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Household Bills

London’s household bill postcode lottery revealed

Kit Klarenberg
Written By:
Kit Klarenberg

A new postcode lottery has emerged in London, with household bills costing on average over £1,270 more in certain areas.

Analysis by comparethemarket.com of energy, household and car insurance fees found wide discrepancies in average bill costs between London boroughs, with costs for these utilities being 39 per cent higher in the borough of Kensington & Chelsea than Merton.

Kensington & Chelsea was the most costly borough for energy, home insurance and car insurance bills, with an average annual cost of £3,228. The comparison site attributed this to the borough’s high property values, sizeable average income and energy consumption per household.

Conversely, Newham – an area home to London’s lowest average income – was the second most expensive, with these bills costing an average of £2,860. This ranking is largely attributable to disproportionately high average car insurance premiums in the borough (£1,380), stemming from high levels of motor crime.

The findings attest to the significant pressure placed on the cost of living in the capital by high energy, home insurance and car insurance bills, with costs on average 16 per cent more expensive in London than the rest of the UK. While energy bills were found to be 3 per cent cheaper in London, home insurance and car insurance are 34 per cent and 56 per cent more expensive respectively.

This research further demonstrates the great divide in the cost of living between London and the rest of the country,” said Simon McCulloch, director of insurance at comparethemarket.com.

“With house prices continuing to rise and travel fares as high as they have ever been, this will be another blow to the average Londoner who continues to face increasing pressure on their finances.

“The research also shows the ‘postcode lottery’ effect in full force with a remarkable 39 per cent difference in average bills between boroughs. With a £1,270 difference between areas, the cost of energy, home insurance and car insurance could begin to become a factor when people are deciding on where to move.”