Essential household costs are set to rise by an average of £80 per year from April, a much smaller increase than the £660 many households experienced previously. Nevertheless, this easing may not last, as geopolitical tensions continue to push up fuel prices, which could result in higher energy, food and transport costs later in 2026.
To support consumers in planning ahead, Money Wellness has rolled out an updated interactive Household Bills Calculator. The interactive tool enables users to input their current outgoings, including utilities, council tax, water, broadband, mobile services, TV licence and vehicle tax, and provides a personalised estimate of how bills may rise over the coming year. Its purpose is to offer greater clarity and assist with household budgeting.
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.”