Basic household bills have increased by an average of 43 per cent in the last decade – more than double the rate of wage growth, new research from Santander shows. Analysis of government data also reveals that bills for Council Tax, TV, phone, broadband, gas, water and electricity have, on average, increased 10 percentage points more than inflation over the past 10 years.
Gas and electricity are the biggest drivers of price increases, rising 73 per cent and 72 per cent respectively in the last decade, while water bills have increased by 41 per cent – all significantly higher than inflation at 32 per cent. Council Tax has risen by 27 per cent and TV, phone and broadband prices have all risen by 24 per cent, albeit slower than inflation but still faster than wage growth (19 per cent). Household bills continue to squeeze incomes as an eighth (13 per cent) of the average UK adult’s salary is spent paying basic domestic bills. Over the course of a lifetime, people will fork out an average £524,464 on bills, with those in London set to spend the most (£601,638), closely followed by people in the South East (£580,566).
However, it’s those living in the South West who will spend the largest proportion of their salary on basic household bills – with almost a sixth (15 per cent) of their earnings going towards them over the course of a lifetime.