The cost of household bills

The cost of household bills


Posted 17th Nov 2017 by Peter Byrne

The average Brit spends over £686,000 on household bills in a lifetime, a study has found

The poll of 2,000 bill payers found the average household forks out £11,379 a year on energy and water bills, mortgages or rent, insurances and loans.

This mounts up to £686,125 over the average adult lifetime, with £57,982 going on energy bills alone.

The study was commissioned by Compare the Market, with a spokesman saying: "Bills account for a large amount of our outgoings, and yet a number of Brits don’t even know what they’re paying for."

"Whether it is their energy bills or another supplier, some people even confess to not reading bills as a result of the complexity of understanding them."

A whopping £48,800 will be spent on entertainment and communication, while insurance proves to be costly, coming to £52,106 over the lifetime. Car insurance creates the biggest dent in the wallet of these payments too, coming to £16,187.

Council tax payments also comes to £118 each money, amounting to £85,450 over an adult's lifetime.

On top of this, £66,144 is frittered away on loan repayments, meaning there is a vicious lifecycle as nearly a quarter will use credit cards or loans to pay the bills.

There was also a general lack of understanding over what bills cover, with one sixth reckoning payments are harder to understand today, in comparison to previous years. The difficulty of understanding invoices means one in six won't even bother to read their statements, while half of bill payers back an appeal for energy suppliers who could make bills easier to understand. In spite of this, only 12 per cent have moved suppliers for an simpler statement.

Nearly two thirds agreed they would like to see their bills simplified.

The research was conducted via OnePoll.com, and found mobile banking was the most useful innovation to make life easier, followed by contactless payments and online grocery shopping.

A desire to simplify energy bills prompted comparethemarket.com to start a petition, backed by John Penrose, to see a change made - find out more here.

John Penrose, MP for Weston, Worle and The Villages said: "I am supporting this petition with Compare the Market as I believe that energy bills need to be simplified."

"There are millions of individuals and families across the UK left at a loose end when trying to decipher their energy bills. This is the first step to a more transparent energy industry."

"Once we have tackled this, it will give both families and individuals alike the sovereignty to make informed decisions when both changing energy supplier or querying their bills."






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