Single Life More Expensive than Being Coupled Up

22-Jul-2010

Although the grass inevitably always appears greener on the other side, there are some ways in which it definitely does not pay to be single.  New research from comparison website uSwitch reveals that living alone is can come with a significant financial penalty: as much as 250,000 GBP over a lifetime.  This 'singles tax' is largely the result of living in an increasingly expensive country on a single income, and it affects every aspect of daily life, from bills and food to social life.

The study found that the necessary annual expenses such as housing costs, bills and buying food cost the average single person 11,904 GBP a year.  However, someone living with a spouse or partner pays just 7,110 GBP a year - a whole 67% less, and that's just on the essentials.  

The largest expense is predictably the monthly mortgage or rent payment, which costs a single person 7,080 GBP a year and someone living with a partner just 3,804 GBP.  The average amount spent on council tax each month by a singleton is 90 GBP, whereas for a couple it works out to an average of 126 GBP or 63 GBP per person.

Paying more for the essentials has a knock-on effect on the more fun things in life, the study also reveals.  43% of singles 'rarely or never' go on holidays, compared with 21% of those living with their other half.  And when it comes to the holidays, couples spend 1,339 GBP per person per year on average whilst singles spend 890 GBP.  The myth of the single party lifestyle also seems to have been dispelled, with single people spending 732 GBP per year on their social lives, or 432 GBP less than those with live-in partners.

According to the Office of National Statistics, 29% of households are made up of only one person.  However, the number of single households is set to rise to 9.5million over the next ten years, meaning that more single Brits will be finding themselves out of pocket compared to their coupled-up counterparts.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says:  "The huge increase in the number of single person households is not just a worry in terms of housing stock, it will also have a serious impact on lifestyle and spending in this country. Increasingly we are seeing evidence that to enjoy a good quality of life in Britain, a household needs two incomes.

"Those who live alone face a range of disadvantages from the nominal 25% discount on their council tax to meeting household bills single handed and having to pay a surcharge on holidays. Making the most of whatever subsidies exist and keeping on top of your personal finances and bills will be key. [�?�¢�?�?�?�¦] Whether you are running a household on your own through choice or circumstance, keeping a lid on the essentials will free up more of your money for the nicer things in life."

However there are some financial advantages to living alone, such as the fact that your utility bills should be much lower than those of the 'average' household.  To maximise the benefit of this, move to a water meter and switch to a gas and electricity plan where you only pay for what you use (rather than paying over the odds for an estimate).  You can further reduce your bills by paying via monthly direct debit and opting for electronic, rather than paper bills.

You could be paying far too much for your utilities, whether you're in a couple or free and single! Click here to compare gas and electricity rates in your local area.