This year has been miserable for households after widespread price rises in everything from energy to council taxes left many struggling to balance their budgets.
The so-called “horrible April” price rises, combined with high energy costs, saw the average household face an annual rise of £1,254 due to increases in essential bills, according to figures from comparison site Uswitch.
In most areas of England council tax bills rose by 5% (the maximum amount allowed) and some, including Birmingham, Bradford, Newham, Somerset, Trafford and Windsor & Maidenhead, were given special permission to rise even further.
Water bills have risen by an average of £123 a year, the biggest increase since the industry was privatized in 1989.
Broadband and phone bills have also risen, while the cost of a TV license and the standard rate of car tax have risen by £5, and electric vehicles are no longer exempt.
Meanwhile, Ofgem's energy price cap – which sets bills for households still on standard variable tariffs rather than independently sought fixed deals – started the year at £1,738 for the average household and will end it at £1,755 before rising to £1,758 on January 1.
Uswitch spokesperson Sabrina Hoque said: “The pressure points have been widespread. Energy debt hit an eight-year high in October, with households now owing £780m to their suppliers. The strain is so bad that more than two million households say they won't turn on the heating this winter, a fifth more than last year.”
“Similarly, mobile phone and broadband bills have been a key area of concern, with average annual increases of £21.99 for broadband and £15.90 for mobile. “In recent months, we have seen almost all the major providers announce updated price rise rates for new customers, with monthly increases of up to £4.
“For many broadband and mobile customers, bills will go up again in April 2026. If you are out of contract or your deal is due to expire before April, it's time to take action. No contract rates tend to be more expensive and you could save an average of £203 a year by switching to a new broadband deal.”
Citizens Advice chief executive Dame Clare Moriarty said: “The cost of living crisis is not over. Stubbornly high bills and rising costs of living mean four million people are on a negative budget, meaning they cannot afford essentials such as energy bills, rent or food.
“Our advisors see the impact of these extremely high costs every day. People come to us feeling that they are constantly struggling to stay afloat but, despite their best efforts, they are sinking deeper and deeper into the red.
“Everyone should be able to afford the essentials and that's why better targeted support is crucial. We want the Government to increase local housing benefit to help those struggling with rent and improve bill support to ensure the sky-high costs of public services, such as energy and water, do not continue to stretch household budgets beyond the limit.”
