Annual household bills have risen by £112 during the past year, according to new statistics from comparethemarket.com. The research which analyses the cost of energy, home and motor insurance since 2015 has shown a relentless rise in bills for households across the country. On average, people are spending £2,707 on these three products over the year – rising from £2,594 in 2018. Since 2015, bills have risen by £675 on average, demonstrating the increasing financial pressure that households have been under.
The increase in the cost of energy has accounted for almost all this year’s increase, shooting up by £106 over the past year. The average energy bill now stands at £1,813, up from £1,706 in 2018. This comes after years of increases in the cost of energy – in 2015 the average cost of energy stood at £1,289.
The energy price cap which was implemented in 2019 has clearly done little to halt the rise in the cost of energy. The price cap has seen many providers hike their prices, in particular, the Big Six suppliers, which account for a large majority of the market. The regular price increases have led to an exodus of customers from more traditional energy suppliers who have flocked to smaller providers.
By contrast, the cost of motor and home insurance has remained broadly flat for the year. The average cost of motor insurance has only increased by £1 to £729 over the past twelve months while home insurance costs have increased by £5 to £164, compared to 2018.
However, recent indications from comparethemarket.com’s Premium Drivers report, show that prices are spiking towards the end of 2019, with a £23 increase in motor premiums over the last quarter, and indications of further rises to come as a result of mooted delays to whiplash reform, government changes to the Ogden rate, as well as inflation in the size of claims people are making.
|Year||Energy||Home insurance||Car insurance||Total|
On a regional basis, Londoners are paying by far the most for their annual household bills:
- Londoners pay an average of £3,129 – more than £400 above the national average.
- The West Midlands is the second most expensive region, with household bills costing an average of £2,910 in 2019.
- The cheapest region to live in is Scotland, where households spend an average of £2,470 every year on bills.
The savings on offer for each of those products remain very high. The average person could save £482 on their household bills, the majority of which comes from energy where the average saving available stands at £355.
Simon McCulloch, Director at comparethemarket.com, said “A lot of attention during the general election was devoted to financial difficulties that many people face around the UK. These statistics are a stark reminder of not only the high cost of essential services, but of the huge increases that have been seen in the past few years. The average cost of energy, motor and home insurance is now £675, higher than 2015 – far above the rate of inflation.”
“Shopping around for a new provider is clearly an important step that we should all be taking to combat these rising prices. With the average saving for these products standing at £482, shopping around clearly goes a long way to mitigating the dramatic bill increases we have seen in recent years.”
2019 Average Cost – Regional table:
|Yorkshire And The Humber||£1,752.24||£161.02||£775.81||£2,689.06|