Six household bills getting more expensive this year – including water and energy

Brits are set to be hit with even more price hikes to their household bills this year in a major blow for struggling households.

Last year, April was coined "awful April" as Brits faced a rise to a whole raft of their everyday bills. and sadly, this year, it is set to be the same. The increases come at a time when many across the country are already feeling the pinch from the ongoing cost of living crisis. Households are set to see rises to their council Tax, broadband and mobile contracts, energy bills, and TV Licence – to name just a few. Here’s a rundown of six household bills set to rise over the next few months.

Energy bills

Ofgem's energy price cap rose by 1.2% on January 1 this year, bringing the average energy bills for a typical dual-fuel household paying by direct debit to £1,738 per year, up from £1,717. However, bills are predicted to rise again in April when the price cap changes again.

The energy price cap is updated quarterly and limits the amount suppliers can charge per unit of energy but does not cap total bills, as charges are based on actual usage. According to fresh predictions from consultancy firm Cornwall Insight, the price cap could rise again by another £24 – or 3% – to £1,762 in April.

Cornwall Insight says its prediction is based on “economic and geopolitical factors,” including the ongoing war in Ukraine, Donald Trump's reelection as US President, and “question marks over effects on economic growth in general.” It's worth keeping in mind that these are just predictions and Ofgem will not confirm its April price cap until February 25, 2025, at the latest.

Council tax

Council tax is also set to rise again by up to 5% in April after the government confirmed it will maintain the existing cap on increases. In November, Communities Minister Matthew Pennycook told the Commons this was the "right threshold" noting the pressures on council budgets.

However, this means the average household with D-band properties face an above-inflation increase of more than £100 on their council tax bill. Government figures show that the average Band D council tax for 2024-25 stood at £2,171 – a £106 increase compared to the previous year. The rise is expected to generate an additional £1.8billion for council budgets in 2025/26.

Under the current system, councils providing social care services can raise rates by up to 5%, while others are capped at 3% unless they secure Government approval or hold a local referendum. The new allowances for rises were introduced by the former Tory government in 2022.

Mobile and broadband contracts

From January 17, Ofcom will ban telecom firms from tying mid-contract price hikes to inflation and instead any and all price rises will need to be clearly laid out in "pounds and pence" on customer contracts.

Under the old rules, broadband and mobile companies were allowed to increase prices mid-contract every April in line with inflation, plus up to 3.9% extra on top of this. This saw millions of households hit by huge bill increases in 2023 of up to 17.3% after inflation surged to a 41-year high that year.

While inflation is now lower at 2.6%, consumer experts warn that fixed rises could leave some worse off. For instance, a £3 monthly increase on a £24.99 contract exceeds inflation-linked adjustments, which would add just £1.62. Meanwhile, those on higher contracts might pay less than inflation-based adjustments.

How much bills will rise from April per provider

BT: If you're a mobile customer, your price will rise by £1.50 a month from April, while TV customers will pay £2 a month more, and broadband customers will pay an extra £3 a month. Out-of-bundle services will be subject to an annual 5% increase. There will be no increases for customers who are financially vulnerable or on a BT Home Essentials package.

EE: Mobile customers will see their bill rise by £1.50 a month from April, while TV customers will pay £2 a month more, and broadband customers will pay an extra £3 a month. Out-of-bundle services will be subject to an annual 5% increase. There will be no increases for customers who are financially vulnerable or on a EE Basics package.

Three: Three mobile customers will see their bills increase this April by between £1 and £1.50 a month, depending on your data allowance. Your bill will rise by £1 a month if your data allowance is 4GB or less, or £1.25 a month if your data allowance is between 5GB and 99GB, or £1.50 a month if your data allowance is 100GB or more. Three broadband customers will see their monthly bill rise capped at £2 a month.

Virgin Media: Virgin Media customers will see their prices rise by £3.50 a month from each April. This won't apply to customers on social tariffs.

Vodafone: Vodafone broadband customers will see their bills rise by £3 a month from April, while mobile phone customers will see their prices rise by either £1 a month or £1.80 a month, depending on their contract. Customers who are identified as financially vulnerable, are on social tariffs, and pay-as-you-go customers, won't see their prices rise.

O2: O2 customers will see their airtime bill increase by £1.80 a month from April, but their monthly device repayments will remain frozen at a fixed price. Mobile broadband and smart watch customers will see a price rise of 75p. Customers on social tariffs and pay-as-you-go customers won't be subject to price increases.

Plusnet: Plusnet customers will pay £3 a month more for broadband from April.

Food prices

Inflation is the increase in the price of something over time, and currently, inflation in the UK sits at 2.6% in the 12 months to November. This meant that prices rose by 2.6% over the year. This means if something cost £1 last year, it would now cost nearly £1.03 now. This level is above the Bank of England's inflation target of 2%

The Office of National Statistics (ONS) tracks inflation, which covers the prices of hundreds of everyday items, including food and fuel. November's figure is the highest rate since March 2024, and the rise was largely due to rises in fuel and clothing prices. With inflation a tad unsteady at the moment – and with heightened costs for supermarkets and businesses coming in April – the cost of a weekly supermarket shop could rise again this year.

TV licence

The price of a TV licence will rise by £5, from £169.50 to £174.50, from April of this year. The Government said the 2.96% increase in the licence fee – which is the main funding for the BBC – aims to provide it with a "stable financial footing." The price of a black and white TV licence will also rise by £1.50, going from £57 a year to £58.50.

Under the former Tory government, the TV Licence fee was frozen for two years in 2022 and 2023. At the time, the government hailed the announcement as giving “broadcaster certainty while protecting the public from price hike.” However, in April last year, the licence fee freeze was scrapped, and TV fans were forced to pay an extra £10.50 a year to watch live TV.

Water bills

Households in England and Wales face a steep water bill increase from April. The average rise will be around 40%, which is equivalent to an average extra of £31 per year – or an average of £157 over five years. The average water bill looks set to reach around £597 a year by 2030. According to Ofwat, the average bill will increase by £86 a year in the first set of hikes this year.

The increases are part of a five-year plan to fund essential upgrades to water supply systems and reduce sewage discharges. The increase is more significant than the 21% rise that Ofwat first proposed in July last year. However, the regulator says the level is "fair" for current and future customers. Water UK, the trade body representing water firms, has defended the price hikes, stating they are essential to deliver "much-needed" investment across the sector. You can find out exactly how much your water bill will rise in April in this Mirror article here.

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