Running a home today costs £16,896 a year, an increase of £468 since 2016, as essential bills rise by 2.9% in a year.
Our research has discovered that in the last twelve months, the cost of car insurance premiums, energy bills, filling up a car, and several other essential bills have all increased.
Typical monthly household bills
|Type of bill||November 2016||November 2017||Percentage change|
|Energy (dual fuel) Direct Debit||£86||£93||+8.2%|
|Car insurance: Annual Premium||£52||£57||+9.6%|
Bills now count for more than half of household income
Essential bills now total £1,408 a month, a 2.9% year on year rise, an increase twice as fast as household income (which has seen a 1.2% annual rise).
The rise means that on average, essential bills (£16,896) now account for more than half of the typical household’s income (£32,247).
One in ten have no money left at the end of the month
The most recent ONS household income report found that by household incomes increased £387 in the last year, which is £81 short of meeting the £468 year on year increase in essential bills.
Our research found that one in ten said they had no money left at the end of each month, after paying all of their essential household bills.
All eyes on the budget
With inflation at 3%, all eyes will be on the budget hoping for some relief to help keep bills under control.
Tashema Jackson, money expert at uSwitch.com, says:
“The cost of running a household continues to rise and with wages failing to keep pace, cash strapped families are spending over half of their income simply to keep on top of their bills.
“The country will be desperately looking towards next week’s Autumn Budget, hoping the Chancellor will provide some much-needed relief to counteract this spiralling cost of living, and help give consumers a lift when it comes to managing their household.”
How can you try to cut your bills?
Even if your bills are rising fast there are still a few ways to cut your outgoings.
- Could you cut your gas and electricity bills? Switching energy supplier could save you £491 over year
- Could you get a get a cheaper or faster broadband deal? Compare deals on uSwitch and see if there’s a better one
- Out of contract on your current phone? Get a SIM only deal from just £5 per month
- How to clean up your finances – Switching to some new finance deals could save you hundreds a year, we look at your options for loans, credit cards, bank accounts and mortgages.
- Top ten tips for cutting the cost of car insurance – There’s a few tricks that could help you make some big savings