In April 2025, UK residents will face a significant increase in household costs, with an average rise of up to £128 per month.
This surge is primarily due to higher energy bills, council tax, water rates, and broadband charges. To alleviate this burden, the UK government has introduced the £90 Cost of Living Payment and extended the Household Support Fund to offer additional financial relief.
Here’s everything you need to know about the changes, eligibility criteria, and how to claim the support available.
£128 Monthly Household Cost Increase in April 2025
As living costs continue to rise, the UK government is stepping in to support households through a combination of direct financial aid and government schemes. The £128 increase in monthly household costs is driven by several key factors:
| Main Cost Drivers | Increase |
|---|---|
| Energy Bills | Average rise of £9.25 per month due to changes in the energy price cap. |
| Water Bills | Average rise of £10.25 per month due to higher rates from Water UK. |
| Council Tax | 5% increase in council tax rates; some areas have rises of up to 15.6%. |
| Broadband & Mobile Tariffs | Price hikes of £1.50–£3.00 per month due to increased telecom charges. |
These increases combined add up to the average £128 rise in household expenses, which many families and individuals are struggling to accommodate.
Support Available: £90 Cost of Living Payment
In response to these price hikes, the Department for Work and Pensions (DWP) will issue a £90 cost of living payment starting April 2025.
This support is aimed at helping those most affected by the cost increases. Here’s who qualifies and how you can receive the payment:
Who Qualifies for the £90 Cost of Living Payment?
- Universal Credit recipients
- Pension Credit claimants
- Income Support recipients
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Child Tax Credit or Working Tax Credit recipients
If you meet one of the above criteria, you will automatically receive the £90 payment. It will be deposited directly into your bank account, with no need for an application.
Household Support Fund – Extra Help for Essentials
Additionally, the Household Support Fund has been extended to provide further relief. This fund has been allocated £742 million to be distributed by 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 the discretion to allocate funds as they see fit, providing support through:
- Vouchers
- Cash grants
- Direct payments to utility providers
Example: Sarah’s Story
Sarah, a single mother of two from Leeds, faced a rise of £22 in her energy bill and a £15 increase in her council tax.
Fortunately, she received both the £90 cost of living payment and a £150 voucher from her local council’s Household Support Fund, which helped her cover her bills and grocery costs.
Eligibility for Additional Support
The additional Household Support Fund is available to the following groups:
- Pensioners on Pension Credit or those receiving benefits like DLA or PIP.
- Low-income families not currently receiving any benefits but struggling with rising bills.
- Disabled individuals may receive prioritized access to the fund.
Practical Tips to Manage Rising Household Costs
- Energy Savings
- Conduct a home energy audit to save up to £25/month with small changes like switching to LED bulbs or using draft stoppers.
- Switch Broadband Providers
- Use comparison tools like Ofcom to find better deals and save money on broadband.
- Use Budgeting Apps
- Apps like Money Dashboard can help you track and manage spending, cutting down unnecessary costs.
- Check for Discounts
- Ask your local council about discounts for single occupancy or for individuals with disabilities.
The £128 monthly household cost increase in April 2025 poses a significant challenge for many UK residents.
However, the £90 cost of living payment and Household Support Fund are critical lifelines for those struggling to keep up with rising expenses.
Understanding eligibility, staying informed about support available, and budgeting wisely will help you navigate these challenging times more effectively.
FAQs
Who qualifies for the £90 cost of living payment?
You qualify if you receive benefits such as Universal Credit, Pension Credit, or Income-based JSA.
How can I apply for the Household Support Fund?
The Household Support Fund is administered through local councils. Contact your local council to check eligibility and apply.
How much will my monthly costs increase in April 2025?
The average increase is £128 per month, driven by energy bills, council tax, and other essential expenses.