There’ll be parties and fireworks tonight as people herald the New Year – but it’s unlikely to be a good one for anyone’s wallet. Fresh price hikes, new tax rules, dearer public transport fares and more will all cut into household budgets in 2025.
Have your say! Are your worried about fresh price hikes in the coming year? Have you already planned for it, or will you need to rethink how you spend your money? Comment below, and join in on the conversation.
Household energy bills are going up by just over 1%, after a larger 10% increase was implemented in October. Energy regulator Ofgem says that people should be shopping around for the best deals, rather than sticking with the same provider out of loyalty or convenience – you could save up to £140 per year with a switch.
Big price hikes are going to hit your water bill too, as water companies try to raise money for essential maintenance and new infrastructure starting in 2025, reports the Manchester Evening News.
Public transport is going to be dearer, with the end of the government-backed £2 bus fare scheme. The new maximum for a single bus ticket will be £3, though many companies are opting not to take charge the full amount. Train fares will be going up in March as well, up to 4.6% – which the UK Treasury says is “the lowest absolute increase in three years”.
Alcohol duty rates are rising for most drinks, though the government stuck with the message that pints will be 1p cheaper. Vehicle Excise Duty is also going up, and stamp duty discounts on property are going down.
It’s not all bad news – the National Minimum Wage will rise, with a particularly healthy boost for young people. 1.2 million Universal Credit claimants will better off by £420 each year according to the DWP, owing to changes in the debt repayment scheme.
The government say that 60,000 more carers will have access to the Carers Allowance, which will increase by £45 a week. Interest rates are expected to drop in 2025, with some economists saying that they expect three or four rounds of reductions in 2025.
Have your say! Are your worried about fresh price hikes in the coming year? Have you already planned for it, or will you need to rethink how you spend your money? Comment below, and join in on the conversation.