A poll of 2,000 adults has identified the top 10 list of overpriced products and services that UK consumers are most frustrated with, with energy standing charges and shrinkflation leading the way.
Energy standing charges top the list
Four in 10 (39%) named energy standing charges among the country's worst money-grabbers, while 33% said they are endlessly frustrated with shrinkflation. Three in 10 were fed up with airport drop-off fees, with TV licences (30%) and council tax (29%) close behind in the ranking of the most irritating everyday costs.
Train tickets (19%) also narrowly made the top 10, while phone tariffs (8%) and out-of-bundle costs (7%) also featured among consumers' biggest frustrations.
Hidden fees cost £126 a year
The study found hidden fees, unexpected charges and surcharges cost the average adult an estimated £126 a year. Those in Scotland say they lose the most money to hidden fees and unexpected charges, at £146.70 annually, while Londoners were close behind at £139.30.
Worryingly, 78% admitted they have 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.
Consumers feel resigned
More than half (52%) felt Britain was becoming a place where hidden fees and everyday overcharges were simply part of life. Meanwhile, 40% reckoned businesses had become better at disguising price rises and extra charges, according to OnePoll.com figures.
The frustration was changing spending habits too; of those who had ever encountered hidden fees, 38% abandoned an online order altogether after being stung by an unexpected fee at checkout. The research also revealed 55% of those who checked their phone bill had been surprised by an unexpected charge at least once.
Impact on savings and bills
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.
Lewis Henry from iD Mobile, which commissioned the research as part of its Mugsville campaign, added: “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.”
