The analysis also reveals that the average price increase in the last decade between council tax, TV, phone & broadband, gas, water and electricity is 81% – over twice as fast as the 37% increase in inflation as measured by the Retail Prices Index (RPI) over the same period.
Gas prices are the biggest driver of household bill increases, rising 185% in the last 10 years. Electricity has more than doubled (up 120%) and water bills have risen by 66%. Council tax and TV, home & broadband prices have still risen, but at a slower rate than inflation.
Household bill price rises
Bill type |
Increase in prices 2004 - 2014 |
Gas |
185% |
Electricity |
120% |
Water |
66% |
Council tax |
27% |
TV, phone and broadband |
6% |
Average increase |
81% |
Lifetime household bill spend
Bill type |
Estimated lifetime spend |
Council tax |
£36,875 |
Gas |
£30,555 |
Electricity |
£30,472 |
Water |
£21,819 |
TV, phone and broadband |
£18,226 |
Total |
£137,948 |
Further research commissioned by Santander to support its 1|2|3 Current Account, which pays cashback on essential household bills, found that one in eight (13%) bill payers have never supplied a meter reading or couldn’t remember the last time they gave one for either their gas and/or electricity. On average, the last time bill payers reviewed their providers for a better offer was more than a year ago (13 months) which means households could potentially be missing out on hundreds of pounds worth of savings as a result of these factors.
Matt Hall, Director of Banking at Santander, said: “By being savvy, people can potentially save a small fortune on household bills over the course of a lifetime as these make up a significant amount of household income.
Costs can be reduced by regularly reviewing suppliers to make sure bill payers are getting a good deal, and there are also one-off changes that will help to reduce costs. For instance, many suppliers offer a discount for paperless bills or paying by direct debit and Santander’s 1|2|3 Current Account pays up to 3% cashback on essential household bills. These things combined could create huge savings over time.”