Household bills predicted to fall by £350

2nd April 2024

The annual cost of household bills is predicted to drop by £350 on average year-on-year in April 2024, 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 is set to decline by 6% on average, compared to 12 months ago.

The decline in household bills is primarily due to an upcoming fall in the cost of energy. Ofgem’s latest price cap which will be introduced at the start of April will cost a typical household £1,690 per year. This will be £810 less than households were paying in the same month last year, based on the £2,500 Energy Price Guarantee that was in place in April 2023.

However, the cost of other household bills has risen over the past 12 months. The typical cost of car insurance has increased by £279 in February year-on-year and home insurance has risen by £50 within the same time period. Council tax for a Band D property is also set to increase by an average of £106 while water bills will typically rise by £25. Combined, these bills cost households £460 more than last year. In addition, broadband, TV, and mobile phone bills will typically increase in April in line with inflation. It remains as important as ever in the current financial climate to compare prices and shop around where possible ahead of purchasing or renewing your household bills.

From April 2024, many households could be paying £5,435 on average each year for their regular bills – falling from £5,785 last year. However, this is still £397 more than the cost for the same bills in 2022 (£5,038). As a result, many households are finding it difficult to make ends meet. A separate Compare the Market survey found one in five (20%) people only managed to make the minimum repayment on their most recent credit card bill, and less than half (48%) regularly pay off their balance in full. This suggests outstanding balances on credit cards are increasing, as people struggle with the cost-of-living crisis.

Despite the lower energy bills, many people will still be trying to find savings where they can. Households could save up to £779 on both their car and home insurance together through Compare the Market. This includes a saving of up to £578 on car insurance and a saving of up to £201 on home insurance. A third of customers could also save £186 purchasing broadband through Compare the Market.

Andy Hancock, Chief Growth Officer at Compare the Market, said “The predicted fall in annual bills overall is a rare piece of good news following the continuous long-standing pressure on household budgets. The decline in the cost of energy will be welcomed by many households across the UK. However, it’s important to note that household bills are still considerably higher than two years ago. Shopping around for cheaper deals on household bills remains one of the best ways for anyone to try and save money. You could save a significant amount of money by checking for deals on your regular bills when they’re up for renewal, such as car and home insurance, broadband, and credit cards.”

Household Bill Cost in 2023 Cost in 2024 Change (£)
Energy Bill* £2,500 £1,690 -£810
Home Insurance £159 £209 £50
Motor Insurance £613 £892 £279
Water Bill £448 £473 £25
Council Tax (Band D) £2,065 £2,171 £106
Total Cost £5,785 £5,435 -£350