Energy bills fall but UK households hit with £143 rise

While the new price cap from Ofgem will cut average gas and electricity costs, a wave of increases in other essential bills means most families will still end up paying more overall.

New analysis shows a typical household will be £143 worse off from April – despite the drop in energy prices.

Bills rising faster than savings

The problem isn’t just energy, says the data from Nous.co – it’s everything else too.

• Council tax is rising by around £114 a year for a typical Band D home
• Water bills are increasing by about £33 annually
• Broadband and mobile contracts are also going up

Together, these increases more than wipe out any savings from lower gas and electricity bills.

“For most households, the relief from cheaper energy will be cancelled out elsewhere,” said Greg Marsh, CEO of Nous.co.

A postcode lottery across the UK

Where you live could make a huge difference to how hard you’re hit.

Households in Wandsworth will see one of the smallest increases – around £30 a year – thanks to lower council tax.

But in Shropshire, rising council tax and water charges mean bills could jump by as much as £211 annually.

Warning: energy bills could rise again

Global instability, particularly tensions involving Iran, is already pushing wholesale energy prices higher – raising fears that bills could surge again later this year.

Forecasts suggest the price cap could rise sharply in July, potentially adding hundreds of pounds back onto annual bills.

Even after April’s drop, households are still paying more than £500 a year extra compared to before the 2021 energy crisis.

Urgent warning: submit meter readings now

Consumers are being urged to act before the April price change kicks in.

The charity Advice Direct Scotland is calling on households to submit meter readings before March 31 to avoid being overcharged.

Without an accurate reading, suppliers may estimate usage – meaning some customers could end up paying higher, outdated rates.

Gareth Kloet, energy expert at Go.Compare, adds: “Taking a meter reading on 31 March is one of the simplest ways to make sure you don’t overpay for your energy bills and ensures that you’re charged at the new, lower rate as soon as it kicks in.”

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What you can do now

• Submit a meter reading before April 1
• Check if your tariff is still competitive
• Review broadband and mobile contracts
• Seek advice if you’re struggling

Experts warn this isn’t a short-term problem.

“This isn’t a one-off hit,” Marsh said. “Households are facing a prolonged squeeze.”

He added that many people could be overpaying by hundreds of pounds simply because keeping track of rising bills is too complex and time-consuming.