Cost of Living Updates: What’s Changing This April?

April marks the start of a new financial year, and with it comes a number of changes that can affect household budgets. While some costs are rising, there are also a few areas where people may see a small increase in income or a reduction in bills. Here’s a clear breakdown of what’s changing in April 2026—and what it could mean for you.

Energy bills: a small drop, but costs remain high

From April, the energy price cap—set by the UK regulator Ofgem—has decreased by around 7%. This means a typical household bill falls from about £1,758 to £1,641 per year, saving roughly £117 annually (around £10 a month).

The energy price cap limits how much suppliers can charge per unit of gas and electricity for those on standard variable tariffs. It does not cap your total bill—so what you pay still depends on how much energy you use.

While this reduction offers some relief, bills are still significantly higher than they were a few years ago, so many households may continue to feel pressure.

Council tax: rising for most households

Council tax is increasing across much of England, with most local authorities raising bills by around 4.99%—the maximum allowed without a referendum.

For a typical Band D property, this could mean an increase of roughly £100–£120 per year, depending on your area.

These increases are often used to fund local services, but they can add extra strain to already tight budgets.

Benefits and pensions: modest increases

There are also some positive changes to income support:

• Universal Credit and other benefits are increasing in line with inflation (around 3–4%)

• The state pension is rising by around 4.8%, worth up to £575 more per year for some pensioners

• The two-child benefit cap is being removed, which may significantly increase support for some families

While these increases are helpful, they may not fully keep up with rising living costs for everyone.

Other household bills to be aware of

It’s not just energy and council tax changing:

• Water bills are rising by around £33 per year on average

• Some broadband and mobile contracts are also increasing in price

• Other everyday costs may continue to rise due to inflation

What can you do now?

With multiple changes happening at once, it’s important to take a few simple steps:

• Review your budget: Check how these changes affect your monthly spending

• Check your benefits: You may be entitled to more support than you realise

• Speak up early: If you’re struggling with bills or rent, contact your provider or landlord as soon as possible

• Get free advice: Citizens Advice can help you understand your options, check entitlements, and find ways to manage rising costs

You’re not alone

Although April’s changes can feel overwhelming, support is available. Even small actions—like checking your bills or seeking advice—can make a real difference. If you’re unsure where to start, reaching out for guidance could help you stay on top of your finances and avoid problems later on.

If you need free and confidential advice, contact Citizens Advice Stevenage on (freephone) 0800 144 8848, visit our website https://www.castevenage.org.uk/get-advice, or come into our reception between 9:30am and 3:30pm at Daneshill House, Danestrete, Stevenage, SG1 1BY.