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Households suffer year of pain from rising bills across the board

KANIKA SINGH RATHORE, 28/12/202528/12/2025

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It’s been a miserable year for families, with prices rising across the board from energy to council tax, leaving many struggling to balance their budgets.

According to comparison website Uswitch, so-called “terrible April” price rises coupled with high energy costs have left the average household facing a rise of £1,254 a year in basic bills.

Most areas in England Council tax has risen by 5% (the maximum amount allowed), with some municipalities including Birmingham, Bradford, Newham, Somerset, Trafford and Windsor and Maidenhead granted special permission to increase rates at higher rates.

water bill That’s an average increase of £123 a year – the biggest increase since the sector was privatized in 1989.

broadband Phone bills have also risen, while the cost of a TV license and the standard rate of car tax have both increased by £5 – electric cars are no longer exempt.

Meanwhile, the Office for Gas and Electricity Market’s energy price cap – which sets household bills still on a standard variable tariff rather than an independently sought fixed deal – saw average household prices start the year at £1,738 and end the year at £1,755 before rising to £1,758 on January 1.

Uswitch spokesperson Sabrina Hoque said: “Pressure points are widespread. Energy debt hit an eight-year high in October and households now owe suppliers £780m. The pressure is so severe that more than two million households have said they will not turn on the heating this winter – a fifth more than last year.”

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“Similarly, mobile and broadband bills have been a key area of ​​concern, with average annual increases of £21.99 for broadband and £15.90 for mobile. Over the past few months we have seen almost all major providers announce the latest price increases for new customers, with increases of up to £4 per month.

“For many broadband and mobile customers, bills will rise again in April 2026. If your contract is due to expire or your agreement is due to expire before April, it’s time to take action. End-of-contract tariffs tend to be more expensive and you could save an average of £203 a year by switching to a new broadband agreement.”

Citizens Advice chief executive Ms Clare Moriarty said: “The cost of living crisis is not over yet. High bills and increasing living costs mean four million people are on a negative budget, meaning they cannot afford essentials such as energy bills, rent or food.

“Our advisors see the impact of these high costs every day. people Coming to us, it felt like they had been struggling to stay afloat, but despite their best efforts, their losses were worsening.

“Everyone should be able to afford essentials, which is why more targeted support is vital. We hope government Increase local housing subsidies to help those struggling with rent, and improve bill support to ensure sky-high utility costs such as energy and water don’t continue to stretch household budgets beyond their limits. “

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