Annual household bills fall by £70 on average since last election
People pay less now for a range of utility and finance products than they did at the time of the General Election in May 2010, according to research from comparethemarket.com.
Average annual car and home insurance bills are lower now than in 2010, with car insurance costing £106 less, home insurance £40 lower and spend on telephone bills reduced by £36 compared to four years ago.
Energy (+£88) and petrol costs (+11p per litre), as well as broadband spend (+£24), have risen since 2010.
Rates for credit cards, personal loans and fixed rate mortgages are all more favourable now than in 2010.
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 per cent fall, when many other costs have risen over the same period.
Simon McCulloch, Director of Insurance, comparethemarket.com, said: "Our research shows that, for many financial products, such as loans, credit cards and home and car insurance, consumers are paying less on average now than since the last election. 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.
“The results of our research do not necessarily represent a resounding victory for the Coalition. Costs have come down in areas where there is most competition in the market – such as motor insurance, where the benefits of shopping around are widely recognised. Consumers have become savvier over the past four years, using the internet and tools such as price comparison sites to shop around for the best prices. But, more can be done and the energy and broadband markets in particular still have a long way to go before they can be regarded as truly competitive. 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.”