
Money Wellness is commissioned by the Money and Pensions Service (MaPS) to provide free debt advice and is one of two debt relief order (DRO) hubs, alongside Citizens Advice. In the previous year, Money Wellness has supported over 330,000 individuals with £4.3 billion worth of debt and conducted nearly 21,000 benefit assessments, resulting in an average increase of over £250 per month (£3,000 per year) for financially challenged customers.