Householders are underestimating their main bills by nearly £500 during a time of significant price rises, according to research published by Santander bank yesterday.

More than 2,000 bill payers were asked by Santander Current Accounts to estimate their annual spend on their main household bills over the previous 12 months. The bank then compared the results with actual spending costs taken from figures provided by bodies such as Ofcom, Ofwat and Ofgem.

Families have underestimated the cost of their main household bills in the last year including council tax, gas and electricity by nearly £500 typically, the research suggested.