It’s no secret that the UK is currently going through a tough time right now, with a recession on its way and further rising living costs playing havoc amongst all households. Whilst it will be difficult to budget exactly for what’s ahead, having an understanding of the average increase in household bills will help you prepare for what’s set out to be a very challenging winter. As a direct lender of quick loans, we know that when the unexpected happens, you still need to ensure your essential household bills are maintained. So, without further ado, here’s some more information about the average household bill prices.
Your household bills may include anything from your mortgage repayments to buildings insurance, heating and electricity, water, contents insurance, council tax, broadband and your TV licence. Together, the cost of your monthly bill payments can add up to quite the sum and may leave you in a challenging position.
Whilst you can prepare for some of these costs, others may be trickier to navigate, meaning that you may sometimes be faced with the unexpected with little to no warning. With that in mind, it’s always a good idea to keep track of your finances and set aside a sum of money to accommodate your bills in addition to having a safety net available should you ever need it.
With the average monthly mortgage payment in the UK expected to fall between the £600-£700 region, many households are being put under pressure by the risk that their repayments will rise again with the Bank of England increasing the SMR from 5.74% to 6.49% only this month. Other bills, including energy bills, have also risen by 80% due to the ongoing issues associated with wholesale energy costs and suppliers meaning that some households could now be paying £82 per month.
It’s not just our electric bills that are being impacted, but our water bills too. In some areas of the UK, homeowners have seen their water costs rise by 1.7% which is the equivalent of £246 a year or £23 per month. Plus, with further aims to reduce untreated sewage leaking into our rivers, average sewage bills have also increased and are likely to rise by a further £42 a year by 2050.
The average increase in household bills is shocking, leaving many prioritising their payments and choosing to put on warmer clothes rather than putting the heating on to reduce their energy bill. Despite the government's current support, offering households £400 off their electricity bill as part of the new Energy Bills Support Scheme. However, the instalments are only currently available between October 2022–March 2023 so, whilst it will provide families with some relief over the coming months, it won’t last forever.
Further household bills are expected to increase in the next year, with further changes expected to be made to mortgage repayments, rent and energy and water bills in the coming months. Whilst the figures aren’t final, increases are expected to occur within the region of at least 80% with the average household paying almost double the promised amount for gas and electricity annually.
If you’re having trouble paying your bills or loans, it’s important to understand the options available to you and at what cost. Through expressing your concern about paying your bills early, you are providing lenders or creditors with the opportunity to compile a new plan of action to support you meaning that you will likely be at less serious risk than leaving them unpaid.
Whilst it can be challenging to determine what bills you need to pay first, always focus on ensuring your energy bills, council tax and housing costs are covered first. These are the most important bills you need to pay as soon as you can as they have the highest risk behind them which, if left unpaid, could lead to losing your possessions or going to court at your own cost.
With the average cost of household bills for 2023 expected to continue to rise, now is the perfect time to seek support if you are struggling to keep up with the demand of your bills. By seeking expert advice, you can set yourself on a path to greater financial resilience, helping to resolve the issues you are facing which offers added bonuses such as improved wellbeing and confidence whilst reducing the risk associated with missing payments which could result in penalty fees, enhanced interest, and lower credit scores.
With bills rising, the last thing you need is an emergency bill or expense to make the situation more complex. Whilst many may turn to payday loans to seek financial help, we can provide an alternative here at Fast Loan UK. If you have little to no savings available and no other available options to resolve a financial emergency, we may be able to help you with short term loans if eligible. To start an application today, click apply now.