English councils vary widely in how much they charge for services such as parking, swimming and school meals and should review their prices, the Audit Commission said on Tuesday.
That could mean price hikes or the introduction of charges for services that are currently free.
The Commission, responsible for auditing local government, said people were more receptive to paying for some services than was often assumed.
"The public is more willing to pay charges if they can see what they can get for their money," said Audit Commission Chairman Michael O'Higgins.
"With pressures on public finances and rising expectations, councils should look at what they charge and who pays so they can make better use of charging to improve outcomes for local people."
A comparison of four similar councils across the country found that the amount paid by families for the same list of chargeable services could vary by as much as 386 pounds a year.
Across England the cost of a burial ranges from 58 pounds to 4,000 pounds, while the charge for an adult swim varies from 1.68 pounds to 4.75 pounds, the Commission said.
Local Government Association Chairman Simon Milton said it was no surprise that charging varied across councils.
"Every area has its own unique issues and councils will rightly adopt charging policies to local circumstances," he said.
He said councils faced tough choices between cutting spending cuts, raising council tax and charging fees.
"In certain parts of the country the money councils will receive next year from central government will make it the worst settlement for a decade," he said.
Councils raised 10.8 billion pounds from local charges in the 2006-7 tax year, around 8 percent of their income and equivalent to 210 pounds for every person in England.
The charges came on top of the 22.4 billion pounds raised in property-based council taxes.
