- Essential bills cost families £1,408 a month – rising by 2.9% in a year, more than double the rise in household income (1.2%)
- Bills (£16,896) now account for more than half (52%) of household income (£32,247)
- Increases in car insurance (10%), energy (8%) and petrol (3%) drive annual bills up by £468 compared to 2016
- One in ten Brits say they have no money left at the end of the month after paying all essential household bills
- With inflation at 3.0% all eyes will be on next week’s budget hoping for some relief to help keep spiralling bills under control.
Running a home today costs £16,896 a year – an increase of £468 since 2016 – according to new research from uSwitch.com, the price comparison and switching service, as essential bills rise by 2.9% in a year, adding to the financial burden of cash strapped consumers.
In the last twelve months, car insurance premiums have shot up by 10%, energy bills have risen by 8% and filling up a car with petrol now costs 3% more. The combined increase in bills across the board leaves consumers having to find an extra £468 per year, further squeezing household finances.
This rise in the cost of running a home comes as wages continue to stagnate. Recent ONS findings revealed that average annual household income has increased by £387 in the last year, which is not enough to cover the additional cost of essential household bills. This increase is leaving consumers searching for the extra cash to make ends meet, and leaving them poorer in real terms going into the traditionally expensive festive season.
With households starting to feel the pinch, our recent research on the cost of living found that one in ten consumers said they had no money left at the end of each month, after paying all of their essential household bills.
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.
“Going into the most expensive part of the year, it is unsurprising that many will be feeling the pinch and with one in ten of us getting to the end of the month broke after paying our essential bills, millions of people really need all the help they can get.
“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.”
Find out how you could save over £1,000 a year with uSwitch here.