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What's Changing in April 2026 — Full List of UK Bill Changes

What's Changing in April 2026 — Full List of UK Bill Changes

April 2026 brings the biggest set of household bill changes in years. Energy falls, but council tax, water, broadband and more are rising. Here's every change, the exact numbers, and what to do about each one.

Chandraketu Tripathi profile image
by Chandraketu Tripathi
What's Changing in April 2026 — Full List of UK Bill Changes | Kael Tripton
Finance Cost of Living By Chandraketu Tripathi 24 March 2026 🕑 10 min read

What's Changing in April 2026 — Full List of UK Bill Changes

April 2026 brings the biggest set of simultaneous household bill changes in years. Energy bills are falling — but council tax, water, broadband, TV licence and car tax are all rising. Here is every change, the exact figures, and what you can do about each one.

Updated March 24, 2026: All figures in this article are confirmed from official sources — Ofgem, HMRC, Water UK, and local government announcements. April 1, 2026 is one week away. Several changes take effect from that date.

April 2026 at a Glance

Energy bills
↓ £117
Falls to £1,641/year
Council tax
↑ 4.99%
Band D up to £2,394
Water bills
↑ 5.4%
Average £639/year
TV licence
↑ £5.50
£174.50 → £180
Car tax (VED)
↑ £5
£195 → £200/year
Minimum wage
↑ £0.50
£12.21 → £12.71/hr

April marks the start of a new UK financial year and the annual round of price changes that come with it. This year has been dubbed "Awful April" by consumer groups — not because every bill is rising, but because the number of simultaneous changes happening at once makes it harder than ever for households to track what they owe and plan their budgets accordingly.

The good news: energy bills are falling for the first time in years. The less good news: council tax, water, broadband, TV licence and car tax are all rising at the same time — and the energy saving is partially offset by the other increases for most households.

1. Energy Bills — Falls £117 from April 1 ↓

Energy (Ofgem price cap) ↓ Falling

£1,641/year down from £1,758 — saving £117
The Ofgem energy price cap for Q2 2026 (April to June) falls to £1,641 per year for a typical household — a reduction of £117 from the Q1 cap of £1,758. This is the first significant fall in the cap in several years. The reduction is largely driven by lower wholesale gas prices and government policy changes that have removed some environmental scheme costs from bills.

Important caveat: The price cap only directly sets unit rates for households on standard variable tariffs. However, all households — including those on fixed deals — should see some savings from April due to the removal of certain policy cost charges from bills.

Watch out for July: Analysts at KPMG and the Resolution Foundation warn that rising global energy prices driven by Middle East tensions could push the July 2026 cap higher — potentially reversing some of April's saving. The current relief may be temporary.
Action: Don't rush to fix your energy tariff just because prices have fallen. If you are on a standard variable tariff, compare fixed deals now — but check the small print. A fixed deal signed during a price fall could lock you in at rates that look expensive if the cap falls further.

2. Council Tax — Up 4.99% for Most Households ↑

Council Tax ↑ Rising

Up 4.99% Band D rises from £2,280 to £2,394
More than three quarters of councils in England are applying the maximum permitted 4.99% increase from April 2026. This comprises a 2.99% rise for general services and a 2% adult social care precept. For a Band D property, this takes the average annual bill from £2,280 to approximately £2,394 — an increase of £114 per year or about £9.50 per month.

In London, nearly every borough is raising council tax by the maximum 4.99%. Some councils have been granted permission to exceed this limit due to exceptional financial pressures — Birmingham residents have seen rises exceeding 17% over two years.

Scotland, Wales and Northern Ireland set their own council tax rates independently — your increase may differ.
Action: Check if you qualify for a discount. Single occupant households get 25% off. Students, people with severe mental impairment, and certain other groups may qualify for reductions or exemptions. Ask your council to spread payments over 12 months instead of 10 to reduce the monthly amount.
Council tax bandTypical 2025/26Typical 2026/27 (+4.99%)Annual increase
Band A£1,520£1,596+£76
Band B£1,773£1,862+£89
Band C£2,027£2,128+£101
Band D£2,280£2,394+£114
Band E£2,787£2,926+£139
Band F£3,293£3,457+£164
Band G£3,800£3,990+£190
Band H£4,560£4,787+£227

3. Water Bills — Up 5.4% Average ↑

Water & Sewerage Bills ↑ Rising

+5.4% average typical bill rises from £606 to £639/year
Average household water and sewerage bills in England and Wales are rising by 5.4% from April 1, 2026 — adding approximately £33 to the typical annual bill and bringing the average to £639 per year. This is the second year of a record £104 billion investment programme running to 2030, aimed at reducing sewage spills, upgrading ageing pipes and improving water resilience.

