Brits worried as household bills soar by by £1.3k this year | Personal Finance | Finance


Comparethemarket analysed the cost of energy, home, and motor insurance, and, thanks to the deepening cost-of-living crisis, found significant increases in the past 12 months.

According to the research, a typical household spent £3,280 on their energy, car and home insurance last month, a staggering 67 percent increase on figures from November 2021.

These bills are also £1,461 higher than in November 2020, when the average cost was £1,819.

Back in October, Liz Truss introduced the energy price guarantee which capped annual bills at £2,500 a year for a typical household.

But energy bills could still be higher or lower than this, depending on factors such as how well-insulated a property is and how many people are living in a property.

The typical cost under the guarantee, which has been extended until April 2024, is £1,223 higher than regulator Ofgem’s energy price cap that was in place in November 2021, at £1,277, comparethemarket said.

Hélène Barnes, cost-of-living expert at Comparethemarket, said: “Millions of households will be worried about rising costs, with many struggling to afford their regular bills and energy prices which are at their highest level in years.

“The cost of energy is set to increase further when the Energy Price Guarantee rises in April 2023.”

House insurance costs also rose to £151 in November 2022, up by £17 from £134 in November 2021.

Other costs, including broadband, TV and phone bills are also expected to increase in line with inflation, putting further pressure on household budgets, comparethemarket said.

Ms Barnes added: “Most broadband, phone and TV providers are also set to raise their prices in line with inflation in April, and many households will likely face a big payment shock.

“Before these price rises are introduced, households need to check all their regular bills to see where they could save money.

“Our research shows most households could save hundreds of pounds by shopping around for deals on their bills, such as car and home insurance, and could save even more looking out for deals on broadband and credit cards.

“Comparing prices online is one of the best ways to check you’re getting value for money.”

The comparison site’s latest household financial confidence tracker survey found more than a third (36 percent) of households with children at home are struggling to afford energy bills.

Rocio Concha, Which? Director of Policy and Advocacy, said: “Which? research shows that nearly two million households missed or defaulted on at least one mortgage, rent, loan, credit card or bill payment in the last month.

“And with missed payments typically higher in January, that figure may well increase as households cope with the double whammy of paying off Christmas and other cost-of-living pressures.

“It’s vital that firms in key sectors, such as supermarkets, energy and telecoms are doing all they can to help their customers to find the best possible deals and avoid unnecessary or unfair costs and charges during this crisis.”

Managing Consultant at Cornwall Insight, Andrew Enzor, said: “Household energy bills have increased significantly over the past year.

“The Price Cap for Winter 2021/22 saw a typical dual-fuel customer facing an annual cost of ~£1,300. This has increased to £2,500 from October 2022 and is set to further increase to £3,000 from April 2023.

“However, that increase would have been more severe had it not been for Government intervention to shield consumers from the worst effects of high wholesale energy costs. Without that intervention, a typical customer would be facing an annual cost of ~£4,279 from January 2023.

“This will be concerning to the Government, which is in effect funding the shortfall. We expect this to cost approximately £42bn for the 18-month period from October 2022 to March 2024.”


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