Household bills could be adding up to a lot more than you think

It’s probably more than you think.

Research from Santander shows that bill payers underestimated their main expenses such as council tax, utilities and TV, phone and broadband by an average of £1,459 last year.

While average annual household bill costs were estimated to be £2,528, in reality those questioned spent an average of £3,987. Bills for TV, phone and broadband outgoings were the most underestimated.

One reason why estimated and actual bill spend differs may be a lack of attention to bill statements. Almost a third (30%) of bill payers admit they do not read their statements thoroughly, while 5% do not even open their statements.

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The research also highlights that many households are struggling to cover the cost of their household bills – 34% say they can only just make ends meet, one in four admit to borrowing money or raiding their savings in order to pay their bills and 6% claim they often do not have enough or never have enough cash to pay their bills.

Matt Hall, Director of Banking at Santander, said: “It can be difficult to keep track of bills and price changes. In winter months, when bills may rise, it’s even more important to make your money go further.

“At a time when many households are reviewing their annual expenditure and trying to cut costs, it’s worth remembering that it’s often cheaper to pay your household bills by direct debit.

Santander’s research does suggest that households are taking proactive steps to monitor energy consumption and reduce costs, as one in eight (12%) have a smart meter or plan to install one.”