A hidden tax you can switch off at any time
You may think you know how much your insurance and utility bills cost – but could you be paying an “invisible tax” on them?
An estimated 35 million people are doing exactly that, because they’ve failed to seek out the best deals.
Experian asked 200,000 people whether they had switched providers of financial services or utilities products over the past two years – and 69.5% hadn’t done so.
The credit checking company likens this lack of shopping around to an “invisible tax” – because customers are paying over the odds without realising.
Some people may see switching as a hassle, or perhaps they don’t think it will save them that much money.
But the cost could add up considerably over a lifetime, particularly if you have several products that haven’t been switched in a while.
The Competition and Markets Authority said that people could save £92 a year on average by switching to a deal that better suited their needs.
And Ofgem has found that comparing and switching supplier or energy tariff could make a big difference to your gas and electricity bills.
Potential annual savings of around £300 were available, according to the watchdog.
Nick Hill, an expert at the Money Advice Service, spent just 20 minutes switching energy providers recently, believing it could save him around £160 this year. He said: “Shopping around for utilities and financial products is an incredibly important step towards managing money effectively.
“Finding the best deal to free up a little extra cash each month can make a huge difference to people’s quality of life, for a comparatively small amount of effort.
“We’d encourage consumers to be aware of how much they’re paying and to shop around for the best deal.”
Ofgem has tips on how to become an expert “energy shopper” on its website at Tiny.cc/betterdeal.