Shop price inflation edges up as ‘storm clouds loom,’ BRC says

Hikes to council tax, water, broadband and mobile phone costs are threatening to stretch many households to breaking point, charities have warned.

Households are facing near across-the-board increases in their bills as yet another “awful April” takes effect.

While energy bills are falling – for the time being at least – hikes to council tax, water, broadband and mobile phone costs are threatening to stretch many households to breaking point, charities have warned.

Across England, the average Band D council tax in 2026/27 will be £2,392 – an increase of £111 or 4.9% on 2025-26, according to the Ministry of Housing, Communities & Local Government.

The figures include all additional charges, including adult social care, parish precepts and costs levied by police, fire and regional authorities where appropriate.

It is the fourth year in a row that the England-wide increase has averaged around 5%.

Household water bills across England and Wales are to rise by an average of 5.4%, equating to £33 a year for the average household.

There is significant regional variation in bill increases, with Severn Trent customers seeing a 10% increase, Sutton and East Surrey imposing an 11% increase, Bristol Water a 12% rise and Affinity Water (central region) customers warned they have a 13% jump coming.

Around 2.5 million households are eligible for social tariffs, with savings of around 40%.

A host of broadband providers are hiking prices by almost £50 per year, with one in four customers (28%) free to leave and already paying between £7 and £9 a month more than in-contract customers.

Totally Money said “millions” of people are out of contract with their mobile phone provider, and so also free to leave and find a better deal – with some SIM only deals available for less than £5 a month.

In a sliver of good news, the price most households pay for energy will fall by 7% from April 1, driven by promised Government cuts to bills.

Ofgem’s price cap will drop from the current £1,758 to £1,641 – a reduction of £117 or around £10 a month for the average household using both electricity and gas.

However, the reduction is lower than the average £150 cut to bills pledged by the Chancellor in November, when she moved 75% of the cost of the renewables obligation from household bills onto general taxation and scrapped the energy company obligation (Eco) scheme.

And of increasing concern is the amount energy bills could rise by from July as a result of the Middle East conflict, with latest predictions suggesting this could be by well over £300 a year.

In the meantime, consumer groups have urged households to send in meter readings ahead of April 1 to ensure their energy usage is billed at the lowest possible rate, and investigate fixed rate deals.

TotallyMoney spokesman James McCaffrey said: “With around 22 million households on their supplier’s standard variable rate, most are paying the maximum allowed by the regulator.

“Check your current contract, and if you haven’t switched in the past year, it’s likely you’ll be free to leave – and you could save up to £917.”

He added: “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.”

Citizens Advice chief executive Dame Clare Moriarty said: “Many households never saw the back of the last cost-of-living crisis, with millions of people still unable to make ends meet.

“With key bills such as council tax and water rising from April and global instability threatening further price shocks, we’re concerned about those who have exhausted every option to keep pace.

“So far this year, we’re helping someone every 30 seconds with crisis support – that’s food bank referrals and charitable grants. And average debt owed is hitting record levels.

“Those struggling most need a lifeline. This should include better targeted energy bill support for people on low incomes, help with soaring rent costs, and support to help people get out of debt.”