Households are likely to see their annual bills rise by about £80 from April, a notable drop compared with last year’s £660 increase. However, the apparent easing may prove temporary, as global tensions are already contributing to rising fuel costs, which could lead to further increases in energy, food and transport expenses later in 2026.
To help individuals assess the impact on their finances, Money Wellness has introduced an upgraded interactive Household Bills Calculator. The tool allows users to enter details of their current spending across categories such as energy, council tax, water, broadband, mobile phones, TV licence and car tax, producing a tailored forecast of future costs. It is designed to provide practical insights and support more effective financial planning.
The free tool can be accessed here: https://www.moneywellness.com/cost-of-living-calculator
Bill increases this April
Several essential costs are increasing from 1 April, including council tax, water bills and telecoms contracts. But these are partly offset by a fall in the energy price cap, reducing the typical dual-fuel bill to around £1,641 a year.
The main changes include:
- Council tax: Most councils are increasing bills by around 4.99%, adding roughly £108 a year for a typical Band D household
- Water bills: Average increase of £33 a year
- Broadband and mobile: Bills rising by around £42 a year for many customers
- TV licence: Increasing by £5.50 to £180
- Car tax: Standard rate rising by £5 to £200
- Energy: Typical bills falling by around £117, helping offset other increases
Overall, households will see bills rise by around £80 a year on average.
Clouds on the horizon
Money Wellness warns that while April’s increases are relatively modest compared with previous years, rising global tensions could push household costs higher later this year.
Oil prices have already surged following the escalation of the conflict in the Middle East. This has contributed to a 5p-per-litre increase in petrol prices, adding roughly £2.50 to the cost of filling a typical 50-litre tank.
Sebrina McCullough, external director at Money Wellness, said: “Compared with the huge bill increases households have faced in recent years, this April looks relatively manageable. But the cost-of-living pressure is far from over. Global tensions are already pushing up fuel prices, and that can quickly feed through into energy bills, food and transport costs.
“Many households are still financially fragile, so even relatively small increases can make a real difference. Our Household Bills Calculator helps people see exactly how these changes could affect their budget, allowing them to plan ahead and avoid surprises.”
