Household bills up £550 in three years
Comparethemarket.com found that annual household bills have risen three and a half times faster than inflation over the past three years. On average, people are paying £2,590 for these three products over the year – up from £2,032 in 2015.
The single largest contributor to rising costs was energy bills. The average energy bill is up £417 since 2016 and currently sits at £1,706. The Big Six still accounts for around 70% of the energy market and has been hiking prices, but the past 12 months has seen a number of smaller energy providers go to the wall. This has left consumers reluctant to switch.
Motor insurance costs have risen following rises in Insurance Premium Tax and changes to the Ogden Discount Rate (the rate used to calculate personal injury claims). The average motor insurance policy in 2018 cost £724, compared to £611 in 2015 – an 18.5% increase.
Londoners are still paying more than any other region £2,981 – nearly £400 above the national average. The North West is the second most expensive region with average household bills of £2,835 in 2018. Households in the North East pay an average of £2,368 every year, the lowest in the country.
Simon McCulloch, director at comparethemarket.com, said: “The cost of living crisis has been well publicised over the past few years and these statistics further add to the weight of evidence that households are under unprecedented pressure in managing their finances. Hikes to bills have come from all directions in recent years with multiple increases in Insurance Premium Tax driving up insurance premiums (including car and home insurance), and the Big Six’s relentless energy price hikes forcing loyal customers to pay ever more for a basic living requirement. The research highlights just how important it is for people to be aware that, when it comes to your bills, loyalty does not pay.