Household bills have risen by £112 over the past year

The annual cost of household bills has risen by £112 on average year-on-year, according to new research by Compare the Market. The research analyses the cost of energy, water, home insurance, motor insurance, and council tax. It reveals that the combined cost of these household bills has risen by 2% on average, compared to 12 months ago.

The increase in household bills is primarily due to the rise in the cost of energy. Ofgem’s latest price cap costs a typical household £1,849 per year, an increase of £159 more than what households were paying at the same time last year (£1,690). Council tax(Band D) and water bills have also both risen by more than £100 year-on-year on average. Combined, these bills will typically cost households £391 more than in 2024. In addition, broadband, TV, and mobile phone bills typically increase in April.

Despite other rising household bill costs, the price of car insurance has fallen over the past 12 months. The average car insurance premium has declined by £268 year-on-year to £662 in April. This could potentially offset the other rising bills, but households may need to shop around to ensure they find the best deals. The cost of home insurance also fell by £11 year-on-year in April to £212.

In total, households pay £5,606 on average each year for their regular bills – increasing from £5,494 last year. However, these household bills are still typically cheaper than in 2023 when they cost £5,785. As a result, many households are finding it difficult to make ends meet. As bills are increasing, households should try to find savings where they can. Households could save up to £681 on both their car and home insurance together through Compare the Market. This includes a saving of up to £479 on car insurance and a saving of up to £202 on home insurance. There are also several energy deals available to customers that are cheaper than the current price cap.

Guy Anker, Cost of Living Expert at Compare the Market, said “Our latest data shows a significant rise in energy and water prices which can cause a strain on household budgets. With the average bill increasing again this year, it’s more important than ever for households to shop around for cheaper deals on bills where they can. You could save a significant amount of money by checking a price comparison site for deals on your regular outgoings, such as car and home insurance, energy bills, broadband, and credit cards, when they’re up for renewal.”

Household Bill	Cost in 2024	Cost in 2025	Change (£)
Energy Bill	£1,690	£1,849	£159
Home Insurance	£223	£212	-£11
Motor Insurance	£930	£662	-£268
Water Bill	£480	£603	£123
Council Tax (Band D)	£2,171	£2,280	£109
Total Cost	£5,494	£5,606	£112