How much should you expect to spend on your household bills in 2024?
Unfortunately, it looks like household bills will rise again in the UK next year. Here are our predictions for how you can expect your bills to change in 2024.
Changes to the energy price cap
The energy price cap is the maximum amount that energy companies can charge per unit for their gas and electricity.
While there are some fixed-rate tariffs available on the market, most UK households are still on a variable tariff that is controlled by the price cap. The energy price cap is adjusted every three months in January, April, July and October, with the new price cap announced around six weeks before.
We’re due to find out what the new price cap will be from January 1st in the next week. Currently, analysts at Cornwall Insight predict that the new price cap will be around 5% higher than the current cap.
From April the price cap is then expected to fall slightly. However, as we look further in the future it becomes harder to accurately predict energy prices as they are closely linked to international events, including ongoing global conflicts.
Will water bills rise in 2024?
Another change to your household bills in 2024 is likely to be a rise in your water bill. Your water tariff is recalculated in April of each year, with the new cost largely based on inflation from the year before.
However, for customers of some suppliers, water bills will be rising less than expected. 12 underperforming water companies identified by Ofwat have been asked to repay a total of £114 million to customers in the form of bill reductions. In real terms, these customers will still see a rise in their bill, although it will be lower than initially thought. You can see more, including which suppliers have been asked to repay customers, here.
This jump in household bills in 2024 is, unfortunately, a prelude to bigger price rises to come. Provided Ofwat approve the proposal, the average customer will see their bill rise by £156 a year between 2025 and 2030. Read more about the proposal, and what the bill increase will be paying for, here.
Council Tax in 2024
Just like water, Council Tax bills are updated in April at the beginning of the new tax year. Chancellor Jeremy Hunt has confirmed that local authorities will be allowed to raise their bills by up to 5% in 2024.
It’s expected that the majority of Band D properties will pay more than £2,000 a year in Council Tax in April. Properties in higher bands could see their bills rise by up to £120 a year.
Broadband price rises in 2024
Most UK broadband suppliers also include an inflation-based price increase in their contracts, even for customers on a fixed plan. 12 major broadband suppliers raised their prices mid-contract in April 2023: BT, Community Fibre, EE, Gigaclear, KCOM, Now Broadband, Plusnet, Sky, TalkTalk, Virgin Media and Vodafone.
You can check your current broadband contract to see if you can expect a price rise in April. It’s expected that most suppliers will raise prices again, aside from those who guarantee their in-contract prices. These providers tend to be smaller companies such as Hyperoptic.
Your broadband supplier will also reach out to you before a price rise to confirm what your new bill will be. If you’re unhappy with the new price you can consider switching providers – but be aware that if you’re still under contract you may have to pay an exit fee. Read more about how to cancel your broadband contract without an exit fee here.
The TV licence fee is increasing
Update 07/12/23: The government has confirmed the new licence fee will be £169.50 from April. This is a rise of 6.6%, based on the rate of inflation in September rather than an average through the year.
The cost of a TV licence, which allows you to watch live TV, has been frozen since 2022. It’s next due to rise in April 2024, based on inflation.
The BBC has announced they expect the fee to rise by 9% to £173.30 in April.
However, the government has been critical of the proposed rise, with Culture Secretary Lucy Frazer calling it ‘very high’. Read more about how the TV licence might change in 2024 – and in 2027 – here.
Estimate your household bills in 2024
If you’re unsure how much to budget for household bills in a new home, or if you want to see how your energy bill compares to the average for your property, try our free utility bill calculator.
We keep the calculator updated with the latest unit rates for energy and water, so you can accurately estimate your bills. Check back throughout the year to see how you’ll be affected by changes to the energy price cap and new water rates.