Millions of households will see the cost of everything from water and council tax to road tax and air passenger duty rise from April
Cost of living clobbered households will be hit with a near £7billion a year surge in essential bills a week from today.
The average family faces a £214 annual jump for water, council tax, broadband and mobile bills, and a TV licence. But, as the Mirror highlights, many other costs are also set to rise in what has been dubbed “awful April”.
It could not come at a worse time given the impact of “Trumpflation” on many families. Drivers have already reeling from pain at the pumps, while those taking out a new home loan or remortgaging have seen costs spiral.
One silver lining is energy bills for tens of millions of customers will actually fall next month, although that is before a possible spike in July, if the US and Israel war with Iran drags on. Offsetting some of the pain are increases in benefits and a welcome freeze in rail fares.
Price comparison website Uswitch.com says the combined impact of increases in water, council tax, broadband and mobile bills, and a TV licence will add £6.85billion a year to outgoings. While bills are rising, many workers say wages are not keeping pace. According to Uswitch, 17% of Brits say they have had their wages frozen for 2026.
Water
Water bills in England and Wales will rise by an average of 5.4% from April, equating to an increase of £33 a year for the typical household. This will bring the average yearly bill to £639, according to Water UK. Water companies say higher bills are needed to make up for years of underinvestment, but it comes as public anger about the amount of sewage being released into waterways continues to grow.
Council tax
Council tax letters have started landing on doormats across the country in recent days – telling residents how much their bills are going up from April. A clear majority of cash-strapped local authorities – as has been the case in recent years – are planning to hike the bill by the maximum amount. This stands at 4.99% without the need for town halls to trigger a referendum of residents. In some areas, the tax will rise by almost 9% The average Band D council tax set by local authorities in England for 2025/26 will be £2,280, an increase of £109.
Broadband and mobile
Most mobile and broadband providers are hiking bills between £1 to £4 a month from April, adding up to £48 a year to bills. Telecom firms have been banned from linking mid-contract price rises to inflation – instead, customers must be told in “pounds and pence” how much their plan will increase by.
TV licence
The TV licence fee is rising from £174.50 to £180 from April. You need a TV licence to watch or record live TV, or to watch anything on BBC iPlayer. For other streaming services, you do not need a TV licence if you only watch shows that are not being broadcast live.
Car tax
Millions of drivers will pay more in car tax from April. The standard road tax rate for vehicles that were registered from April 2017 is rising from £195 to £200. There are different car tax rates for vehicles that were registered before April 2017 and these are also going up. The first-year “showroom” tax is also increasing from April.
Energy
Amid all the talk of a potential jump in energy bills because of the Middle East conflict, it is worth remembering gas and electricity bills for most households will actually fall from April. Regulator Ofgem sets its price cap every three months, and the latest was decided before the Iran war erupted and wholesale oil and gas costs soared.
The cap – a limit on the unit rate of energy rather than overall bills – will drop by 7% to an average £1,641 a year. However, that annual figure is somewhat meaningless as the cap will be updated in July, and all the signs are it will rise sharply, unless there is a swift resolution to the conflict. Estimates vary but industry experts Cornwall Insight says the cap could surge by more than £330 a year to an annual £1,973 in July.
Dental fees
NHS dental charges in England are rising from April, piling more pressure on those struggling with the cost-of-living crisis. The 1.7% increase means the cost of a routine check-up and others covered by Band 1 care will go from £27.40 to £27.90. Back in 2010 it was £16.50. Band 2 care, which includes fillings, tooth extraction or root canal treatment, will cost £76.60, up from £75.30. And the Band 3 rise means the cost of dentures will increase from £326.70 to £332.10.
Stamps
Royal Mail will hike stamp prices yet again from April 7. The cost of a first class stamp will increase by 10p to £1.80, while a second class stamp will go up by 4p to 91p. The price of a first class stamp was just 64p in 2016 – meaning it will have increased by 181% in the past decade.
Royal Mail said the increases are down to the rising cost of delivery as letter volumes fell and the number of addresses increased. But it comes as the postal service is under increasing scrutiny for not meeting its delivery targets. Consumer champion Martin Lewis urged people to “stock up” on stamps now ahead of the price rise.
Air passenger duty
If the threat of higher air fares on the back of the Iran war were not bad enough, a tax slapped on all flights will jump by an inflation-busting 15% from April 1. Air passenger duty is typically included in the ticket price, with rates – split into four bands – based on distance and class of travel.
From next month, passengers taking an economy domestic flight within the UK will pay £1 more, at £8 per leg. Flyers will pay £2 more for economy short-haul flights, with the rate increasing from £13 to £15. The duty on an economy medium-haul flight – 2,001 to 5,500 miles – will rise by £12 to £102, and by £12 to £106 on a long-haul flight.
The add-on is much higher still for those travelling premium class, rising to £32 for short-haul, £244 for medium-haul, and £253 for long-haul. At the extreme, if you are rich enough to take a private jet – or any flight with fewer than 19 seats – the duty tops out at £1,141, after a £468 increase.
Benefits and state pension
Welfare payments including Child Benefit and Personal Independence Allowance will rise by 3.8% from April, based on the September rate of inflation. The basic standard allowance for Universal Credit will rise by a higher 6.2% – but the health element for new claimants is being cut. Meanwhile, the state pension will increase by 4.8% under the triple lock promise. The full new state pension will be worth £241.30 a week.
Rail fares
The good news for many rail passengers is that regulated train fares have been frozen for the first time in 30 years. The hold – across England until next March – relates to those where pricing is set by government and not train companies. It includes standard class season tickets, anytime tickets and off-peak tickets, but does not automatically cover journeys that are entirely in Scotland or Wales. First class and standard premium tickets are not included, along with Hull Trains, Lumo, Grand Central, and Heathrow Express as they are independent operations without a government contract.
Minimum wage
Millions of low paid workers will get a boost with another increase in the minimum wage April 1. The rate for those aged 21 and over on the National Living Wage will increase from £12.21 an hour to £12.71. For those aged 18 to 20, the minimum wage will rise by 85p an hour to £10.85, and for under 18s an apprentices from £7.55 to £8 an hour.
