How much do you spend on your household bills in a year? Chances are, quite a lot. Everyday bills can take a significant chunk of your household income, and over time, it can seriously add up – and when you look at it over your lifetime, it reaches an eye-watering sum.
According to research from Santander Current Accounts, UK households will spend almost £138,000 on basic household bills throughout their lifetime, and costs are rising. Their analysis found that, in the past 10 years, bills have risen at more than double the rate of inflation: the average cost of household bills has increased by 81% in the last decade, over twice as fast as the 37% increase in inflation (as measured by the Retail Prices Index) over the same period.
Perhaps unsurprisingly, gas prices are the biggest driver of household bill increases, rising by 185% in the last 10 years, closely followed by electricity costs, which have more than doubled (up 120%). Water bills have risen by 66% and council tax has increased by 27% – happily, at a slower rate than inflation – while TV, home phone & broadband costs have barely risen by comparison, up by just 6% over the period.
Despite council tax having increased at below-inflation rates, it still takes up the biggest chunk of household income, with the typical household spending an estimated £36,875 on council tax over its lifetime. Gas and electricity bills are close behind, clocking in at £30,555 and £30,472 respectively, while the typical household will spend £21,819 on water over the years. TV, phone and broadband again seems to be the most competitive of the bunch, accounting for £18,226 of lifetime household expenditure.
Overall, the figures show that you and your household will spend an impressive £137,948 on bills during your lifetime, and if that sounds like a lot, it's time to do something about it!
There are plenty of ways to cut your bills down to size, and while it can't be denied that they'll still take up a sizeable chunk of your income, any pounds you can shave off will be well worth it. Here are a few tips to consider:
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