6 household bills going up in 2024 - and how to manage them

Household bills increase in price every year, and sadly 2024 is no exception. 

With one in 10 households already missing payments people will be keen to do whatever they can to stay on top of rising bills. 

Here, we round up the big price increases you need to be aware of next year. Where possible, we've included tips on steps you can take to keep those bills as low as you can. 

1. Council tax

Council tax is one of the biggest monthly outgoings for many households and usually rises in April.

If you live in Scotland, you can breathe a sigh of relief as council tax will be frozen at current levels until April 2025. However, no such announcement has been made for the rest of the UK.

The most councils can raise council tax each year in England, without calling a referendum, is 5%. Given the current average annual Band D council tax bill in England for 2023-24 is £2,065, that could mean a £103 increase.

Although a committee of MPs has urged local authorities to rein in 'aggressive' council tax collection methods for people who can't afford to pay, you can still face serious consequences if you miss a council tax payment. 

If you're worried about the price increase, there are a few things you can do:

• Contact your local authority. You can ask them about reducing or rescheduling payments if you can demonstrate you don't have enough money to cover them.
• Look into hardship relief. It's government support you can get if you're going through 'exceptional hardship' outside your control.
• Apply for a council tax reduction. If you're on a low income or receive benefits, you might be able to reduce your bill. Find out more on the government website.
• Challenge your council tax band. Last year, 14,000 people managed to reduce their council tax band by challenging their band. It's worth a try if you think your house might be valued too highly.

Find out more: how to reduce your council tax bill

2. TV licence fee

The annual TV licence fee has been frozen at £159 for two years, but from April it will increase to £169.50. That's a £10.50 rise - the equivalent of an additional 88p per month. 

This increase was lower than expected, as the government has opted for a below-inflation rise. The government had previously agreed with the BBC that the fee would rise in line with inflation from 2024, but it reneged on this agreement. 

If you need a TV licence, there isn't really a way to reduce this fee. But there are some ways you can be tactical. 

If your current licence will expire before 1 April 2024, renew it before the price goes up to lock in the current price for another year. 

Also if you are over 75 and receive Pension Credit you can get a TV licence for free. 

• Find out more: TV licence explained

3. Energy bills

Gas and electricity bills could rise by up to 5% in January, as the energy price cap is going up. 

The average household will pay an estimated £1,928, around £161 a month, if they use a 'medium' amount of energy. Currently, the same typical household will pay £153 a month. 

You won't be affected by the price cap rise if you're on a fixed deal. 

Try these methods if you want to keep bills as low as possible:

• Check your account to make sure you're being charged based on your readings, not estimates
• Question any changes by asking your energy firm how they were calculated
• Increase your efficiency by doing laundry at a lower temperature, etc. 

Find out more: energy price cap rises in January

4. Mobile and broadband

Earlier this week, Ofcom announced its intention to ban mobile and broadband mid-contract price rises that are linked to inflation. Unfortunately, the ban is not likely to come into force in time for next year's rises.

In 2024, some providers are likely to raise their prices by more than 8%, meaning you could end up paying as much as £120 more than you thought you would over the course of your contract. 

Which? has campaigned to end mid-contract price rises and will continue to call on firms to voluntarily end the practice.

For now, if you're on a rolling contract, shop around to switch to a cheaper provider - ideally, one that doesn't do mid-contract price rises. But if your contract hasn't ended yet, you'll likely have to ride it out to avoid a termination fee. 

You can also try haggling with your mobile or broadband provider. By threatening to leave, you could talk your way into a better deal. 

• Find out more: Regulator Ofcom proposes ban on unpredictable broadband and mobile mid-contract price rises after Which? campaign

5. Insurance premiums

Car and home insurance premiums have shot up this year.

The typical quoted price of home insurance jumped by over 36% in the 12 months to October, according to Consumer Intelligence, which tracks insurance pricing.

The average of the five cheapest quotes for a buildings and contents policy now stands at £227, as firms grapple with the costs of recent storm damage across the UK.

Laura Vas, senior insight analyst at Consumer Intelligence, said: 'Homeowners with prior claims may see additional increases in coming months following recent storm damage, although insurers could spread the claim costs across all policyholders driving further market inflation.'

Meanwhile, car insurance premiums have rocketed by 29% in the past year, according to the latest figures from the Association of British Insurers (ABI). Drivers paid an average of £561 in the third quarter of 2023 – the highest that prices have been since ABI's records began in 2012.

If you need to renew your policy in the coming months shop around for a new insurance deal on a comparison site like Compare the Market or GoCompare, then see if your existing provider can beat it.

Also, opt for an annual policy instead of monthly if you're renewing to avoid paying more in interest.

• Find out more: how to find cheap home insurance 

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6. Mortgages

Mortgages are now priced significantly higher than they were two years ago, meaning borrowers who need to switch deals in 2024 will face much higher repayments. 

On Thursday, the Bank of England decided to freeze the base rate at 5.25% - a 15-year high. The next decision on this key rate which influences the price of mortgages is in February 2024.

Since the last base rate decision on 2 November, mortgage rates have dipped. In September the average two-year fix was 6.3%, and the average five-year fix was 5.87%. Now they stand at 5.98% and 5.58%, respectively.  So we could see further small decreases in the coming weeks – but significant changes are highly unlikely. 

If you're coming to the end of your fixed-term mortgage, the best thing to do will depend on your situation. For example, if you're:

• Very near the end of a fixed term: start shopping around for a new deal now. You can usually secure a new mortgage six months before the end of your current one. 

• On a fixed term with more than six months to run: don't do anything for now. It's usually a bad idea to switch deals mid-term, as your lender will likely impose significant charges for doing so. If you think switching early may make sense, take advice from a mortgage broker.

• On a tracker mortgage: trackers rise in line with the base rate, so your mortgage has probably gone up significantly this year. Whether it's a good idea to switch before the end of your term depends on the specifics of your current mortgage and your circumstances. Take advice from a broker.

• On a standard variable rate (SVR) mortgage: this is usually the most expensive type of mortgage. If you're able to switch to an alternative deal, do so as soon as you can. 

If you're worried about being able to make your mortgage payments, your lender may be able to offer you support – it's best to contact them before missing any payments.

• Find out more: best mortgage rates December 2023 

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Will tax cuts leave more money for bills?

After the government's Autumn Statement in November, the Office for Budget Responsibility said the tax burden on workers will go up 'to its highest level in the post-war era'. This is despite an announced cut in National Insurance rates. 

It's all because the tax-free personal allowance threshold - the amount of your income that isn't taxed - is remaining frozen at £12,570 until 2028.

Since this threshold won't be rising along with wages, a larger proportion of your income will be taxable as time goes by. 

• Find out more: National Insurance calculator 

This story has been updated since it was first published. A previous version stated 'the most councils can raise council tax each year in England and Wales, without calling a referendum, is 5%'. We have removed reference to Wales as this rule only applies to England at the moment. 

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