UK household bills to rise GBP £6.85 billion a year

UK household bills will rise by a collective £6.85 billion a year from April, according to Uswitch. The comparison site estimates the average household will pay an extra £214 a year across several essential services.

The increases cover council tax, water, the TV licence, mobile contracts and broadband bills. Some of the rise can be avoided by consumers who are out of contract on mobile and broadband deals and switch before the new prices take effect.

Uswitch's figures show broadband customers face an average annual increase of £39.60, while mobile customers face an average rise of £27.60. Water bills are set to go up by an average of £32.40 a year, the TV licence will rise by £5.50 annually, and council tax in England can increase by up to 5%.

The analysis also points to pressure on household finances beyond the headline total. It found that 62% of people expecting their bills to rise fear they cannot cover the higher costs on their current income, with wages failing to keep pace.

Switching window

Eight million broadband customers and 14 million mobile customers are out of contract and can avoid the coming telecoms increases by changing provider without paying a penalty, Uswitch said. Households that switch both services could save more than £600 a year.

The figures come as providers move to a pricing model in which annual increases are shown in pounds and pence rather than linked to inflation formulas. Uswitch said the change follows Ofcom rules introduced in January 2025 requiring providers to display price rises upfront in cash terms at the point of sale.

Although the change is intended to make pricing clearer, the figures suggest some fixed rises are above the current inflation rate. For some customers, broadband increases could reach £4 a month, or £48 a year, while mobile rises could reach £2.50 a month, or £30 a year.

Household strain

The data adds to a broader picture of pressure on household budgets as unavoidable charges rise at the same time. Council tax and water charges are not generally open to the same switching options available in telecoms, leaving consumers with fewer ways to reduce the impact.

That makes mobile and broadband some of the few areas where households may still be able to act quickly. Out-of-contract customers are typically free to move to another provider or package, and comparison sites have increasingly focused on that group as fixed annual price rises become more common.

Uswitch presented the coming increases as part of a wider jump in living costs arriving at once. Its estimate of a £214 average annual increase per household reflects the combined effect of the higher charges listed, rather than a change in any single bill.

The scale of the projected rise shows how even relatively small increases can add up when they hit several services at the same time. A rise of £39.60 on broadband and £27.60 on mobile may appear manageable in isolation, but combined with higher water bills, the TV licence and council tax, the total becomes harder for lower-income households to absorb.

Uswitch's figures do not set out regional differences beyond noting that council tax in England can rise by up to 5%. Water charges also vary by provider and area, meaning some households will face a larger increase than the average quoted.

Telecoms focus

The telecoms element stands out because it affects a large base of customers and offers an immediate route to mitigation. Millions of users remain on expired contracts and often continue paying more than new customers for similar services, making them especially exposed when annual price rises are applied.

This has become a more prominent issue as telecoms companies revise how they communicate annual increases. Showing rises in pounds and pence offers customers more certainty about future bills, but the size of those fixed increases remains under scrutiny when inflation falls below the planned increase.

Uswitch said eight million broadband and 14 million mobile customers can avoid the coming price rises if they act before the increases take effect.