Almost half of Brits admit to not shopping around for better deals on electricity, gas and broadband – and more than a quarter confess to paying for at least one monthly bill unnecessarily.
Despite the rising cost of living the nation has bill apathy, with 45 per cent of us leaving existing utilities contracts in place year after year and 27 per cent paying direct debits for things like gym membership and TV streaming packages without wanting – or using – them anymore.
The study of 2,000 people nationwide, by electricity company Powershop UK, discovered that switching electricity and gas (20 per cent) and cancelling or changing TV and internet services (21 per cent) were among the most overlooked bills.
And with 25 per cent of people studied saying they spent up to £700 per month on household bills, controlling payments by either cancelling unwanted direct debits or becoming more savvy about switching could give more people disposable income. It is this apathy that Powershop UK is aiming to help tackle with the launch of its Easy Saver Promise to help customers achieve savings of up to £163 a year in some UK regions against average Big Six prices.
David Winter, Head of Powershop UK, which allows customers to budget by buying electricity in bundles, said: “The amount the UK spends on bills is astonishing.
“The average person in the UK has just £220.57 of disposable income left each month after bills have been paid.
“Switching provider, having more control over payments and clarity on how much is spent could free up additional cash to do some of the things we actually enjoy, rather than paying bills. With our Easy Saver Promise customers can experiment with the app safe in the knowledge they will always save. More good news is that the more they use the Powershop app, the more they could save on their electricity and get some of the best prices in the electricity market.”
The same research revealed that collectively Brits will part with almost £1.2 million on household bills in their lifetime.
The average family will shell out an eye-watering £19,142.37 every year on mortgages or rent, insurance, gas and electric.
That means over the course of the average adult lifetime of 60.3 years, they will pay out a staggering £1,156,998.41 in bills.
The biggest chunk of that goes on bills - amounting to around £520.22 a month - or £6,242.64 a year and £376,431.19 in total.
Collectively, gas, water and electricity bills come to around £1,288 every year, and more than £77,000 over the average adult’s lifetime.
The study shows the ever-increasing cost of food means the average person spends around £3,790.80 a year, that’s an incredible £228,585.24 over their lifetime.
Mortgages or rent set people back £4,620.68 annually, while the average Council tax bill amounts to £1,038.20.
Car insurance will cost an average of £750.96 a year, or £5,282.89 over 60.3 years, while motorists will spend a total of £7,506.75 on taxing their vehicle.
While using the mobile phone or landline will cost a further £456.72, which equates to £27,540.21.
Using the internet is another spend of £224.52 each year, while the luxury of Sky or cable is another £296.76.
Other insurances, such as buildings and contents, add another £229.92 to the huge annual expenditure.
The huge cost of living means the average person has just £220.57 left per month after bills have been paid to use for their own enjoyment.
Unfortunately, more than four in 10 people regularly struggle to pay their bills. Fifteen per cent of people have been known to cover bills with their overdraft, while 17 per cent will put them on the credit card.
A further 12 per cent have borrowed money from family or friends to cover unwanted bills and one in 20 have even taken out a loan.
But savvy shoppers are trying to reduce their bills – with 85 per cent trying to shop around for the best deals.
For more information please visit www.powershop.co.uk