Cost of living crisis: New study reveals how much household bills could rise to in the next 10 years
Cost of living crisis: New study reveals how much household bills could rise to in the next 10 years, according to new research by BOXT.
The research, undertaken by BOXT, used government data to find the average gas and electricity bills over the last 12 years, and predict what these costs might be by 2031.
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The estimated cost of household bills in 10 years:
| Year | Average UK Electricity Bill | Average GB Gas Bill | Average Household Energy Bill |
| 2008 | £425 | £604 | £1,029 |
| 2009 | £430 | £680 | £1,110 |
| 2010 | £418 | £658 | £1,076 |
| 2011 | £453 | £719 | £1,172 |
| 2012 | £479 | £800 | £1,279 |
| 2013 | £577 | £729 | £1,306 |
| 2014 | £592 | £752 | £1,344 |
| 2015 | £583 | £714 | £1,297 |
| 2016 | £586 | £650 | £1,236 |
| 2017 | £619 | £630 | £1,249 |
| 2018 | £672 | £646 | £1,318 |
| 2019 | £713 | £663 | £1,376 |
| 2020 | £707 | £557 | £1,264 |
| 2021 | £766 | £560 | £1,326 |
| 2022 | £1,354 | ||
| 2023 | £1,383 | ||
| 2024 | £1,412 | ||
| 2025 | £1,441 | ||
| 2026 | £1,472 | ||
| 2027 | £1,503 | ||
| 2028 | £1,535 | ||
| 2029 | £1,567 | ||
| 2030 | £1,600 | ||
| 2031 | £1,634 |
Since 2008, the average household energy bill has increased on average by 2.11% each year. Between 2020 and 2021 there was a spike in price increase by 4.91%.
Today, the average British gas bill is based on a standard consumption of 15,000kWh, while in 2008 the average usage was estimated to be 18,000kWh, which could explain the decrease in average bill costs over the last 12 years.
If the overall average energy bill in Britain continues to rise at a similar rate as the last 12 years, in 5 years’ time the average bill will be £1,47. By 2031, the average energy bill will be around £1,634 per household.
The estimated cost of electricity bills in 10 years:
| Year | Standard Consumption | Average UK Electricity Bill |
| 2008 | 3,300 | £425 |
| 2009 | 3,300 | £430 |
| 2010 | 3,300 | £418 |
| 2011 | 3,300 | £453 |
| 2012 | 3,300 | £479 |
| 2013 | 3,800 | £577 |
| 2014 | 3,800 | £592 |
| 2015 | 3,800 | £583 |
| 2016 | 3,800 | £586 |
| 2017 | 3,800 | £619 |
| 2018 | 3,800 | £672 |
| 2019 | 3,800 | £713 |
| 2020 | 3,600 | £707 |
| 2021 | 3,600 | £766 |
| 2022 | estimated | £803 |
| 2023 | estimated | £841 |
| 2024 | estimated | £882 |
| 2025 | estimated | £924 |
| 2026 | estimated | £968 |
| 2027 | estimated | £1,015 |
| 2028 | estimated | £1,063 |
| 2029 | estimated | £.1,114 |
| 2030 | estimated | £1,168 |
| 2031 | estimated | £1,224 |
Looking at electricity costs over the last 12 years, we found that prices are rising by 4.8% each year on average. While we use more electricity per household today compared to 2008, the price increase is astounding.
BOXT found that the average UK electricity bill today is calculated based on usage of around 3,800kWh – a 500kWh increase from the average usage in 2008. In comparison, the average electricity bill has risen by £341.
If the average electricity bill in the UK continues to rise at a similar rate as the last 12 years, then in 5 years the average household could pay £968 and by 2031 that figure could be around £1,224.
Further Insights:
- Charging an electric vehicle: £15.10 per charge. Charging an electric car with a 60kWh battery to full charge costs around £15.10 based on an average rate of 0.28p per kWh. For those charging their electric vehicles at home, a £15.10 full charge would provide 200 miles.
- Leaving your TV on standby: £12.92 per year. A study by EcoCostSavings looked at a range of televisions to find the average energy consumption of a household TV. They found that leaving the TV on standby could cost around $16.04 per year, or £12.92.
- Drying laundry: £1.43 per cycle. Tumble drying might be one of the most convenient ways to dry your laundry, however, it could be hiking up your energy bill. Costing £1.43 per cycle, based on a rate of 0.28pKwH, it’s easy to save money by drying your clothes outside.
- Electric Shower: 40p per shower. Taking a 10-minute shower using an electric shower could cost around 40p per day. For those who shower every year, that adds up to £142, and even more if you live with others. Easy ways to save money include showering at a lower temperature and taking shorter showers.
Kindly shared by BOXT
Main article photo courtesy of Pixabay
