Households suffer miserable year of across-the-board bill increases

This year has been a miserable one for households after across-the-board price hikes on everything from energy to council tax left many struggling to balance their budgets.

The so-called “Awful April” price hikes combined with high energy costs saw the average household facing an annual increase of £1,254 from essential bill rises, according to figures from comparison site Uswitch.

Most areas in England saw council tax bills rise by 5% – the maximum amount permitted – with some including Birmingham, Bradford, Newham, Somerset, Trafford, and Windsor & Maidenhead granted special permission to go even higher.

Water bills increased by an average £123 per year – the largest rise since the industry was privatised in 1989.

Broadband and phone bills also rose while the cost of a TV licence and the standard rate of car tax both increased by £5 – with electric vehicles no longer exempt.

Meanwhile, Ofgem’s energy price cap – which sets bills for households still on standard variable tariffs rather than fixed deals sought out independently – started the year at £1,738 for the average household and will end it at £1,755 before it rises to £1,758 on January 1.

Uswitch spokeswoman Sabrina Hoque said: “Pressure points have been widespread. Energy debt hit an eight-year high in October, with households now owing £780 million to their suppliers. The strain is so severe that more than two million homes say they won’t turn on their heating this winter – a fifth higher than last year.

“Similarly, mobile and broadband bills have been a key area of concern, with average annual jumps of £21.99 for broadband and £15.90 for mobile. In the last few months, we have seen nearly every major provider announce updated price rise rates for new customers, with monthly increases going up to as much as £4.

“For many broadband and mobile customers, bills are set to rise again in April 2026. If you are out of contract or your deal is set to expire ahead of April, it is time to take action. Out-of-contract rates tend to be more expensive, and you could save an average of £203 a year by switching to a new broadband deal.”

Citizens Advice chief executive Dame Clare Moriarty said: “The cost-of-living crisis is not over. Stubbornly high bills and increasing living costs mean four million people are in a negative budget, meaning they can’t afford essentials like energy bills, rent, or food.

“Our advisers see the impact of these punishingly high costs every day. People come to us feeling like they’re constantly fighting to stay afloat but, despite their best efforts, are sinking further into the red.

“Everyone should be able to afford the essentials and that’s why better targeted support is crucial. We want the Government to increase Local Housing Allowance to help those struggling with their rent and improve bill support to ensure sky-high utility costs, like energy and water, don’t continue to stretch household budgets beyond breaking point.”