Average Cost of Household Bills for 2024

Household bills are on the rise once again. As we move into the cooler months, budgeting and allocating funds to cover these expenses is becoming increasingly challenging. With the inevitable increase in gas and electricity usage during winter, it’s essential to understand the factors driving these costs and explore ways to keep them as low as possible. As a payday loan lender, we recognise that financial emergencies can occur at inconvenient times, disrupting your budget and potentially pushing you into debt. If you find yourself struggling with unexpected expenses, we’re here to help. Learn more about payday loans here.

The Cost of Household Bills

The cost of household bills can vary significantly depending on individual usage and spending habits. Among the most common expenses are mortgage repayments, electricity, water, gas, and council tax. Typically, mortgage repayments are the largest financial commitment for most households. The amount you pay is influenced by several factors, including your mortgage rate, the term of the loan, and the total amount borrowed.

Following mortgage repayments, electricity, gas, and water bills also account for a significant portion of monthly expenses, often exceeding £200 per month. In addition to these core utilities, many households incur additional costs for services such as TV licenses and broadband, further increasing their monthly bills. When all these expenses are added together, they can quickly amount to a considerable sum, potentially putting you in a difficult financial position.

According to Ofgem, the average cost of powering a family home with gas and electricity alone is approximately £2,227.04 per year. This estimate is based on an average consumption of 17,000 kWh for gas and 4,100 kWh for electricity.

How Can I Reduce My Outgoings?

Fortunately, most household bills are not fixed and can vary based on your consumption. Here are a few strategies to help you cut down on your expenses:

1. Water Bills

Water bills are among the more costly monthly outgoings, and water companies typically adjust their rates every April. While rates usually increase, some companies may occasionally lower their charges slightly. To reduce your water bill, consider installing a water meter, which allows you to pay only for the water you use. Additionally, making small changes around your home and in your daily routine can contribute to savings. For example, switching from baths to showers or using a more efficient showerhead can significantly reduce water usage.

2. Council Tax

Many people are unaware that they may be in the wrong council tax band, resulting in them paying more than they should. It’s worth taking the time to check whether you’re paying the correct amount, as you could potentially save hundreds of pounds. To learn more about council tax and how to check your band, click here.

3. Mobile Phones

As mobile phones and contracts become increasingly expensive with the release of the latest technology, more people find themselves paying exorbitant prices. While having the latest mobile phone may be appealing, it’s often unnecessary and can strain your finances. Consider opting for a more affordable alternative and shopping around online for better deals.