5 things that will cost you more in 2026 – and two that will cost less

hopticsJanuary 1, 2026

2026 is nearly upon us – and as the dust settles on the festive season for another year, we’re all wondering what the next 12 months will bring us – and whether it might finally bring an end to the cost of living crisis. And while the UK’s inflation rate might have fallen over the past year – dropping to 3.2% by November, according to the Office for National Statistics – higher food prices, increased energy bills and other day-to-day essentials are still set to challenge us next year. Some things are expected to get even more expensive, but the good news is that there will be some relief, as other household bills get cheaper. So what can you expect to pay more – and less – for as 2026 kicks off? (Picture: Getty Images)

Pay more – council tax

Your council tax bill is among the things you could be paying more for in 2026, although this largely depends on where you live. Councils have been given the green light to raise the core tax by 3% and the adult social care precept by 2% next year. Some London boroughs, including Kensington and Chelsea and Westminster, will also be able to raise theirs by more than five per cent, due to having some of the city’s lowest rates. However, none of them have yet said they will do this. (Picture: Getty Images)

Pay more – transport

If you live and work in London, your commute is about to get more expensive. Fares on the London Underground, Overground and Elizabeth Line are increasing by 5.8% from March 1. Which means, for example, that peak time TFL fares in Zone 1 will rise from £2.90 to £3.10, and from £2.80 to £3 at off-peak times and weekends. Meanwhile, travelling from Zone 1 all the way out to Zone 5 will cost you £3.80 instead of £3.60. (Picture: Getty Images)

Pay more – broadband

Millions of households could well end up paying more for their internet in 2026, with BT, EE, Virgin and Vodafone among those who’ll be putting their prices up. Customers can expect to pay an average of around £4 a month extra from April, according to LoveMoney – putting an extra £48 per year on your broadband bill. (Picture: Getty Images)

Pay more – water bills

Another bill, which could cost you more in 2026 is water. Regulator Ofwat has agreed to charges rising an average of £19 per year between now and 2030, but five suppliers – Anglian, Northumbrian, Southern, Wessex and South East – have won a case to raise prices even more than that. While an exact figure of how much more you can expect to pay is unclear, this guide from the Consumer Council for Water should give you some idea. (Picture: Getty Images)

Pay more – flights

Jetting off somewhere in 2026? It won’t just be your flight that’s soaring – the cost of it will be going up too. From April next year, air passenger duty is set to rise – adding £2 to the cost of your average short-haul flight, and as much as £14 to the cost of a long-haul ticket. Which might not sound like much, but if a family of four or more is flying, it soon mounts up. (Picture: Getty Images)

Pay less – electric cars

With petrol and diesel prices remaining unpredictable, and a 2022 cut in fuel tax set to be phased out in the coming year, many might be thinking of swapping their petrol-powered car for an electric vehicle. And the good news is, you could well be paying less for one next year, with a number of factors coming into play. LoveMoney has pointed out that the new taxes introduced by Rachel Reeves at the recent Budget (3p per mile for electric and 1.5p for hybrid) could lead to a drop in demand for the vehicles, and a subsequent downturn in prices. However, a drop in the cost of batteries (as predicted by Goldman Sachs), more manufacturers making the cars, and a rise in the number of second-hand models could all contribute to them becoming more cost-effective. (Picture: Getty Images)

Pay more and pay less – energy bills

This is an odd one, as you’re going to notice both an increase and a decrease in the cost of your energy bills in 2026. While the energy price cap is set to rise by 0.2% across England, Scotland and Wales between January 1 and March 31 next year (an increase of 28p per household paying by direct debit), it’s set to get cheaper as the months go on. From April, the government is axing some of the green levies, reducing bills by around £150. And with the price cap also predicted to go down as the years go on, you could well find your bills are lower by the time 2027 rolls around. (Picture: Getty Images)

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