Energy bills
The annual energy bill for a typical household is expected to fall by £117 for a typical household from 1 April 2026 after regulator Ofgem cut its price cap by 7%.
This will bring the average annual bill to £1,641, down from £1,758 under the January to March cap.
Despite the slight drop in prices, costs still remain far higher than before the energy crisis, and campaigners warn the new level is still unaffordable for many. Even after April’s drop, the typical bill remains roughly a third higher than before Russia’s invasion of Ukraine spiked gas bills.
“The price cap announcement is genuinely good news for families who’ve been squeezed hard by energy bills for years now with well targeted support that helps poorer families with the greatest need,” Jonathan Marshall, principal economist at the Resolution Foundation, said at the time of the announcement.
“But bills remain far higher than they were before the energy crisis hit, and the relief we’re seeing today won’t last forever.”
Help is available for those who cannot afford their energy bills. Many energy companies offer support funds and grants. More information can be found here.
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Water bills
The average water and sewerage bill will increase by around £33 (5.4%) from 1 April 2026, which on average will push the typical annual water bill to £639.
Customers of United Utilities in the North West will face the largest rises, averaging £57. Southern Water customers will see bills rise by £55, followed by Hafren Dyfrdwy at £54 and Severn Trent Water at £52. The most expensive average bill will be paid by Southern Water customers, at a typical annual rate of £759.
The increases in England and Wales follow the announcement that water bills in Scotland’s publicly run system will rise by an average of 8.7% or £42 a year, taking the typical annual bill to £532.
Council tax
Council tax is set to rise by an average 5% in April – the maximum rise allowed.
According to Local Government Chronicle, over three quarters of councils across England plan to raise council tax by the maximum allowed without a referendum. The outlet sampled 126 authorities and found 77% planned to raise council by the maximum, with 6% having permission to raise it above the limit.
The average band D rate will go up from £2,280 to £2,394 if increased at the maximum 4.99% rate.
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In London, nearly every borough is raising residents’ council tax by the maximum 4.99% from 6 April 2026. The majority of London boroughs are raising council tax by 4.99%, with the exception of Wandsworth and Westminster, which will both be making only 2% rises.
There are steps you can take if you’re worried about being able to afford council tax. Many qualify for exemptions, while there are a huge range of grants available. More details of the support on offer can be found here.
Universal credit
Universal credit will increase by 6.2% from April 1 with the standard universal credit allowance set to rise from £316.98 to £338.58 per month for single people under 25, and £497.55 to £528.34 per month for couples under 25.
For those on universal credit with children, rates will increase from £339.00 per month for first children
born prior to 6 April 2017 to £351.88. For first children born on or after 6 April 2017, and second or subsequent children, rates will go up from £292.81 per month to £303.94.
However, there will also be cuts to the health element of universal credit.
The limited capability for work and work-related activity element of universal credit, which is currently worth more than £400 a month, will be slashed in half for new claimants.
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New claimants under the age of 22 will no longer be eligible for the health element at all.
National minimum wage
Workers aged 21 and over on the national minimum wage will see their hourly pay rise from £12.21 to £12.71 from 1 April 2026.
For those aged 18 to 20, the national minimum wage will increase from £10 per hour to £10.85.
TV licence
TV licences will also be increasing from 1 April, with a colour TV licence rising from £174.50 per year to £180 per year. A black-and-white licence will rise from £58.50 to £60.50 this April.
The rise is slightly more than the £5 increase in 2025, and is calculated using an annual inflation rate.
Last year, the government expanded the “simple payment plan”, which helps households with financial difficulties pay for the license. Under this scheme, if a payment is missed it can be spread over the rest of the billing period rather than customers having to pay double the next month.
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Statutory sick pay
Statutory sick pay will increase from £118.75 a week to £123.25 a week, but you must earn £125 per week before tax to qualify.
State pension
From April, the state pension will increase by around £574.60 a year thanks to the triple lock.
This picks the highest out of wage growth, inflation, or 2.5%. This year, pensioners will see an increase from £230.25 per week to £241.30 per week, bringing the full state pension to £12,547.60 a year.
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