A wave of price hikes will hit household bills from April (Image: Getty)
The month of April will usher in a wealth of money changes that will significantly impact household budgets. Changes to energy, broadband, mobile, water and Council Tax bills will all take effect in April, which will mean higher costs in many cases. There is some good news for households in regards to energy bills, as Ofgem’s price cap will fall by 7% from April 1 from £1,758 per year to £1,641 for the average home on a standard variable tariff using both electricity and gas. This gives a saving of £117, or around £10 per month on average.
The April price cap will also be the first to reflect Chancellor Rachel Reeves’ promise that £150 would be cut from the average household bill. This is being achieved by shifting 75% of the Renewables Obligation (RO) costs from household energy bills into general taxation and scrapping the Energy Company Obligation (Eco) scheme introduced by the Tories. The reduction will mainly translate through to customer bills by a cut to households’ electricity unit rates, rather than a one-off amount.
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But despite falling energy costs next month, the reprise is expected to be short lived as bills are forecast to rise by £332 per year from July, affecting millions of households on the standard variable rate.
Elsewhere, major broadband and mobile providers are hiking prices from April, which will see most customers face a monthly bill increase of around £1 to £4.
In England and Wales, water bills are rising by 5.4% in April, increasing the average household bill by £33 a year, and most local authorities in England are raising Council Tax bills by the maximum 4.99%.
The increase means the average Band D Council Tax in the 2026/27 tax year will be £2,392 – an increase of £111, or 4.9% on 2025/26, according to the Ministry of Housing, Communities & Local Government.
Ahead of these changes next month, these five simple steps households can take to help reduce these costs and save money heading into the new financial year.
Energy bills
While the energy cap will fall in April, energy bills are expected to rise by £332 from July so it is worth taking action now and finding a fixed deal to protect against future price hikes.
Price comparison and switching service Uswitch said: “If you’re on a “standard variable” or “default” energy deal, you should strongly consider switching to a fixed deal.
“Your rates are determined by the energy price cap, which is set at £1,758 per year for an average use household paying by Direct Debit.
“Wholesale prices are currently rising, so you should fix to lock in lower prices (remember, your actual savings will depend on the amount of energy you use).”
Broadband bills
Broadband customers who are out of contract can carry out a broadband comparison to find a cheaper deal, which could potentially save £100s per year.
James McCaffrey, spokesperson at TotallyMoney, said: “One in four broadband customers are out of contract, paying up to £9 per month more than those in contract. To add salt to the wound, BT, EE, Plusnet and Virgin Media are all hiking broadband prices by £4 a month, Sky by £3, and Vodafone by £3.50 – adding nearly £50 more per year to bills.
“If you’re out of contract, then you’re free to leave and find a better deal. If you want to stay with your current provider, pick up your phone and haggle for a new deal. They won’t want to lose you to a competitor, and should offer you a better deal.”
Mobile bills
Mobile customers can check now if they’re still in contact by texting ‘INFO’ to 85070 to receive a message telling you if you’re free to leave, allowing you to switch to a cheaper plan.
MoneySavingExpert (MSE) said: “Fourteen million are out of contract on their mobile plan. To find out if you are, text INFO for free to 85075.
“If you’re happy with your phone, you could save by switching Sim (the chip in your phone that dictates your data, calls and texts allowance).
“You’ll usually have to sign up to a contract – typically 12 months, but some are on a 30-day basis. The best deals are usually for new customers.”
Unlike mobile, broadband and energy providers, it’s not possible to shop around for a cheaper water supplier, as this is based on your postcode, but there are things you can do in your home to cut costs.
This includes installing a smart meter to monitor your usage, checking your eligibility for social tariffs, and taking shorter showers.
Greg Marsh, household finance expert and CEO of Nous.co., said: “You might think, well, I don’t want them to know exactly how much I’m using. But if your house has more bedrooms than people, get a smart meter – you’ll probably save money.
“The other benefit of having a smart meter is you’ll know you’re paying for exactly what you consume, which in turn means if you do want to cut down your water bills by, for instance, having smaller baths or being thoughtful about what settings you have for your washing machine, then it means you’ll benefit from those economies.”
Council Tax
Ahead of Council Tax rises in April, it’s worth checking if you qualify for household discounts or a Council Tax Reduction, as these can reduce your bill by up to 100% in some cases.
Mr McCaffery added: “If you live alone, you’re entitled to a 25% discount, while full-time students can be fully exempt. Those on low incomes can apply for a reduction of up to 100%, and carers and people with disabilities may also qualify. Discounts aren’t applied automatically, so you need to contact your council to claim.”
“Household bills will keep rising this year, starting in April – so it’s a good time to check your contracts, see if you’re able to lock in better deals, and to see if you’re eligible for extra support.”
