Online calculator shows how much you're overpaying on bills

Understanding the Hidden Costs of Household Bills

Many UK households are unknowingly overpaying on their bills, with experts highlighting that this is often due to a phenomenon known as ‘loyalty tax.’ This occurs when long-standing customers end up paying more than new ones. A recent analysis by a smart money-saving tool has shown that families could be wasting hundreds of pounds each year, especially if they are out of contract on their services.

According to the analysis, a typical person who is out of contract on their mobile, broadband, and energy pays £781 a year more than they need to on bills. Greg Marsh, household finance expert and CEO of Nous, explained that the system is set up to be confusing and complicated, making it difficult for consumers to see if they’re getting a fair price or paying for services they don’t need.

The system is designed in such a way that it’s challenging for consumers to track their expenses.
Suppliers often make it difficult to compare deals and check contracts regularly.
Unless individuals spend hours every month checking contracts and comparing deals, they end up overpaying.

He added that the team at Nous regularly saves their customers hundreds of pounds a year on bills because they didn’t have the time or headspace to stay on top of things. Often, they had no idea how much they were wasting until they found better deals through the platform.

Real-Life Examples of Savings

One father shared his experience of discovering he had wasted £1,000 a year on his bills without realizing it. Rob Lock from Shrewsbury hadn’t spent time checking if he was paying a fair price for his contracts and whether better deals were available. When he discovered Nous, a smart AI assistant that saves households money on their bills, he found out he was overpaying by a total of £1,029 across his broadband, phone, and energy bills.

After Nous found him better deals and switched him over to new providers, Rob decided to use the money he’d saved to take his partner Carrie, 30, on their ‘bucket list holiday of a lifetime’ to Iceland.

He said: “It’s been incredible making the savings that I had especially with the phone, I can’t believe what I was paying each month and am so glad to have sorted that now.”

Rob’s biggest overpayment was on his mobile – which was costing him £700 a year alone. The father-of-one had taken out a contract which included an iPhone and Apple Watch. He had come to the end of the deal but the contract had rolled over – meaning he was essentially paying for the gadgets again.

Nous switched him to a cheap SIM-only deal, saving him £58 a month. He added: “I admit I was probably a bit lackadaisical in terms of just paying my bills and not really analysing if I was getting a great deal or not. I actually wish that Nous had come into my life sooner as they’re brilliant at monitoring everything and continually checking to ensure you’re getting the best deal.”

Tips for Saving on Your Bills

If you’re wondering if you’re among the 80% of UK households overpaying on energy bills, there are strategies you can use to save hundreds. Experts suggest that a simple switch in your mobile plan could save you over £300 this year. Similarly, switching your broadband might be the secret to saving over £180 yearly amidst surging prices.