The 5 household bills set to rise in 2025 and how to combat each hike

Although inflation is easing, mortgage interest rates are dropping and new tax rules mean a boost for hard-pressed consumers, 2025 brings a raft of hikes to everyday household bills from insurance premiums to grocery shopping and utilities. 

Switching and comparison website Switcher.ie have revealed which expenses are on the up in 2025 and here is how to combat costs, reap savings and prepare for the year ahead. 

Energy 

Government plans to revert VAT on gas and electricity to 13.5% could add €70 to the average annual electricity bill and an extra €60 to yearly gas costs. An increase to the carbon tax in May could add a further €20 to gas bills, too.  

Last year, the Commission for Regulation of Utilities (CRU) also hiked grid or ‘network’ fees charged to energy suppliers. If suppliers face a similar increase this year, this could limit their ability to reduce prices, even if wholesale costs do fall. 

With yearly savings as high as €791 for the typical household switching to the cheapest deal, there’s never been a better time to shop around for a cheaper energy plan.

Broadband and mobile

In 2023, many telecom giants introduced yearly, built-in price increases to consumer contracts based on the rate of inflation. These hikes are now automatically applied to bills in April each year, and though providers haven’t yet announced this year’s rises, some bundled plans jumped by as much as €96 in 2024.

If you’re out of contract, switching to a cheaper broadband or mobile plan will help offset any upcoming price increases. Remember to also check the provider’s network coverage where you live and, if you use 5G, that they offer unlimited 5G data as standard. 

Health Insurance

Soaring healthcare inflation and a rise in the number and cost of claims have seen health insurance premiums jump by 11% in 2024, with the average premium now standing at €1,647 per year. 

Three of the main providers pushed up costs in October last year and, more recently, in January 2025; with some family plans jumping by €328 per annum. 

If your premium is going up, consider switching to a cheaper policy at renewal but take the time to review any new policy carefully. 

Consider an affordable deal that also fully protects your and your family's health needs and if you have any questions, contact your insurer or the Health Insurance Authority (HIA).

Car Insurance

Similarly, car insurance premiums spiked by 11% in October 2024 which is 15 times the rate of inflation with drivers now forking out an average of €568 a year. 

A perfect storm of soaring car repair costs, an increase in claims and uninsured drivers are driving premiums up, with little sign of relief in the coming months.

When your policy is up for renewal, it pays to shop around for multiple quotes. If you find a cheaper deal, you could also ask your current provider if they’ll price match. You can drive costs down further by buying online, opting for an upfront, annual payment instead of monthly, and adding an experienced named driver to your policy.

Groceries

Food shoppers have also faced a raft of price hikes in recent months with a surge in everyday essentials like milk, beef, butter, and eggs with some items jumping as much as 8% compared to last year.

Volatile weather driving up commodity prices has caused food inflation to climb to 3%, with The Central Bank predicting a peak of 3.2% in mid-2025. 

Simple swaps like switching to a discounted supermarket chain, opting for own-brand labels, bagging yellow-sticker bargains, and using discount codes and vouchers wherever possible could help reduce a weekly grocery shop of €195 to €117.