Stories

Tue, 31 Mar 2026

Tue, 31 Mar 2026 From water to council tax: How the bill rises (and one drop) affect you

A string of bill increases have taken effect but minimum wage and benefit rises will help some to pay them.

* Energy bills have dropped by 7% between April and July, but prices will increase sharply in July due to the Iran war.
* Typical household energy bill will drop to £1,641 per year from April, but rise to £1,929 per year from July, an 18% increase.
* Council tax is rising by an average of 4.9% for households in England, with some councils allowed to implement bigger hikes.
* Average council tax for a Band D property in England will increase to £2,392 a year, up £111 on last year.
* Water bills have increased by £33 to £639 in England and Wales, and by £42 to £532 in Scotland.
* Broadband prices are rising, with typical annual increases of nearly £50 per year.
* Mobile phone providers tend to have mid-contract price rises written into contracts, leading to additional costs for billpayers.
* The cost of a TV licence has increased from £174.50 to £180 a year, and Standard Vehicle Excise Duty (VED) has increased from £195 to £200.
* Air Passenger Duty is increasing across most fare bands, with different amounts charged dependant on the distance of the flight. Income Tax and Benefits:
* The government has kept in place the freeze on tax thresholds on income tax, meaning more people start paying tax or move into higher tax brackets as wages rise.
* This policy raises additional revenue to pay for public services but is often called a stealth tax by economists.
* Many businesses are likely to pass higher wage costs onto customers due to rising living costs. Financial Support:
* The government has hinted that financial support may be available in the autumn, but it's too early to say exactly who would get help.