UK households are preparing for a sharp rise in everyday living costs as several essential bills are set to go up in July 2025. From energy and water to council tax and the TV licence fee, these hikes could raise monthly expenses by as much as £123, adding serious pressure to family budgets already feeling the pinch.
So what exactly is increasing, and what can you do to soften the blow? Let’s break it all down and look at practical steps you can take to manage these rising costs.
Summary
Here’s a quick snapshot of what’s happening in July:
| Bill Type | Increase Amount | Key Details |
|---|---|---|
| Energy Bills | +£47/year | 3% rise in energy price cap |
| Water Bills | +£86/year | Start of 36% increase over 5 years |
| Council Tax | +£108/year | 4.99% average hike across most councils |
| TV Licence | +£5/year | Increase from £169.50 to £174.50 |
| Total Annual Impact | £266 | Equals up to £123/month for some households |
These increases are driven by inflation, rising operational costs, and infrastructure upgrades. But with a few smart moves, you can reduce their impact.
Energy
The UK’s energy price cap is rising again by around 3%, meaning the average household will pay £47 more annually—from £1,738 to £1,785.
Why the rise? Higher wholesale energy costs and national infrastructure upkeep are the main reasons. While this isn’t the biggest jump we’ve seen, it adds to a long list of growing expenses.
How to cut energy costs:
- Switch providers using price comparison websites
- Upgrade home insulation (loft, windows, doors)
- Use smart thermostats to better control heating
- Replace old bulbs with energy-efficient LEDs
- Choose A+++ rated appliances for lower energy use
Even small adjustments can shave pounds off your monthly bill.
Water
Water bills are also rising in July by an average of £86 per year. This is just the beginning, as bills are set to rise by 36% over the next five years.
Why is this happening? Water companies are investing in improving infrastructure and meeting environmental standards. That’s good long-term—but it comes with a price.
Water-saving tips:
- Fix leaky taps and toilets
- Install low-flow showerheads and aerated taps
- Take shorter showers
- Run dishwashers and washing machines only when full
- Check if you’re on the best water tariff for your area
Water meters can also help if your usage is lower than average.
Counciltax
A 4.99% council tax hike will hit most households, adding around £108 per year. The exact amount varies based on your local council and property band.
This increase helps fund local services like rubbish collection, social care, and policing. Councils argue that rising service demand and inflation leave them with no choice.
Ways to save:
- Apply for a single person discount (25%)
- Check if your home is in the right tax band
- Contact your council about hardship support schemes
- Spread the cost with monthly instalments
If you’ve had a change in circumstances, such as unemployment or illness, additional reductions may apply.
TVlicence
The annual TV licence fee is increasing by £5, going from £169.50 to £174.50 starting July 2025.
Why the increase? The BBC is adjusting for inflation and maintaining services across TV, radio, and online platforms. While it’s not a massive jump, it still adds to your yearly outgoings.
Consider your options:
- If you don’t watch live TV or BBC iPlayer, you may not need a licence
- Rely on on-demand platforms like Netflix or Amazon Prime
- Check TV Licensing’s site to see if you qualify for cancellation
Cutting the licence could save you nearly £15 a month if you don’t use live TV.
Tips
Managing a £123 monthly hike isn’t easy, but you can make it more manageable with a few adjustments:
1. Shop Around: Use comparison sites to switch broadband, insurance, or energy providers.
2. Apply for Government Support: Check if you qualify for energy grants or council tax discounts.
3. Use Budgeting Tools: Apps like Money Dashboard or Emma can track spending and help you plan.
4. Cut Non-Essentials: Review subscriptions and unnecessary services you can pause or cancel.
5. Look Into Energy Rebates: If you’re on a low income, schemes like the Warm Home Discount may apply.
July’s bill increases are part of a broader cost-of-living trend. Staying informed and proactive can make the difference between struggling and staying in control. Take action now and plan ahead—you’ll thank yourself later.
FAQs
Why are bills increasing in July 2025?
Due to inflation, higher service costs, and infrastructure upgrades.
How much is the energy bill rising?
By £47 annually due to a 3% price cap increase.
Can I cancel my TV licence?
Yes, if you don’t watch live TV or use BBC iPlayer.
How much is the council tax increase?
Around £108 yearly for most households (4.99% rise).
What’s the best way to lower bills?
Switch providers, insulate your home, and seek discounts.