The rise is not uniform. Some areas face significantly larger increases:
  • United Utilities (North West) — average rise of £57
  • Southern Water — average rise of £55, highest typical bill at £759/year
  • Hafren Dyfrdwy — average rise of £54
  • Severn Trent Water — average rise of £52
  • Scotland — average rise of £42 (8.7%), typical bill £532/year
Action: If you're struggling, contact your water company — all offer social tariffs that can reduce bills by up to 40% for eligible households. Over 2.5 million households will receive help in 2026/27. Installing a water meter can also reduce bills if your household uses less water than average.

4. Broadband — Mid-Contract Price Rises ↑

Broadband & Mobile Bills ↑ Rising for many

Varies by provider typically £2–5/month extra
Millions of broadband and mobile customers are seeing mid-contract price rises from April 2026. Unlike the other increases on this list, the amount varies significantly depending on your provider, when you signed your contract, and what price rise terms were written into it.

Sky Broadband customers on contracts signed before 2024 that allow CPI-linked rises are among those facing increases. Sky customers facing a price rise also have the right to exit their contract without penalty. If you are out of contract, you have the most power — you can switch to a new provider immediately and typically save money.
Action: Check whether you are out of contract — millions of UK households are and don't know it. If you are out of contract you can switch immediately with no exit fee and likely secure a better rate. Compare deals at our broadband comparison guide.

5. TV Licence — Up from £174.50 to £180 ↑

BBC TV Licence ↑ Rising

£174.50 → £180 increase of £5.50/year
The colour TV licence fee rises from £174.50 to £180 from April 1, 2026 — an increase of £5.50 per year. A black-and-white licence rises from £58.50 to £60.50. The rise is calculated using the annual inflation rate.

You need a TV licence if you watch live television on any channel, use BBC iPlayer, or watch live TV on any platform or device. You do not need a licence if you only watch on-demand content from non-BBC services such as Netflix, Disney+ or Amazon Prime.
Action: If you are aged 75 or over and receive Pension Credit, you qualify for a free TV licence — this covers all residents at the same address. Check eligibility at the TV Licensing website if you haven't already applied.

6. Car Tax (VED) — Up from £195 to £200 ↑

Vehicle Excise Duty (Car Tax) ↑ Rising

£195 → £200 standard rate for post-April 2017 vehicles
Standard Vehicle Excise Duty rises in line with inflation from April 1, 2026. The flat annual rate for most cars registered after April 2017 rises from £195 to £200 — affecting all fuel types including electric vehicles, which lost their tax-free status in April 2025.

Cars with a list price above £40,000 must also pay a £440 annual luxury supplement for five years — taking the total to £640. Following the 2025 Autumn Budget, the threshold for electric vehicles was raised to £50,000, reducing the number of EV owners affected by this supplement.
Action: Pay annually rather than monthly — monthly direct debit adds a 5% surcharge. If you are renewing soon, set up a reminder to pay the full year upfront.

7. National Minimum Wage — Up to £12.71/hr ↓

National Living Wage ↑ Good news for workers

£12.21 → £12.71/hr for workers aged 21+
The National Living Wage rises from £12.21 to £12.71 per hour from April 1, 2026 for workers aged 21 and over — an increase of 50p per hour or approximately £1,040 per year for a full-time worker.

18–20 year olds: Minimum wage rises from £10.00 to £10.85 per hour.
16–17 year olds and apprentices: Rises from £6.40 to £7.55 per hour.
Action: Employers must update payroll to reflect the new rates from April 1. Failure to pay the correct minimum wage is a criminal offence and HMRC actively investigates complaints. If you believe you're being underpaid, report it to HMRC via gov.uk.

8. Universal Credit — Up 6.2% ↓

Universal Credit ↑ Good news for claimants

+6.2% standard allowance rises from £316.98 to £338.58/month
Universal credit standard allowances rise by 6.2% from April 1, 2026:

  • Single under 25: £316.98 → £338.58/month
  • Single 25+: £400.14 → £425.44/month
  • Couple under 25: £497.55 → £528.34/month
  • Couple 25+: £628.10 → £667.44/month
Action: No action required — the increase is applied automatically. If you are not claiming universal credit but think you may be eligible, use the government's benefits calculator at gov.uk to check entitlement.

