April 2026 Bill Shock: Every UK Cost That Just Went Up — And the One That Dropped
April 1st has brought a wave of household bill increases across the UK — but there is one bright spot. Here is everything that changed and what it means for your budget.
What Went Down (Temporarily)
Energy bills dropped. For a household using a typical amount of gas and electricity under Ofgem price cap, the annual bill falls to £1,641.
But do not get comfortable — analysts at Cornwall Insight forecast an 18% jump to £1,929/year by July as the Iran war impact hits wholesale energy prices.
What Went Up
- Council tax: Average increase of 4.9%. Band D property now averages £2,392/year (up £111). Some councils approved for bigger hikes
- Water bills: Up £33 to £639/year in England and Wales (up £42 in Scotland to £532)
- Broadband: BT, EE, Plusnet, Virgin Media adding £4/month. Sky £3/month. Vodafone £3.50/month — roughly £50/year extra across the board
- TV licence: Up from £174.50 to £180/year
- Car tax (VED): Standard rate up from £195 to £200/year for cars registered after April 2017. EVs now included
- Tax thresholds frozen: The government extended the income tax threshold freeze until 2031 — meaning more people creep into higher brackets as wages rise (a “stealth tax”)
The One Good News
Minimum wage rose to £12.71/hour starting today. For full-time workers on minimum wage, this adds roughly £1,400/year before tax.
Prescription charges in England have also been frozen, and councils can now distribute cash from a new Crisis and Resilience Fund to struggling households.
Net Impact: Does the Wage Rise Cover the Bill Hikes?
For minimum wage workers: the pay increase roughly offsets the combined bill rises if you do not drive. For households above minimum wage: you are absorbing the increases without the offset.
For everyone: the July energy price jump is the real concern. That 18% increase will add roughly £290/year to typical bills — and it comes alongside fuel prices already at $4/gallon equivalent.
What You Can Do
- Energy: Lock in a fixed tariff now if you can find one below the July forecast
- Broadband: Check if you are out of contract — you could be paying up to £9/month more than in-contract rates. Call to negotiate or switch
- Water: Trial a water meter if you have not already. Check eligibility for discounted tariffs
- Council tax: Check for exemptions/discounts (single person: 25% off, student households: exempt)
- TV licence: If you only watch streaming services and do not watch live BBC, you may not need one
Sources: BBC News | BBC (Minimum wage)
