Average household bills are expected to rise by approximately £80 per year from April, a significantly smaller increase compared with the £660 jump experienced by many last year. However, this relief may be short-lived, as ongoing global tensions are already contributing to rising fuel prices, which could in turn increase the cost of energy, food and transport later in 2026.
To help households better understand the financial impact, Money Wellness has introduced an updated interactive Household Bills Calculator. The tool allows users to input their existing expenses, including energy, council tax, water, broadband, mobile services, TV licence and vehicle tax, before generating a personalised forecast of expected cost increases over the coming year. It aims to provide clearer budgeting insights and support forward financial planning.
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.
- 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.
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.
