Boss budgeting this year

Take charge of your money in 2025.

Date published: March 2025

Budgeting for your family means answering questions. How can we reduce childcare costs? Afford family holidays? Move house or buy a new car? There are more questions than ever. 

The key to financial peace of mind in the new tax year is to approach the family budget in the same way you probably deal with other tricky problems. Split it up and tackle each element separately, considering any new rules. Explore the tools in our app to help you maximise your income and reduce your spending.

Save money, treat the family

The Child Poverty Action Group calculates that the cost of raising a child from birth to 18 is an incredible £260,000 for a family with two parents. For a single parent family, the cost rises to £290,000¹.

The steepest costs can come in a child's early years, with nursery or childcare costs. But there are new bills to pay when they go to primary school. These include uniforms, packed lunches, sports kit, transport, after-school clubs, and school trips.

More help with childcare costs

New government initiatives mean there's more help to meet childcare costs. You could benefit from increasing hours of free childcare in early years but, also with children under five.

Explore all the other options for childcare support that may be available to you to see if you could make some savings. The spare money could help pay for that trip out in the school holidays, or contribute to hobbies your kids love.

Child Benefit

From April 2025, Child Benefit is due to rise by 1.7% for eligible families. That works out as £26.05 a week for the eldest or only child and £17.25 a week for younger children².

New rules mean the threshold at which Child Benefit begins has risen. When creating your budget, make sure you check what you are entitled to and include the benefit as income.

It could help support your family plans.

Benefit calculator

Households across the UK are missing out on £23 billion in government benefits each year, such as Child Benefit and Universal Credit³. Check to see whether you could be entitled to claim any benefits, using the benefit calculator in the app.

Bill increases

From 01 April 2025 the national average water bill is forecast to be £603 - a rise of £123 or 26%. This is an increase of around £10 a month. Find out about increases in your area.

Council tax rates are also forecast to rise. Find out about changes in your postcode.

If you pay your bills monthly, quarterly or annually by direct debit, make sure you tweak your budget to cover these increases. By staying proactive, you can avoid surprises and keep your finances on track.

Energy price cap

The price cap, was introduced in 2019 by the energy regulator Ofgem to limit what you pay for gas and electricity. It rose by 1% in January 2025 to £1,738 a year for a typical dual-fuel household paying by direct debit. The cap is predicted to rise again in April 2025, perhaps by another 1-2%⁴.

See if you can save money by getting a better deal switching your utility bills like broadband, mobile or energy.

It might also be worth fixing for a longer period on your energy bill, so that you can have a clearer monthly plan for your family budget.

Tools to help manage your money

To help to spot ways you might be able to reduce spending beyond childcare, use the budget calculator. Enter your salary and other regular payments going in and out to find out how much you should be spending - and, if possible, saving each month. 

The Upcoming Payments tool can help you keep on top of what’s due to go out of your account - along with standing orders, direct debits and any authorised regular payments.

Spending Insights gives you a breakdown of your spending in categories, such as bills, travel, groceries and eating in or out.

You might discover some easy savings so that you can enjoy time with your children – the things that count!

Tip - Why not stay up-to-date on the go with Payment Notifications?

Tools to help manage your money

To help to spot ways you might be able to reduce spending beyond childcare, use the budget calculator. Enter your salary and other regular payments going in and out to find out how much you should be spending - and, if possible, saving each month. 

The Upcoming Payments tool can help you keep on top of what’s due to go out of your account - along with standing orders, direct debits and any authorised regular payments.

Spending Insights gives you a breakdown of your spending in categories, such as bills, travel, groceries and eating in or out.

You might discover some easy savings so that you can enjoy time with your children – the things that count!

Tip - Why not stay up-to-date on the go with Payment Notifications?

Stay up-to-date

We can't predict what this tax year, or next will bring. But we can help you to get on top of everyday budgeting and feeling more in control of your future.

For more information on the Budget changes, check out the Government website.

Juggle Without the Struggle

New year, healthier family finances - get on top of your money in 2025.

Calm in the Chaos

This money-saving school holiday survival kit offers pocket-friendly tips and tricks to keep kids entertained without breaking the bank.

1 The Cost of a Child in 2024 | CPAG

2 Child benefit: How much is it worth and who can claim it? - BBC News

3 Policy in Practice publishes 'Missing Out' Report 2024: £23 billion of support is unclaimed each year | Money Advice Liaison Group

4 Changes to energy price cap between 1 January and 31 March 2025 | Ofgem

Our app is available to customers with a UK personal account and valid registered phone number. Minimum operating systems apply, so check the App Store or Google Play for details. Device registration required. Terms and conditions apply. 

Lloyds and Lloyds Bank are trading names of Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065. 

This information is correct as of March 2025 and is relevant to Lloyds Bank products and services only.