
By Clare Yates
6 min read
April is when household bills tend to shuffle around – and 2026 is no different.
With the new tax year starting in early April, several everyday costs are set to rise across the UK. But it’s not all bad news, as energy bills are heading in the opposite direction.
Here’s what it could mean for your monthly budget.
If you’re bracing for a higher Council Tax bill, you’re probably right.
Most councils in England can increase bills by up to 4.99% without holding a local referendum – and many appear set to go right up to that limit.
According to This Is Money, 119 out of 153 top-tier local authorities have either proposed or confirmed a 4.99% increase for 2026/27. Some councils are proposing even larger increases after securing permission to go above the usual cap.
In Shropshire and North Somerset, rises of 8.99% have been proposed or confirmed, while Worcestershire is planning an 8.98% increase. Trafford and Warrington are also considering rises of around 7.5%.
Final figures will vary depending on where you live. But for many households, April is likely to bring a noticeable jump in their annual bill.
Water bills are one of the clearest confirmed rises this April. According to the Yorkshire Post, customers in England and Wales are facing an average increase of around 5.4%. That works out at roughly £30–£35 extra a year for a typical household, although the exact figure will depend on your provider.
In Scotland, where water charges are collected alongside Council Tax, early indications suggest increases of around 8-9%. There are no separate domestic water charges in Northern Ireland.
For millions of households, spring also means broadband and mobile price rises landing at the same time.
Several major providers have already confirmed increases for March or April 2026, while others are expected to follow under annual review clauses written into contracts:
Three: Customers on some out-of-contract mobile and broadband plans have been told to expect rises from 1 April, with mobile bills increasing by up to £2.30 a month and some broadband plans up by £3.50.
Sky: From 1 April 2026, broadband prices for most customers are rising by £3 a month, with TV packages increasing by between £1 and £3. Home phones will rise by £1 a month.
Virgin Media: Customers who joined between 9 January and 2 October will see a £3.50 a month increase for their broadband, while those joining later will pay £4 extra.
BT and EE: Out-of-contract customers will see home broadband plans (including line) and EE mobile handset plans rise by £4 a month (£48 a year).
While not every customer will see a hike, those tied into contracts with inflation-linked or fixed annual increases are likely to notice their direct debits creeping up. If you’re out of contract, switching providers may be a way to avoid the increase altogether.
Vehicle Excise Duty (VED) usually increases each April, often in line with inflation. However, the official 2026 rates haven’t yet been confirmed by the Treasury or DVLA. According to the RAC:
Most drivers of newer cars can expect to pay around £200 a year, up from £195 in line with the Retail Price Index (RPI).
Vehicles originally priced over £40,000 (or £50,000 for electric cars) may also face the luxury car tax, which adds £425 to the annual bill. The exact cost depends on your car’s registration year, fuel type and tailpipe emissions.
Electric vehicles will no longer be exempt from VED, and from April 2026, EV drivers will pay the standard £200 flat rate.
The TV licence fee will edge up again from 1 April, rising by £5.50 to £180. The licence currently costs £174.50, following a £5 rise last year and a £10.50 jump in 2024,
The government confirmed the increase as part of its agreement that the charge will track inflation until 2027, a deal first set out in 2022.
Here’s the welcome surprise.
Energy bills will fall in April 2026, thanks to a change in the price cap. Ofgem has confirmed that dual-fuel households on a variable tariff paying by Direct Debit will see annual costs drop by an average of £117 to £1,641. That’s a drop of 6.7% and equates to roughly £10 a month.
The fall in energy bills is largely thanks to the government reducing some underlying costs, including household contributions to the Renewables Obligation. It also ended the Energy Company Obligation scheme. These savings are being factored into April’s price cap, meaning even households on fixed deals should see lower bills.
Standing Charges are also set to fall, from around £328 a year to £315, after the government shifted some costs from fixed charges onto energy unit rates. This change particularly helps households that use less energy, making bills fairer for low-use homes.
A cluster of price rises landing at the same time can make April feel financially heavy, even with energy bills moving in the right direction. A few practical steps can help soften the impact and give you a clearer sense of control.
Check your updated bills as soon as they arrive: Knowing the exact increase helps you plan rather than guess.
Review any contracts tied to inflation‑linked rises: If you’re out of contract, switching can often offset the rise entirely. You may be able to exit your contract early without penalty. As an example, Sky do this if you give notice within 30 days of being notified about the price rise.
Look at your direct debits: Small increases across several bills can add up. Adjusting payment dates or smoothing payments across the month can help with cash flow.
Use any price drops strategically: Use any price drops like the fall in energy bills to build a small buffer, if you can afford to. Once you know how much your bill is falling, set that amount aside in a savings account each month rather than letting it disappear into day‑to‑day spending. It could give you a small cushion to help cover other rising costs.
Check for local support schemes: Councils sometimes offer reductions or payment plans for Council Tax. Energy companies can offer support and information about hardship schemes and grants if you are struggling to pay your energy bill.
A short review now can make the April changes feel more manageable rather than like a sudden hit.
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