Do you know what you're paying for household bills?

Householders underestimate their annual bills by an average of £1,459 each - one reason so many are struggling.

New research from Santander Current Accounts has revealed that while bill payers think they're paying £2,528 per year for council tax, utilities, TV, phone and broadband, they're actually spending an average of £3,987.

We're most deluded when it comes to TV, phone and broadband bills, with people thanking they're paying less than half of the true amount.

"It can be difficult to keep track of bills and price changes," says Matt Hall, Santander's director of banking - who, as you'd expect, advocates paying by direct debit.

"In winter months, when bills may rise, it's even more important to make your money go further," he says.

One reason why people get the cost of their bills so wrong may be a lack of attention to bill statements, says Santander. Almost a third of bill payers admit they don't read their statements thoroughly - and one in twenty say they don't even open them.

The good news is that many households do seem to be trying to keep track, with one in eight saying they already have a smart meter or plan to install one.
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And the research also highlights just how many households are struggling to cover the cost of their bills.

More than a third say they can only just make ends meet, and a quarter admit to borrowing money or raiding their savings in order to pay their bills. Ten percent say they've taken out a payday loan to cover bills, and 3% have even raided their childrens's savings.

Despite all this, 6% claim they often do not have enough - or never have enough - to pay their bills.

Earlier this month, energy companies were urged to cut their charges, with wholesale gas and electricity costs at an all-time low.

"The big energy companies are benefiting from falling gas prices and still too many families are paying massive energy bills," said shadow energy secretary Lisa Nandy.

Comparison website energyhelpline.com said loyal energy consumers were being short changed by £3 billion on their energy bills.

"Energy companies could be doing much more to slash prices for consumers. Over the last two years, wholesale gas prices have come down 51% and electricity has come down 33%," says co-founder Mark Todd.

"This could have been passed through as price cuts of around 25% on gas and 11% on electricity for UK households, yet all loyal customers have seen is an average of 5% off gas bills and nothing off electricity bills. It's an absolute scandal that larger price cuts have not been passed on."

How households underestimate their bills (estimated spend/actual spend)
TV/phone/broadband: £514 (£1,100)
Council tax: £754 (£1,121)
Gas: £450 (£658)
Electricity: £497 (£680)
Water: £313 (£428)
Total: £2,528 (£3987)