HOUSEHOLD BILLS JUMP £1,316 YEAR ON YEAR

Published: 28/12/2022
  • Energy costs have risen the most as the average bill has surged by £1,223 over the past 12 months
  • The cost of car and home insurance has also increased by a combined average of £93
  • Households could save up to £492 by switching their car and home insurance through Comparethemarket.com

Household bills have surged by £1,316 in the past 12 months, according to new research by Comparethemarket. The research analyses the cost of energy, home, and motor insurance, and reveals bills have increased significantly in the past year.

A typical household spent £3,280 on their energy, car and home insurance in November 2022 – increasing from £1,964 in November 2021. These bills are also £1,461 higher than in November 2020, when the average cost was £1,819.

The typical household energy bill now stands at £2,500 due to the Government’s Energy Price Guarantee. This is a £1,223 increase from November 2021 and is £1,458 higher than in November 2020. The cost of energy bills is due to rise again in April 2023, as the Energy Price Guarantee for the average household will rise to £3,000 – a 20% increase from its current level. Other costs including broadband, TV, and phone bills are also expected to increase in line with inflation, therefore putting further pressure on household budgets.

Data from Comparethemarket’s latest Household Financial Confidence Tracker revealed over a third (36%) of households with children at home are currently struggling to afford energy bills, but when the Government’s Energy Price Guarantee changes next April, the number rises to nearly two thirds (63%).

The research shows insurance premiums have also increased in the past year as insurers have raised prices in response to things such as the higher cost of claims. The size of car insurance claims has risen due to an uplift in the value of second-hand cars and higher vehicle repair costs. The average cost of car insurance in November is £629 – a £76, or 14%, increase year-on-year. Home insurance premiums have also increased due to inflation pushing up the value of household contents, as well as the rising costs of materials and labour, meaning building repairs are more expensive. The average cost of home insurance has also risen by 13% to £151 in November 2022, up from £134 in November 2020.

Household bills Nov-20 Nov-21 Nov-22
Energy £1,042 £1,277 £2,500
Home £147 £134 £151
Motor £630 £553 £629
Total average bill £1,819 £1,964 £3,280

 

However, households could save up to £492 by switching their car and home insurance through Comparethemarket. This includes a saving of up to £3281 on motor insurance and up to £1642 on home insurance. In addition, one in three customers could save up to £1883 by switching broadband through Comparethemarket.

Hélène Barnes, Cost of Living Expert at Comparethemarket, comments:

“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. 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.”

Notes to editors:

Methodology

Insurance data is sourced from Comparethemarket. 51% of Comparethemarket customers were quoted less than the prices stated in this release for their car insurance.

1 Based on online independent research by Consumer Intelligence during August, 2022. 51% of customers could achieve this saving on their car insurance through Comparethemarket.

2 Based on online independent research by Consumer Intelligence during August, 2022. 51% of customers could achieve this saving on their building and contents insurance through Comparethemarket.

3 1 in 3 customers could save up to £188.28*
*34% of customers could achieve an annual saving of up to £188.28 (£34.68 monthly bill) from nationally representative sample of 2000 customers (990 Broadband only) vs our cheapest monthly cost for superfast broadband (67Mbs), £18.99/month, prices correct at Sep 22.

About comparethemarket.com

comparethemarket.com was launched in 2006 and has grown rapidly over the past sixteen years to become one of the UK’s leading price comparison websites.

comparethemarket.com provides customers with an easy way to make the right choice for them on a wide range of products including motor, home, life, travel and pet insurance as well as utilities and money products such as credit cards and loans.

comparethemarket.com actively works with its brand partners to help provide great services to customers.

comparethemarket.com is a trading name of Compare The Market Limited. Registered in England No. 10636682. Registered Office: Pegasus House, Bakewell Road, Orton Southgate, Peterborough, PE2 6YS. Compare The Market Limited is authorised and regulated by the Financial Conduct Authority for insurance distribution (Firm Reference Number: 778488). Energy and Digital products are not regulated by the FCA.