9. Making Tax Digital — Sole Traders Must Act Now ↑

Urgent — April 2026 deadline: Making Tax Digital for Income Tax Self Assessment (MTD ITSA) comes into force from April 6, 2026 for sole traders and landlords with gross income above £50,000. If you are in this bracket and still using spreadsheets, you need to switch to HMRC-approved software immediately. See our full guide to MTD-compliant accounting software.

MTD ITSA replaces the annual Self Assessment return with four quarterly digital updates plus a final declaration. Submissions must come directly from HMRC-approved software — manually compiled spreadsheets are not compliant. Non-compliance attracts penalty points under HMRC's new points-based penalty system.

MTD ITSA rollout timeline: April 2026 — £50,000+ earners. April 2027 — £30,000+ earners. April 2028 — £20,000+ earners.

What to Do — April 2026 Action Plan

With so many changes happening simultaneously, here is a prioritised action list for April 2026:

This week (before April 1)

  • Check if you are out of your broadband contract — if yes, compare deals and switch to avoid the price rise
  • Sole traders earning £50k+ — switch to MTD-compliant software before April 6
  • Check council tax bill — verify you are on the right band and receiving any discounts you qualify for
  • Don't rush to fix your energy tariff — the price cap has fallen but July may see another change

After April 1

  • Water bill — if struggling, contact your water company about social tariffs (up to 40% off)
  • TV licence — if aged 75+ receiving Pension Credit, check if you qualify for a free licence
  • Car tax — pay annually not monthly to avoid the 5% surcharge
  • Universal credit — if not claiming but potentially eligible, use gov.uk benefits calculator

Frequently Asked Questions

Are bills going up or down in April 2026?

It's mixed. Energy bills fall by £117/year from April 1 following the Ofgem price cap reduction to £1,641. However council tax rises up to 4.99%, water bills by 5.4%, TV licence from £174.50 to £180, and car tax from £195 to £200. Many broadband customers are also seeing mid-contract price rises. Most households will find the rises outweigh the energy saving overall.

How much is council tax going up in April 2026?

Most councils in England are applying the maximum 4.99% increase — a 2.99% rise for general services plus a 2% adult social care precept. For a Band D property, this takes the average annual bill from £2,280 to approximately £2,394. Your exact amount depends on your local council and property band.

What is the energy price cap from April 2026?

The Ofgem energy price cap for Q2 2026 (April to June) is £1,641 per year for a typical household — down £117 from £1,758. This applies to standard variable tariff customers. All households should see some saving from April due to government policy cost changes, even those on fixed deals.

What is the minimum wage from April 2026?

The National Living Wage rises to £12.71/hour for workers aged 21+ from April 1, 2026 — up from £12.21. Workers aged 18–20 see their minimum wage rise from £10.00 to £10.85 per hour.

Is universal credit going up in April 2026?

Yes — universal credit standard allowances rise by 6.2% from April 1. Single people under 25 see their allowance rise from £316.98 to £338.58/month. The increase is applied automatically — no action required by claimants.

Summary — April 2026 Bill Changes

↓ FallingEnergy bills — down £117/year to £1,641. First significant fall in years. But July cap could reverse this.
↑ RisingCouncil tax — up 4.99% for most. Band D rises to £2,394/year (+£114). Check discounts you qualify for.
↑ RisingWater bills — up 5.4% average. Typical bill £639/year. Some areas seeing 8–13% rises. Social tariffs available.
↑ RisingBroadband — mid-contract rises for millions. Check if you're out of contract — you may be able to switch and save.
↑ RisingTV licence — £174.50 to £180. Small rise. Over-75s on Pension Credit may qualify for free licence.
↑ RisingCar tax — £195 to £200 standard rate. Pay annually not monthly to avoid the 5% surcharge.
↓ GoodMinimum wage — £12.21 to £12.71/hr for over-21s. Full-time workers earn ~£1,040 more per year.
↓ GoodUniversal credit — up 6.2%. Applied automatically from April 1. No action needed by claimants.

Related Articles

Sources: Ofgem energy price cap announcement Q2 2026 | Water UK average bill data 2026/27 | Local Government Chronicle council tax data | HMRC National Living Wage rates April 2026 | DWP Universal Credit rates April 2026 | TV Licensing fee schedule 2026 | DVLA Vehicle Excise Duty rates 2026.

Last updated: 24 March 2026  |  Author: Chandraketu Tripathi  |  Category: Finance

Chandraketu Tripathi profile image
by Chandraketu Tripathi

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