Life is not always better in a couple – but it is cheaper. Singles are stung in the pocket all year round. They can spend up to £12,000 extra annually, as they are unable to split rent and bills. That figure includes the average yearly costs of having a car, with single folk footing the whole £2,230 themselves. It also includes the extra £375 they may pay for holidaying alone, and the extra tax savings that married couples might be able to make from using their Marriage Allowance. There are many extra costs that crop up for singles, from house repairs to insurance. Danni Hewson, head of financial analysis at investment firm AJ Bell, says: "People on their own need to make their money work harder. They need to find every possible loophole and take advantage of every deal."
Bills for one
A single person spends about £1,851 a month on bills and food, compared to £991 if you’re in a couple, according to financial services provider Hargreaves Lansdown. Hewson says: "If you live alone and have a spare bedroom, it’s worth considering whether you can rent it out to a lodger or on Airbnb to cover costs." The Government’s Rent A Room scheme means you can earn up to £7,500 a year tax-free from letting out a furnished room. If there is only one adult living at home, you can claim a 25 per cent reduction on council tax.
Paying for fun
You will often pay more for days out, holidays and entertainment if you can’t split costs or get a joint membership. However, singles can still take advantage of two-for-one deals by teaming up with a pal. For example, a Two Together Railcard can be shared with the person you travel most often with. You don’t need to live together. Solo holidaymakers can try asking operators to waive a single traveller supplement on package trips. The supplement makes the cost more than half the amount a couple pays. Check out websites friendshiptravel.com and solotravelerworld.com for no and low-supplement group trips. Many cruise companies now offer single cabins, too. Disney+ is following Netflix and stopping people in different households from sharing a basic account, making it more difficult for single folk to share streaming services with friends. Check if you can beat the cost with your mobile phone contract. Some O2 contracts, for example, include free Disney+ or Amazon Prime for up to for six months. It’s also possible for those with standard or premium Netflix plans to add an extra member outside their household for £4.99 a month.
Dining alone
Single shoppers may pay more for groceries, as couples and families can buy more cost-effective bigger packs. For example, a 400g beef lasagne for one from Sainsbury’s costs £3.25 – that’s £8.13 a kilo – while a 1.5kg family pack for four is £6.75 – almost half the price at £4.50 a kilo. Consumer expert Scott Dixon, 53, says: "Large bags of fruit and vegetables, like a huge bag of potatoes, are often competitively priced for families but unsuitable for single people." The freezer is a singleton’s best friend. Just get into the habit of batch-cooking and freezing leftovers. Or try buying food at your local market or butcher where you can choose as little as you want without a premium. Scott says: "I batch-cook and freeze. I pick up reduced-to-clear food and shop later in the afternoons and evenings to catch the best deals."
Single parent families
On top of facing all the other higher costs of single life, lone parents may also find themselves penalised when it comes to child benefit. The payment is reduced for anyone earning more than £50,000 and cut completely over £60,000. So, a single parent with a household income of £51,000 loses out, while a couple earning £49,000 each – to make a household income of £98,000 – get the full benefit. Victoria Benson, from Gingerbread, the charity for single-parent families, says: "We need an end to policies that penalise households with only one income." Call the Gingerbread helpline on 0808 802 0925 to check what support you might be entitled to, such as free childcare. Thousands of working parents miss out on tax-free childcare for under-12s, for example, where for every £8 you pay your childcare provider, the Government will pay £2.
Older people on their own
Around 25 per cent of single pensioners live in relative poverty, with one in five having no other income apart from the state pension and benefits. Yet the charity Independent Age helps callers to its helpline find an average of £4,000 a year in financial support. If you have a disability benefit and receive a means-tested benefit, check whether you qualify for the severe disability addition, worth up to £76.40 a week. It is worth asking your energy and broadband providers if you can get a cheaper social tariff. And check you are receiving all the support you are entitled to with a benefits calculator at turn2us.org.uk or by calling Independent Age on 0800 319 6789.
Energy switch speed-up bid
Millions of energy customers could be due cash thanks to a change to switching rules. From April 1, regulator Ofgem has told suppliers to speed up the time it takes to switch households to a new firm or pay compensation. Under the new rules, suppliers will have to pay customers £30 if they are left waiting to transfer for more than five working days. Currently the compensation only kicks in after 15 working days. The change is only for households or those who run a business from home and are on a domestic tariff. Deputy director for retail systems and processes at Ofgem, Melissa Giordano said: "Customers who see better energy deals on the market or experience poor service must be able to move energy supplier – and quickly." Ofgem’s latest change will empower customers to "take control of their energy bills". To change suppliers, simply pick a new one and contact them. You do not need to tell your current provider you are leaving – your new one will do this for you.
Council tax rising by up to 10%
Households could see their council tax bills rise by as much as £200 this April. Four councils – Thurrock, Woking, Slough and Birmingham – have been given the green light to hike the levy by ten per cent, double the usual maximum increase. It comes as the Government confirmed this week that most local authorities will be allowed to raise the bill by five per cent. This equates to £103 extra a year for the typical Band D property, which is currently £2,065. For the areas handed special permission to hike them by more, households face bill increases of up to £206.50. Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: "Additional rises have been granted to these councils because their finances are in such a desperate state they need the additional cash to continue." Communities Secretary Michael Gove warned that all councils implementing extra increases "should take steps to mitigate the impact on those least able to pay". Single people, retirees and low-income households or those receiving benefits may be eligible for a council tax reduction.
