UK households face GBP £6.85 billion bill rise in April

UK households face a collective GBP £6.85 billion increase in essential annual bills from April, with the average household expected to pay GBP £214 more, according to Uswitch analysis.

The figures cover higher charges for council tax, water, TV licences, broadband and mobile services. The biggest unavoidable increase in cash terms is council tax, while telecoms is one of the few areas where some consumers may still avoid the rises by switching provider.

Uswitch estimates average broadband bills will rise by GBP £39.60 a year and mobile bills by GBP £27.60. Water bills are set to increase by an average of GBP £32.40 a year, while the annual TV licence will rise by GBP £5.50.

In England, council tax bills could rise by up to 5%, adding an average of GBP £109 a year per household. Combined with increases in water and the TV licence, that would take the annual rise on those three items alone to GBP £146.90 for a typical household.

Telecoms window

The research found that eight million broadband customers and 14 million mobile customers are out of contract and able to switch without paying exit fees. Those households could avoid some of the April increases if they move before the higher charges take effect.

Consumers who switch broadband after their initial contract ends could save an average of GBP £329 a year, Uswitch estimated. Mobile users moving from an expired handset contract to a SIM-only deal could save an average of GBP £304 a year, taking the potential combined saving to more than GBP £600.

The changes come after Ofcom introduced rules requiring providers to show annual price rises in pounds and pence, rather than linking them to inflation formulas. That has made costs clearer for customers at the point of sale, but Uswitch said some fixed annual rises now exceed the current rate of inflation.

For some customers, broadband rises could reach GBP £4 a month and mobile increases GBP £2.50 a month. Over a year, that would amount to GBP £48 for broadband and GBP £30 for mobile.

Income squeeze

The figures come as many households say earnings are not keeping pace with higher bills. Survey data cited by Uswitch shows 62% of people expecting bill increases are concerned about whether they can cover the extra costs on their current income.

The same polling found 17% of Britons said their wages were frozen, while 4.6 million people either received or expected a pay rise of less than 2%. That suggests a widening gap between household outgoings and income growth as several annual bill increases hit at once.

The likely consumer response extends beyond telecoms switching. Among people expecting higher bills, 28% said they would cut back on the weekly grocery shop, 28% planned to spend less on socialising with friends and family, and 24% said they would limit home heating.

Advice to consumers

Households that do not want to switch immediately may still be able to negotiate with their provider. Uswitch advises broadband and mobile customers to check whether their contract has ended, assess whether they are paying for more data than they use, and consider lower-cost alternatives such as SIM-only plans.

It also highlighted newer broadband switching arrangements. Under the One Touch Switch process, the gaining provider manages the transfer, reducing the risk of customers being left without a connection during the move.

According to the analysis, some network operators and broadband providers are offering fixed-price deals that avoid near-term annual rises. Others are offering credits to offset exit fees for customers still within their minimum contract term.

Max Beckett, telecoms expert at Uswitch, said: "While the shift to 'pounds and pence' pricing has made mobile and broadband bills more transparent, these flat-rate increases are being used by some providers to push through price hikes that, for many customers, are a much higher proportion of the bill than the current rate of inflation.

"With many households seeing their income stall while outgoings increase, it is more important than ever to take action on the bills that you can reduce," said Beckett.

"If you are one of the millions of people currently out of contract, you can choose to move to a different plan or provider and potentially save hundreds of pounds," said Beckett.

"We know that for some, switching broadband providers might sound daunting, and many customers put it off because they can't risk losing their connection at home. However, thanks to a new process called One Touch Switch, the move is now taken care of for you. Your new provider manages the transition so you won't be left offline, making it an easy way to help offset the price rises coming from other household bills like council tax and water this April," added Beckett.