Relief as household bills to drop £350 this year thanks to fall in energy price cap | Personal Finance | Finance

Household bills are set to drop by on average £350 this year with the drop in costs largely thanks to the falling price of energy. Calculations by Compare the Market found average bills are to drop to £5,435 this year as of April, down from £5,785 in 2023, with costs still almost £400 more than in 2022.

With the new energy price cap from April, energy bills will fall to £1,690 a year, down from £2,500 a year ago under the energy price guarantee.

Several bills are increasing next month, with council tax for a Band D property increasing by £106 while water bills are going up by £25, as well as broadband and mobile tariffs.

Andy Hancock, chief growth officer at Compare the Market, comments: “The predicted fall in annual bills overall is a rare piece of good news following the continuous long-standing pressure on household budgets.

“The decline in the cost of energy will be welcomed by many households across the UK. However, it’s important to note that household bills are still considerably higher than two years ago.

“Shopping around for cheaper deals on household bills remains one of the best ways for anyone to try and save money.

“You could save a significant amount of money by checking for deals on your regular bills when they’re up for renewal, such as car and home insurance, broadband, and credit cards.”

The group calculated these will be the costs for an average household this year:

• Energy bills – £1,690 (down £810)
• Home insurance – £209 (up £50)
• Motor insurance – £892 (up £279)
• Water bills – £473 (up £25)
• Council tax – £2,171 (£106)

Total costs – £5,435

Broadband and mobile tariffs are increasing by up to 8.8 percent next month, as providers up their prices based on inflation plus an additional amount.

Financial journalist Martin Lewis previously wrote to the Chancellor urging him to scrap the “inflationary and anti-competitive” mid-contract price hikes in his Spring Budget, but there no new policies announced to address the issue.

Andy Aitken, co-founder and CEO of mobile provider Honest, told Express.co.uk: “These unfair price increases – like the one we’ve recently been informed of that will see millions across the UK face price hikes of up to 8.8 percent – are deeply unethical and take a serious toll on people’s finances.”

For the latest personal finance news, follow us on Twitter at @ExpressMoney_.