Energy caps and inflations dips are nice - but this is why you'll still feel broke in April

Energy regulator Ofgem confirmed that the price cap will fall from £1,758 to £1,641 on 1 April, a drop of £117 a year for the average household.

After years of eye-watering increases and dread about what the next bill might look like, any reduction is welcome for stretched households – particularly at a time when debt on energy bills has rocketed to record levels.

The figure isn’t quite the £150 reduction Rachel Reeves talked about delivering in her Autumn Budget. Rising network and policy costs mean the final number is a little less generous than first trailed. Still, £117 is a decent bung.

But before anyone assumes they’ll feel better off this spring, it’s worth looking at what else is changing.

The same day energy bills are due to fall, a string of other household costs are heading sharply in the opposite direction.

April has quietly become the month when Britain’s biggest bills go up. And this year, those increases will wipe out the £117 saving as soon as it arrives.

Start with mobiles. A typical household now has two contracts and, with mid-contract rises of £2.50 per month baked into many deals, that’s £60 extra a year.

Broadband bills are climbing too, with standard mid-contract price rises adding £48 annually for millions of homes.

Council tax will deliver the real sting, with the average Band D bill due to rise by £114 a year. The TV licence is ticking up by £6.63. Water bills are increasing by £42 on average.

Add it all together, and households are facing roughly £270 in additional annual costs, landing at the same time as the £117 energy saving.

In other words, the good news is more than cancelled out.

This is the frustrating reality of the cost-of-living squeeze in 2026.

Individual headlines may look positive. Inflation is lower than it was. The energy price cap is falling. But the overall pressure on household budgets hasn’t eased in any meaningful way.

What’s more, most households still pay more than they need to for their essential bills. Not because they’re careless or financially reckless, but because the system is designed so that overpaying is the default.

Staying on top of it all requires time, attention and stamina. You need to know when contracts end, compare complex tariffs, challenge renewal quotes and be prepared to switch. For busy families juggling work, childcare and rising living costs, that’s a significant burden.

Suppliers understand this perfectly well – and profit from our inertia.

It isn’t fair, and it’s why new AI-powered tools are emerging to do the work on households’ behalf.

Because the biggest opportunity right now isn’t waiting for the next regulatory tweak or political announcement.

It’s making sure you’re not overpaying in a system that relies on you doing exactly that.

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Greg Marsh is the founder and CEO of money-saving tool Nous.co, and a household finance expert.

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