Millions of households across the UK are bracing for a fresh financial blow as the new year brings another increase in energy bills, with experts warning of 'severe' pressures on family budgets.
The Crushing Weight of Rising Bills
According to analysis from the comparison site Uswitch, the average household has been saddled with an extra £1,254 a year due to a barrage of bill increases throughout a bruising year. The so-called 'Awful April' rises, combined with persistently high energy prices, have piled pressure on already stretched finances.
Few essential costs have been spared. Council tax bills jumped by 5% in most parts of England – the legal maximum – with councils including Birmingham, Bradford, Newham, Somerset, Trafford and Windsor & Maidenhead granted special permission to charge even more.
Water bills experienced their largest rise since privatisation in 1989, increasing by an average of £123 a year. Meanwhile, broadband and mobile phone customers were hit with further price hikes, and the cost of a TV licence and standard car tax rate also rose by £5, with electric vehicles losing their long-standing exemption.
Energy Debt Hits an Eight-Year High
Energy bills have continued to cast a long shadow over household budgets. Ofgem’s price cap, which applies to homes on standard variable tariffs, began the year at £1,738 for a typical home and will end it at £1,755. It is set to rise again to £1,758 on January 1.
Uswitch spokeswoman Sabrina Hoque stated that households are being squeezed from all sides. "Pressure points have been widespread," she said. "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 highlighted that mobile and broadband bills have been a key concern, with average annual jumps of £21.99 for broadband and £15.90 for mobile. Hoque warned that for many, bills are set to rise again in April 2026, urging those out of contract to switch deals and save an average of £203 a year.
Charities Warn Crisis is 'Not Over'
The impact of these relentless increases is now being felt far beyond the margins. Dame Clare Moriarty, chief executive of Citizens Advice, emphasised: "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 explained. "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."
Citizens Advice is calling for better-targeted government support, including an increase to Local Housing Allowance and improved bill support to prevent sky-high utility costs from stretching household budgets to breaking point.
