27th November 2014
Britons are typically paying less on their bills than they did at the time of the General Election in May 2010, new research claims.
The analysis from Comparethemarket.com found that the average annual car and home insurance bills are lower now than four years ago, with car insurance costing around £106 less, home insurance £40 lower and telephone bills reduced by £36. In addition, rates for credit cards, personal loans and fixed rate mortgages are all more favourable now than in 2010
In comparison energy costs are £88 higher, petrol prices are up by 11p per litre and broadband bills are £24 up on four years ago.
Overall, across products and based on average costs, UK households spend £70 less per year on these bills today than at the start of the coalition government, equating to a 3% fall concluded the study.
Simon McCulloch, director of insurance at comparethemarket.com, said: “Overall, despite rising energy prices, average household bills have actually fallen since 2010, with people now spending £70 less in 2014 on their car and home insurance, telephone, energy and broadband bills. This doesn’t even factor in the access to cheaper loans and mortgages and lower average APR rates on credit cards, which has helped to lower monthly debt repayment bills. When it comes to running a home, it appears that rising utility bills and petrol prices are largely contributing to the ‘cost of living crisis’ debate.”
But McCulloch asserted that the research does not necessarily represent a resounding victory for the Coalition and more needs to be done, as the energy and broadband markets in particular still have a long way to go before they can be regarded as truly competitive. He added: “Energy bills remain a worry for a lot of people and mistrust remains high – hopefully with faster switching times coming into force in January, people will be able to find better deals and switch quickly away from providers they think are not offering them the best products to meet their needs.”