Cost of living · The bills · UK · 1996 and 2025 data
Which bills got heavier than pay, and which did not?
The same gas and electricity as 30 years ago, and Council Tax, rose faster than take-home pay: by 36% and 28% against pay. Water was about level. Phone, TV and internet bills look heavier, but today’s bill buys services that barely existed 30 years ago. Energy looks lighter if you count how much less homes now use.
Evidence last reviewed 29 October 2026
The bills, side by side
Survey-based evidence
| 30 years ago (1996) | Now | Cash | Against pay | |
|---|---|---|---|---|
| Gas and electricity, a yearThe same amount of energy both years | £593 | £2,225 | ×3.7 | 1.36 |
| Council Tax, a yearEngland, Band D | £646 | £2,280 | ×3.5 | 1.28 |
| Water and sewerage, a yearEngland and Wales. 2025-26 is a forecast | £220.52 | £603 | ×2.7 | 0.99 |
| Phones, TV, broadband and streaming, a weekHousehold average. Not like for like | £8.60 | £27.10 | ×3.2 | 1.14 |
| TV licence, a yearColour, 1996 and 2025-26 | £89.50 | £174.50 | ×1.9 | 0.70 |
Energy: the same energy, or what homes actually use
Our central figure holds energy use at the 1996 level: 3,800 kWh of electricity and 15,000 kWh of gas a year. That bill rose from £593 to £2,225, heavier than pay by 36%. It is the price of the same energy.
Homes now use less. Calculated from the official national totals, the average household used about 4,529 kWh of electricity and 15,833 kWh of gas in 1996, and about 3,317 and 8,632 in 2025. At those amounts the bill went from about £671 to about £1,668. That is 2.5 times the 1996 bill, which is 10% lighter than pay.
Both are true. The price of each unit is heavier than pay. People use less, through better insulation and appliances, and perhaps because of cost. The figures cannot separate those. The use figures are a calculation: they divide national use by all households, including homes with no gas, and 1996 was a cold year.
Council Tax: Band D, or the average home
Band D is a notional measure. The average bill per dwelling is lower: £529 in 1996-97 and £1,770 in 2025-26, a rise of 3.3 times, against 3.5 times for Band D. Either way, it rose faster than take-home pay. England only.
Water
The average household bill was £220.52 in 1996-97 (England and Wales). The 2025-26 figure, £603, is a forecast from the industry body, not a measured bill. Against pay it is about level (0.99).
Phones, TV and internet
Households spent about £8.60 a week on phones, the TV licence and TV rental in 1996-97, and about £27.10 a week on phones, broadband, TV and streaming in 2024-25. The rise looks heavier than pay, but the two baskets are not the same. Broadband and streaming barely existed in 1996. We keep the line to show the bill, not to claim the same service costs more.
Food, petrol and goods
These are lighter than pay. Food prices are about 2.2 times what they were, petrol 2.4 times. The goods and clothes figures use price indices that disagree, so they are shown as a range. The 15% fall in everything except the home is on the main page.
Sources and methods (11)
- DESNZ, annual domestic energy price statistics, 2.2.1 and 2.3.1 (released 30 Jul 2026) — Gas and electricity bills, 1996 and 2025.
- Ofgem, energy price cap (released 26 Aug 2026) — 2025 unit rates and standing charges.
- DESNZ, Energy Consumption in the UK 2026, C1, I3 (released 24 Sep 2026) — Domestic energy use per household (calculated).
- MHCLG, Council Tax levels (released Apr 2026) — Council Tax, Band D.
- House of Commons written answer, 8 Feb 2001 (released 8 Feb 2001) — Water and sewerage bill, 1996-97.
- Water UK, annual average bill changes 2025-26 (released Feb 2025) — Water bill, 2025-26 (forecast).
- ONS, Family Spending in the UK, April 2024 to March 2025 (released 11 Jun 2026) — Spending lines for phones, TV, broadband and repairs.
- The Communications (Television Licensing) (Amendment) Regulations 2026 (released Feb 2026) — TV licence fee.
- DESNZ, monthly and annual prices of road fuels, 4.1.2 (released 29 Sep 2026) — Petrol, 1996 and 2025.
- DEFRA, Family Food datasets (released 17 Sep 2026) — Food prices from spending and quantity.
- British Film Institute, official statistics 2025 (released 5 Feb 2026) — Cinema box office and admissions, 2025.
Method notes
- Energy: DESNZ 1996 bills at 3,800 kWh and 15,000 kWh, against Ofgem 2025 rates scaled to DESNZ’s 2025 average bills, at the same use.
- Energy at actual use: national use divided by UK households (DESNZ), priced at each year’s average cost per kWh. A calculation, not a published figure.
- Phones, TV and internet: household survey averages, not a price index.