According to new research by Compare the Market, the annual cost of household bills is expected to decrease by an average of £350 year-on-year starting April 2024. The analysis includes energy, water, home insurance, motor insurance, and council tax costs. The combined expenses for these bills are projected to decrease by 6% on average compared to the previous year.
The reduction in household bills is mainly attributed to an anticipated decrease in energy costs. Ofgem’s upcoming price cap, effective from the beginning of April, is expected to set the typical household expenditure on energy at £1,690 per year. This amount is £810 lower than what households were paying in April of the previous year, based on the £2,500 Energy Price Guarantee that was in effect in April 2023.
However, other household bills have seen an increase over the past year. Car insurance costs have risen by £279 year-on-year as of February, and home insurance expenses have gone up by £50 during the same period. Additionally, council tax for a Band D property is projected to rise by an average of £106, while water bills are expected to increase by around £25. Collectively, these bills amount to £460 more than the previous year. Moreover, broadband, TV, and mobile phone bills are likely to increase in April in line with inflation. Therefore, it is crucial in the current financial climate to compare prices and explore different options before committing to or renewing household bills.
Starting from April 2024, the average annual cost for regular bills for many households could be around £5,435, down from £5,785 the previous year. Nevertheless, this is still £397 higher than the costs for the same bills in 2022, which amounted to £5,038. Consequently, numerous households are facing financial challenges. A survey conducted by Compare the Market revealed that 20% of individuals only made the minimum repayment on their most recent credit card bill, and less than half (48%) regularly pay off their balance in full. This indicates a rise in outstanding credit card balances as people grapple with the increasing cost of living.
Struggling With Unaffordable Debt?
If you would like to talk to someone about debt, we offer a free and confidential consultation to anyone in financial difficulty. We can advise you on a range of debt solutions suited to your individual circumstances, helping to protect you and your family with a sustainable way to manage your debt. Call 0800 121 48 63.
