Please note: This is a general overview based on multiple reputable media sources. Figures may vary slightly between reports.
UK inflation jumped to 3.5% in April 2025, the highest rate in over a year, driven by steep hikes in household bills and regulatory changes. This marks a sharp rise from 2.6% in March, and it’s being keenly felt by working families and union members.
The Office for National Statistics (ONS) attributes the rise to unexpectedly large increases in energy, broadband, mobile, and especially water bills. Despite concerns about service quality, the cost of essential services continues to climb which is tightening the squeeze on workers’ budgets.
At 3.5%, the UK now leads the G7 in inflation, surpassing City forecasts and placing increased pressure on the Bank of England to act on interest rates and monetary policy.
Key Drivers of the Inflation Surge
- Energy Bills:
Ofgem’s new price cap raised average annual dual-fuel bills by 6.4% (£111 more per year). - Water & Sewerage Bills:
A record-breaking 26.1% increase added roughly £123 to annual household costs. - Council Tax:
Most councils raised tax by 5%, adding an average of £109 per year (Band D). - Broadband & Mobile:
Contracts tied to inflation increased sharply, with mobile bills up by £15.90 on average and some broadband charges rising by over £40. - TV Licence:
Rose by £5, now at £174.50, increasing annually until 2027.
Tax and Policy Changes Affecting Workers
- Road Tax (Vehicle Excise Duty):
Now £195 for standard cars.
Even electric vehicles are now taxed, rising to the same amount after the first year. - Stamp Duty:
First-time buyer relief now limited to homes under £300,000.
The general threshold dropped from £250,000 to £125,000.
Cost Pressures on Employers Passed to Consumers
- National Insurance:
Employer contributions increased:- Threshold cut from £9,100 to £5,000
- Rate raised from 13.8% to 15%
- Other Business Costs:
- Minimum wage hike: Added £2.73 billion to business payrolls.
- Packaging tax (2025): Expected to cost £2 billion.
Retail giants including Tesco, Amazon, and John Lewis warn of inevitable job cuts and higher prices due to rising costs.
Other Notable Price Rises
- Food & Drink:
Up 3.4% year-on-year (from 3% in March). - Transport:
Rose 3.3%, nearly triple March’s 1.2%. - Recreation & Culture:
Up 3.1% from 2.4%.
What This Means for WEU Members
For working families and WEU members, these inflation-driven increases amount to a real-terms pay cut. While wages stagnate, essentials keep getting more expensive. This highlights the urgent need to belong to the WEU to ensure that a Trade Union is standing up for you
Main points
- April 2025 marked the most expensive month for UK households in over a year.
- Living costs are outpacing wages, with working people paying the price.
- Belonging to the WEU is essential now more than ever as it help us to campaign for fairness, to protect living standards and protect your employment rights.
You can support the WEU:-
Help distribute WEU leaflets – contact the office to request copies
Encourage colleagues to join the WEU
Share our website and updates widely
A Message from Stephen Morris, General Secretary, Workers of England Union
“Members are working harder for less. While profits grow, pay is squeezed and prices soar. This is exactly why the WEU matters. Help the WEU campaign for fair wages, protect your living standards, and defend your employment rights.”
If you’d like to get involved, contact the WEU office.