Single people living alone are paying £7,564 more in living expenses each year than members of a co-habiting couple, according to new statistics.
They are typically forking out more than £360 more in household bills than those living with a partner, according to research from credit card and loan company Ocean Finance, while groceries cost them more than £90 extra each month.
The data suggests that the increasing cost of living crisis could hit single people harder than those in relationships, as more of their income goes towards essential costs.
Single-person households are likely to be the worst affected by the cost of living increases, as research suggests single Britons are already £7,500 worse off than couples each year
The cost of living has soared in recent months, with the UK’s annual rate of inflation hitting a near-30 year high of 5.5 per cent in February and set to go higher.
A key driver of this has been energy bills, which are set to increase by more than 50 per cent for many households from April after Ofgem increased the cap on default tariffs to £1,971 per year.
Other household bills are also on the rise, with council tax going up by up to £57 a year on the average Band D home from April and fixed mortgage rates increasing for those who need to move or remortgage.
The research shows that single-person households are already spending £7,564.50 more on living costs every year than their couple counterparts, meaning they could be less able to cope with such rises.
Expenses | Couples (cost per person) | Single | Difference |
---|---|---|---|
Bills | £593.28 | £956.48 | +£363.20 |
Food shop | £200.09 | £290.24 | +£90.15 |
Recreational | £201.61 | £257.66 | +£56.05 |
Holidays | £80.02 | £135.45 | +£55.43 |
Entertainment | £48.36 | £82.09 | +£33.73 |
Eating out | £157.27 | £189.01 | +£31.74 |
Total | £1,280.63 | £1,910.93 | +£630.30 |
Source: Ocean Finance |
The Office of National Statistics estimates that there are nearly 8million single-occupancy households in the UK.
The ‘single tax’ is most evident when it comes to property and household bills, according to Ocean Finance.
The combination of the rent or mortgage, utilities and council tax currently cost a single-person household £957 a month, whereas members of a co-habiting couple typically pay £350 less, at just £593 each.
The rent or mortgage accounted for a large chunk of the difference, with a single person paying, on average, £674 a month and a couple paying £433 per person.
Council tax was also a major contributor despite the 25 per cent discount for a single-person household. For the average Band D bill, singles paid £113.60 a month, but individuals with partners paid just £75.75 each.
How can singles save on essential bills?
Although many of the additional costs of single life are unavoidable, there are some ways that people living alone can save.
Helen Fox, senior content producer at Ocean Finance said: ‘The main reason for the difference in price between singles and their coupled-up counterparts is due to the price of bills.
‘To reduce your household bills, we recommend looking for a better deal when it comes to any tariffs that you have.
‘For example, changing your water bill to a meter rather than a set fee can give you a significant reduction.
‘And, don’t forget to check your eligibility for the single person discount on council tax.
‘Prices are also generally higher for smaller portions of food, which are often the preferred option for singles to minimise waste.
‘We, therefore, recommend buying in bulk and batch cooking your food to help cut down your costs, while still not wasting any food.’
Tips to reduce monthly outgoings when living alone
1. Apply for single-living discount on your council tax bill, saving you 25 per cent
2. Ask your water company to install a water meter, so you only pay for what you use
3. Ask your electricity supplier for a smart meter and turn appliances off when not in use
4. Switch to energy efficient light bulbs, and buy more energy efficient household appliances when these need replacing
5. Keep the same phone and switch to sim-only when your contract is up
6. You don’t need to pay a TV license if you don’t watch live TV or BBC iPlayer
7. If you need 2 or more prescriptions a month you can apply for a prepayment certificate to save at least £10 a month