Awful April costs households £216 — but the worst is yet to come

The typical household will see essential bills rise by £216 a year from Wednesday, as experts warn that worse could be coming down the line as the economic fallout of conflict in the Middle East continues.

Dubbed “Awful April”, the start of the month sees millions of households spend more on council tax, water bills, broadband, entertainment and car tax. Collectively, the higher costs are expected to add £6.9 billion to the country’s household bills over the next 12 months.

It comes as the war in Iran threatens to trigger another energy crisis that could cause gas and electricity bills to soar this year. The consultancy Cornwall Insight expects the energy price cap to rise by £288 to £1,929 in July. Craig Lowrey from the company said: “A month into the Middle East conflict, energy markets are experiencing the kind of volatility not seen since 2022.”

Worries of higher inflation have already sparked panic in the mortgage market, with some 1,500 deals pulled in March. The average two-year fixed deal is now 5.84 per cent, up from 4.83 per cent at the beginning of March, according to the data firm MoneyFacts.

Drivers are already suffering on the forecourts, with petrol prices having risen to 153p a litre, according to the RAC, up from 133p a month ago.

In times of economic turmoil it is crucial for households to have a handle on their living costs. Here’s how bills are changing and what you can do about it.

Water bills

In England and Wales water bills are rising by an average of 5.4 per cent, adding £33 to the average annual bill, which will rise from £606 to £639, according to Water UK.

It is a much smaller leap than last year, when the average bill rose by 26 per cent. 

How much your bill will increase depends on location, with Severn Trent Water implementing a 9.8 per cent increase, equating to a £52 increase per year for its 4.7 million customers.

Thames Water’s 10 million customers will see the smallest rise, with the company implementing a 0.4 per cent rise, about £3 a year. This comes off the back of a 31 per cent hike last year. Bills in Scotland will rise an average of £42 a year, according to Scottish Water.

What can you do?

You can’t shop around for a cheaper water provider but households who think they are using less water than they are being billed for can explore switching to a water meter. This would bill based on actual consumption, not an estimate based on the size of the property.

This benefits homes with fewer residents than bedrooms. However, if your water consumption is higher than the regional average, you could face higher bills. Most properties are on a water meter, although not every home can have one installed for reasons such as a shared supply or poor infrastructure.

Phone and broadband contracts 

The average mobile customer will pay an extra £27.60 a year on their phone contracts, while broadband will cost £39.60 more a year on average, according to USwitch, a price comparison website.

These increases follow new Ofcom rules introduced in January 2025. While they improved transparency by requiring providers to display price rises upfront in “pounds and pence” rather than percentages, it has also resulted in many providers setting annual rises that outpace inflation.

BT and Virgin will increase broadband rates by £4 a month for contracts started after October 2025, while Vodafone and Three are implementing a £3.50 hike. Mobile providers are making increases of up to £2.50 a month.

What can you do?

Consumers can shop around. USwitch found that switching to a new broadband deal after your initial contract ends could save you £329 a year on average.

Some regional providers offer a fixed-price promise for the duration of a broadband contract, meaning users could avoid mid-deal increases next year.

Mobile users can often lower costs by haggling or switching from a 24-month handset contract to a SIM-only deal, which USwitch says can save £604 per year.

Council tax bills

The majority of residents in England and Wales will see their council tax increase by nearly 5 per cent this month. The average band D household in England will now pay £2,392 to their local authority each year, an increase of £111, according to government figures.

Of 384 authorities in England, 274 are applying the maximum 5 per cent charge, while 50 were close to it, and 21 made no change or decreased rates.

Some have permission to increase by more than 5 per cent, with North Somerset, Shropshire and Worcestershire residents facing 9 per cent increases.

Residents in Wales will also be hit by an average 4.9 per cent increase, adding £113 to the average bill, while Scottish council rates will rise between 4 and 10 per cent.

Some second homeowners face the steepest penalties. The Times found that 38 councils in England will implement a 100 per cent surcharge on these type of properties.

Scotland, which has no second home premium limit, will see Edinburgh and Highland increase the surcharge to 300 per cent on Wednesday.

What can you do?

Households should check their eligibility for council tax breaks, such as the single-person discount, student exemptions, or low-income and disabled residents’ support.

You can also request a band review from the Valuation Office Agency (VOA). Be warned, however, that it could also lead to you and your neighbours being placed in a higher band.

TV licence

You must pay for a TV licence if you watch any channel live or stream or download content on BBC iPlayer. This year it has risen by £5.50 to £180 a year.

What can you do?

If you are over 75 and get pension credit, you are eligible to get this for free.

Road taxes

While not included in USwitch’s figures, motorists face a £5 increase in the standard road tax rate for petrol, diesel and hybrid cars to £200.

What can you do?

Electric cars that are less than a year old are now subject to this fee. Owners of petrol cars valued at more than £40,000 when sold will also pay the expensive car supplement of £425 per year. The threshold is £50,000 for electric vehicles. Motorists who pay car tax upfront will escape a 5 per cent surcharge.

It’s not all bad news…

Some households will get an income boost next week.

Almost 7 million families will see the amount they receive in child benefit increase, with parents now set to receive £1,406 a year for their eldest child, up £52 from 2025-26. They will also be paid £930.80 a year for each additional child, up £33.80 compared to last year.

On April 6, pensioners will see the new state pension rise to £241.30 per week, a 4.8 per cent rise from £230.25. Those on the basic state pension will get £184.90 a week. Most other UK benefits, such as Universal Credit, will rise by 3.8 per cent, while the National Minimum Wage for those aged over 21 will rise by 4.1 per cent to £12.71 an hour.

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