Household bills increase by £1,316 year on year

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.

The research found that 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.

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. 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.”

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