Household expenses are forecast to increase by around £80 annually from April, considerably less than the £660 rise seen by many consumers last year. Despite this, the reduction in pressure may be temporary, as global instability is already influencing fuel prices, potentially leading to higher costs for energy, food and transport later in 2026.
In response, Money Wellness has launched an enhanced version of its interactive Household Bills Calculator. By entering details such as energy costs, council tax, water charges, broadband, mobile phone bills, TV licence and car tax, users can receive a tailored projection of how their expenses may change over the next year. The tool is designed to help households manage their finances more effectively and prepare for future increases.
The free tool can be accessed here: https://www.moneywellness.com/cost-of-living-calculator
Bill increases this April
Several essential costs are increasing from 1 April, including council tax, water bills and telecoms contracts. But these are partly offset by a fall in the energy price cap, reducing the typical dual-fuel bill to around £1,641 a year.
The main changes include:
- Council tax: Most councils are increasing bills by around 4.99%, adding roughly £108 a year for a typical Band D household
- Water bills: Average increase of £33 a year
- Broadband and mobile: Bills rising by around £42 a year for many customers
- TV licence: Increasing by £5.50 to £180
- Car tax: Standard rate rising by £5 to £200
- Energy: Typical bills falling by around £117, helping offset other increases
Overall, households will see bills rise by around £80 a year on average.
Clouds on the horizon
Money Wellness warns that while April’s increases are relatively modest compared with previous years, rising global tensions could push household costs higher later this year.
Oil prices have already surged following the escalation of the conflict in the Middle East. This has contributed to a 5p-per-litre increase in petrol prices, adding roughly £2.50 to the cost of filling a typical 50-litre tank.
Sebrina McCullough, external director at Money Wellness, said: “Compared with the huge bill increases households have faced in recent years, this April looks relatively manageable. But the cost-of-living pressure is far from over. Global tensions are already pushing up fuel prices, and that can quickly feed through into energy bills, food and transport costs.
“Many households are still financially fragile, so even relatively small increases can make a real difference. Our Household Bills Calculator helps people see exactly how these changes could affect their budget, allowing them to plan ahead and avoid surprises.”
