Money saving tips: Expert shares tip to save ‘hundreds’ as bills rise £1,316 year on year | Personal Finance | Finance
Household bills have risen by £1,316 in the past 12 months, according to new research by Comparethemarket, which analysed the average cost of energy, home, and motor insurance to detail just how much bills have increased in the past year. However, the analysis also unveiled how people can make significant savings on these price increases, which could afford households a bill reduction of nearly £500.
The research suggested that a typical household spent £3,280 on their energy, car and home insurance in November 2022 – increasing from £1,964 in November 2021.
These bills are also £1,461 higher than in November 2020, when the average cost was £1,819.
Energy bills unsurprisingly reflected the largest proportion of the year-on-year increases, after seeing a rise of up to £1,223 on average since 2021 as a result of October 2022’s energy price guarantee.
This is while the average price of car and home insurance has increased by 14 percent and 13 percent year-on-year respectively, pushing average bills up for each from £553 and £134 in November 2021 to £629 and £151 in November 2022.
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Data from Comparethemarket’s latest Household Financial Confidence Tracker found over a third (36 percent) of households with children at home are currently struggling to afford energy bills, but when the Government’s energy price guarantee changes in April, the number rises to nearly two thirds (63 percent).
But, there is a possibility that Britons could be able to slash some cost burdens and ease the financial squeeze ahead of price increases.
Hélène Barnes, cost of living expert at Comparethemarket, said: “Millions of households will be worried about rising costs, with many struggling to afford their regular bills and energy prices which are at their highest level in years.”
Ms Barnes explained that while the cost of energy is set to increase further when the Energy Price Guarantee rises in April 2023, “most broadband, phone and TV providers” are also expected to also raise their prices in line with inflation in April, which could leave many households facing a “big payment shock”.
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However, she said that Britons that check their regular bills to see where they could save money in advance of these price rises could save “hundreds”.
Ms Barnes explained: “Our research shows most households could save hundreds of pounds by shopping around for deals on their bills, such as car and home insurance, and could save even more looking out for deals on broadband and credit cards. Comparing prices online is one of the best ways to check you’re getting value for money. ”
Based on online independent research by Consumer Intelligence during August 2022, up to 51 percent of Comparethemarket customers were quoted far less than the average costs for energy bills, car and home insurance.
The difference makes up a £492 saving for those comparing and switching their car and home insurance through Comparethemarket.
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He continued: “Comparing prices online is one of the best ways to check you’re getting value for money. When your current package ends, your monthly charge will most likely rocket up from your fixed-term offer to the provider’s ‘standard’ price.
“This means you could be forking out a lot more than you expected if you don’t re-contract or switch to a new plan.”
According to Mr Beckett, those who are coming to the end of their contract should check what services are available at their postcode using a price comparison site, select the best-suited deal, and sign up with the provider.
He continued: “After selecting a switch-on date, you’ll receive a new router from your provider. Then it’s just a case of plugging it in and entering the router’s password. You should be online in a matter of minutes.”