Brits pay £126 a year in hidden fees, survey finds

A survey of 2,000 adults has identified the top 10 everyday costs Brits consider overpriced, with energy standing charges named by 39% as among the worst money-grabbers, followed by shrinkflation (33%) and airport drop-off fees (30%). TV licences (30%) and council tax (29%) also ranked highly, while train tickets (19%), phone tariffs (8%), and out-of-bundle costs (7%) featured in the list.

Estimated cost of hidden fees

The research, commissioned by iD Mobile for its Mugsville campaign, found that hidden fees, unexpected charges, and surcharges cost the average adult an estimated £126 a year. Those in Scotland estimated losing the most at £146.70 annually, with Londoners close behind at £139.30.

Nearly eight in 10 (78%) admitted they often or sometimes paid charges they felt were unfair because they had no practical alternative. A further 72% believed hidden fees and unexpected price hikes had become worse over the last five years, and 52% felt Britain was becoming a place where such costs were simply part of life.

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Impact on spending habits

According to OnePoll.com figures, 40% reckoned businesses had become better at disguising price rises and extra charges. The frustration was changing spending habits: 38% of those who had encountered hidden fees abandoned an online order after being stung by an unexpected fee at checkout. Additionally, 55% of those who checked their mobile phone bill had been surprised by an unexpected charge at least once.

If they could claw back the money lost to hidden fees each year, almost half would put it into savings, while three in 10 would use it to cover everyday household bills.

Reaction from iD Mobile

Lewis Henry from iD Mobile, which offers inclusive roaming in 50 destinations and free data rollover as standard, said: “Hidden fees and surprise charges have become something many of us simply expect to encounter, whether we’re booking travel, paying household bills, or shopping online.

“Our research shows consumers feel increasingly resigned to paying more and getting less in return, and most of us have simply stopped questioning it. That’s exactly the world we’re exposing with Mugsville, a place where hidden fees or high prices are just ‘the norm’.

“We believe Britain deserves better, which is why we ensure our plans aren’t just great value for money, but also come with added benefits you’ll actually use.”