• Household bills dramatically fall by £186, driven by lower energy - equates to £5 billion in savings
  • Average energy bill fell by 14.8% - equating to a £244.91 average saving for consumers
  • East Anglians have saved £246 on bills in the past year

Consumers are set to receive a welcome surprise this Christmas as household bills have taken a dramatic fall of 8.5% or £186 over the course of 2015*, according to comparethemarket.com. The huge savings equate to over £5 billion in extra cash for British households.

Data compiled by comparethemarket.com shows a reduction in the cost of energy, which was the primary driver of the fall in overall bills. The average annual cost of energy was an astonishing 14.8% lower than 2014, equating to a £244.91 average saving for customers. The reduction comes following a sustained period of pressure on energy companies to pass on the reduced wholesale cost of energy to its customers.

Car insurance was the outlier in this research, with costs actually increasing by almost 9% on average, equating to an additional £50 cost in 2015 compared to 2014. However, the extensive savings on energy and home insurance more than mitigated that rise, meaning that, average annual household bills, across energy, home and car insurance, totalled £2,019 in 2015, down from £2,205 in 2014.

Average change in household bills (YOY)

Energy

Home Insurance

Car Insurance

Total

-£224.91

-£10.49

+£49.36

£186.03

 

East Anglians were the biggest beneficiaries of the reduction in bills, seeing a £246 average drop year on year. East Anglia was quickly followed by the South West whose household bills fell by £231 on average. The North East saw the smallest reduction in bills of £109 after household energy costs in the region dropped by £156 - £68 less than the average fall.

 

Average household bills

Region

2015

2014

Change

East Anglia

£1,887.30

£2,133.51

-£246.21

East Midlands

£1,988.74

£2,155.25

-£166.51

Greater London

£2,367.29

£2,564.21

-£196.92

North East

£2,004.77

£2,113.76

-£108.99

North West

£2,162.16

£2,373.91

-£211.74

Scotland

£1,869.43

£2,054.74

-£185.30

South East

£2,067.55

£2,248.53

-£180.98

South West

£1,806.37

£2,037.46

-£231.09

Wales

£1,949.38

£2,124.18

-£174.80

West Midlands

£2,100.56

£2,282.63

-£182.06

Yorkshire & Humber

£2,015.69

£2,177.47

-£161.78

 

Commenting on the findings, Simon McCulloch, Director of Insurance, comparethemarket.com, said:

“This revelation will be a welcome Christmas surprise for many consumers who have faced a steady stream of bill increases for the past few years. With the number of people switching up 20% on the same period in 2014, savings in wholesale energy costs are being passed onto consumers by the suppliers offering cheaper fixed tariffs. This fall in household bills, coupled with low inflation and lower petrol costs, may mean that there may be a few more presents under the tree this year!

“However, the news is not all rosy; car insurance costs have continued to rise across the country, going up by almost £50 in 2015. With the rise in insurance premium tax coming into effect at the start of November, it seems that the ongoing rise is not going away anytime soon.”

*From 1 January to end of October.

About comparethemarket.com

comparethemarket.com was launched in 2006 and has grown rapidly over the past nine 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 selects its brand partners, working with the best and most trusted organisations to ensure quality service to consumers.

comparethemarket.com is a trading name of BISL Limited.  BISL Limited is authorised and regulated by the Financial Conduct Authority. Registered Address: Pegasus House, Bakewell Road, Orton Southgate, Peterborough, PE2 6YS. Registered in England number 3231094.