Key bills cost households Â£2.69 billion more since EU departure announced, says MoneySuperMarket
With just over a year to go until Britain leaves the European Union, price comparison website MoneySuperMarket has analysed key household bills to show how they have changed since the referendum result.
Analysing historic car insurance, home insurance and energy bill data since June 2016 reveals that the average household is now paying almost £100 (£99.01) more than two years ago across these three categories alone – a collective bill increase of more than £2.6 billion across the UK4.
The changes haven’t gone unnoticed by the British public either, with three in five Brits (60 per cent) saying they feel as though the cost of living has risen since the referendum vote and more than two in five (42 per cent) believe they have less disposable income than two years ago.
On average, those that feel they have less disposable income noted they are worse off by £104.95 per month, over £1250 a year.
Energy bill impact
While prices have risen in all three categories for a number of reasons, energy bills have seen the steepest increase since the shock referendum result two years ago, with the cheapest average annual bill quoted through MoneySuperMarket rising over 10 per cent, from £795.23 to £882.181.
Every region in the UK has been affected by rising energy costs, with increases of at least eight per cent across the board. However, those in Scotland face the biggest price hike with the cheapest bill increasing by a staggering 13.59 per cent, from £763.59 in the summer of 2016 to £867.34 at the end of 2017 – a rise of £103.75.
Cheapest average annual dual fuel tariff available through MoneySuperMarket in 2016 vs now
Region Price in June 2016 Current price £ change % change Scotland £763.59 £867.34 £103.75 13.59% East Midlands £768.61 £872.46 £103.85 13.51% Yorkshire and the Humber £788.44 £893.56 £105.12 13.33% Wales £800.60 £896.78 £96.18 12.01% North East £767.29 £855.37 £88.08 11.48% South East £813.44 £904.77 £91.33 11.23% South West £788.42 £870.40 £81.98 10.40% East £791.04 £872.81 £81.77 10.34% North West £808.57 £884.64 £76.07 9.41% West Midlands £833.07 £910.77 £77.70 9.33% London £799.94 £864.71 £64.77 8.10%
Car insurance premiums impact
Car insurance prices have also risen sharply, with the youngest and oldest age groups impacted the most. The largest price increase is in the 20-24 age bracket, where a fully comprehensive policy has risen 14.80 per cent in less than two years, from £1,018.35 to £1,169.05.
Other age groups hit hard include those over 65 (13.08 per cent) and new drivers aged between 17 and 19 years old (11.77 per cent) who have been left an average of £159.19 worse off.
Cheapest average fully comprehensive policy available through MoneySuperMarket in 2016 vs now
Age group Price in June 2016 Current price £ change % change 20-24 £1,018.35 £1,169.05 £150.70 14.80% 65+ £243.02 £274.82 £31.80 13.08% 17-19 £1,352.80 £1,511.99 £159.19 11.77% 50-64 £275.45 £296.55 £21.11 7.66% 40-49 £386.05 £405.85 £19.81 5.13% 25-29 £772.01 £801.96 £29.95 3.88% 30-39 £573.78 £589.51 £15.73 2.74%
Home insurance premiums impact
While energy prices and car insurance have seen the biggest price rises, the cost of insuring our homes has also increased. Since June 2016, the average price quoted on a combined buildings and contents policy has increased by 1.3 per cent – rising from £116.91 to £118.433. Northern Ireland has seen the largest cost increase, from £126.31 to £131.19.
However, it’s not bad news for everyone. For those living in the North East of England, Scotland and the South East, prices have actually fallen, saving some residents as much as 5.39 percent on their home insurance.
The North East has the largest decrease with a drop of over five per cent, followed by Scotland (1.53 per cent) and the South East (0.25 per cent).
“Whatever you think of Brexit, it can’t be denied that the referendum result has created uncertainty about how the nation’s finances will be affected,” says Kevin Pratt, consumer affairs expert at MoneySuperMarket.
“The reasons behind rising energy prices and insurance premiums are many and complex, and the blame cannot be categorically laid at Brexit’s door,” he continues. “But the climate of economic uncertainty is going to persist for the foreseeable future and may intensify as the deadline for the UK’s departure from the EU draws closer.
“That will create more unease if households see their basic ‘running costs’ going inexorably upwards thanks to a range of inflationary pressures.
“In times of change, it’s important to get a firm grip on those things that lie within our control, such as household bills.
“Switching energy supplier and insurance provider are a relatively painless way to side-step price increases and potentially make big savings that will bring some relief to stretched household budgets.”