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April price rises: how much more will you need in emergency savings?
Which? reveals the best accounts for building a rainy day fund ahead of council tax and utility bills increasing next month
Upcoming price rises in April are set to squeeze household finances, and new research shows savers will need an extra £1,780 in their rainy-day funds to cover essential expenses.
The financial services company Hargreaves Lansdown has calculated how much you might need in emergency savings should you fall on hard times, ahead of a series of bills going up in what's being dubbed 'Awful April'.
Here, Which? examines rainy-day funds and offers tips on finding the best savings accounts.
How much are bills going up by?
It's said there are two certainties in life, but there is a strong argument for adding April price rises as a third.
Inflation has eased considerably since it peaked at 11.1% in October 2022, but this spring’s hikes will impact household budgets nonetheless.
Bills for water, energy, broadband and mobile, and TV licences will all go up. Council tax will increase by 5% in most areas of England, and those in Wales and Scotland could pay as much as 15% more in the new financial year.
According to Hargreaves Lansdown, households currently spend an average of £2,062 on essentials each month. But from April, this could rise by £49.
How much more will you need to save?
The latest price increases will have a direct impact on savers building an emergency fund to pay to cover essentials should they fall into financial hardship.
Hargreaves Lansdown advises that working people should have enough emergency savings to cover three to six months’ worth of essential expenses, but retirees need cover for one to three years.
Retired people need more tucked away because it's harder for them to replenish their savings pot. Having savings you can dip into if needed is also preferable to drawing down your pension.
This table shows how much more savers will need to hold in their rainy-day funds to cover upcoming price hikes:
| Period of essentials to cover | Emergency savings needed today | Emergency savings needed from April | Extra savings needed |
|---|---|---|---|
| Three months | £6,186 | £6,334 | £148 |
| Six months | £12,372 | £12,669 | £297 |
| One year | £24,744 | £25,337 | £593 |
| Three years | £74,232 | £76,012 | £1,780 |
Source: Hargreaves Lansdown
The best accounts for emergency savings
Instant-access accounts and cash Isas are ideal for emergency savings. They allow you to deposit money whenever you want, and many will let you dip into your pot as often as you need to.
This table shows the best rates for instant-access accounts, ordered by rate and excluding those that impose restrictions on opening and withdrawals.
| Instant-access account | AER | Instant-access cash Isa | AER |
|---|---|---|---|
| GB Bank Easy Access Account (Raisin exclusive*) | 4.6% | Chip | 5% |
| Sidekick High Yield Cash Reserve | 4.59% | Tembo Money | 4.8% |
| Chip Instant Access Account | 4.58% | Monument Bank | 4.76 |
| Monument Bank Easy Access Account (Raisin exclusive*) | 4.56% | Kent Reliance | 4.56% |
| Kent Reliance Easy Access Account | 4.55% | Charter Savings Bank | 4.55% |
Source: Moneyfacts. Correct as of 11 March 2025, but rates are subject to change.
As you can see, the best rates are offered by smaller, challenger banks – most of which are online or app-only accounts. The only provider in the table that allows you to open and manage your account via a physical branch is Kent Reliance.
Cash Isas currently offer the best instant-access rates. The main advantage of this type of account is that you can save up to £20,000 a year without paying a penny in tax on interest earned.
- Find out more: best savings accounts 2025
Don't neglect other savings and investments
Building an emergency savings net is vital, but not at the expense of other aspects of your finances.
For example, you should still think about longer-term savings goals and consider locking money away in a fixed account. Unlike an instant-access account, which has a variable rate that can change at any time, fixed-term bonds guarantee you the same returns for a set period – usually between one to five years.
It's also crucial you keep paying into your pension. Sarah Coles, head of personal finance at Hargreaves Lansdown, advises: 'If you have regular surplus income to put away, you could direct part to cash and part into a pension until you have enough set aside as an emergency fund, and then start fully investing your money.
'Equally, an emergency fund, by its very nature, will be spent when it’s needed, so replenishing this while continuing to invest for the longer term is sensible.'
- Find out more: types of savings accounts
How to budget for emergencies
How much more you need to save will depend on your individual circumstances. For example, you may have a family to support or health problems that mean you don't have a reliable source of income.
On the other hand, even if you have a stable job, you may be lucky enough to have family members who can help if things get rough.
Go through your current spending to identify the things you simply can't live without and work out what each costs.
Our guide on how to budget is packed full of helpful advice and practical tips to calculate your spending, draw up a money saving plan and stay on track with your financial goals.
What to do if you are worried about your finances
If you have lost your financial safety net, are struggling to pay the bills, or have fallen into debt, there are a number of independent charities that can help.
StepChange offers free, confidential debt advice from money experts, recommending the best solution based on your circumstances. Citizens Advice offers free guidance on everything from debt solutions to finding financial advice, while Money Helper can also advise about living on a squeezed income.
You can also read up on free advice from Which? on how to deal with debt.
If you are worried about keeping up with your mortgage, credit card or loan repayments – or you've missed payments already – you should always contact your lender in the first instance.
