UK households faced a brutal £1,254 annual increase in essential bills this year as "Awful April" price hikes combined with soaring energy costs. Energy debt has hit an eight-year high of £780 million, with more than two million homes now saying they will not turn on their heating this winter.
The energy crisis has intensified despite relatively stable prices. The Ofgem energy price cap started the year at £1,738 for an average household, climbed to £1,755, and will hit £1,758 on January 1. The strain is showing: a fifth more homes than last year plan to go without heating.
Council tax rose by 5% in most English areas, while water bills jumped by an average of £123 per year – the largest increase since the industry was privatised in 1989. Birmingham, Bradford, Newham, Somerset, Trafford, and Windsor & Maidenhead received special permission to raise council tax above the standard 5% cap.
TV licences increased by £5, standard car tax rose by £5, and electric vehicles lost their exemption from car tax. Broadband and mobile bills also climbed sharply, with average annual increases of £21.99 and £15.90 respectively.
Experts warn of worsening crisis
Sabrina Hoque, spokeswoman for comparison site Uswitch, said: «Pressure points have been widespread. Energy debt hit an eight-year high in October, with households now owing £780 million to their suppliers. The strain is so severe that more than two million homes say they won't turn on their heating this winter – a fifth higher than last year.»
She added: «Similarly, mobile and broadband bills have been a key area of concern, with average annual jumps of £21.99 for broadband and £15.90 for mobile. In the last few months, we have seen nearly every major provider announce updated price rise rates for new customers, with monthly increases going up to as much as £4.»
Hoque advised out-of-contract customers to act: «For many broadband and mobile customers, bills are set to rise again in April 2026. If you are out of contract or your deal is set to expire ahead of April, it is time to take action. Out-of-contract rates tend to be more expensive, and you could save an average of £203 a year by switching to a new broadband deal.»
Call for government action
Dame Clare Moriarty, chief executive of Citizens Advice, warned that four million people now live in a negative budget, unable to afford essentials like energy bills, rent, or food. She said: «The cost-of-living crisis is not over. Stubbornly high bills and increasing living costs mean four million people are in a negative budget, meaning they can't afford essentials like energy bills, rent, or food.»
She continued: «Our advisers see the impact of these punishingly high costs every day. People come to us feeling like they're constantly fighting to stay afloat but, despite their best efforts, are sinking further into the red.»
Moriarty called for targeted government support: «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 Allowance to help those struggling with their rent and improve bill support to ensure sky-high utility costs, like energy and water, don't continue to stretch household budgets beyond breaking point.»
Note: This article was created with Artificial Intelligence (AI).
