Interactive Investor

Rising energy bills have squeezed budgets until the pips squeak

28th April 2022 11:17

Myron Jobson from interactive investor

Escalating European energy crisis set to exacerbate matters.

  • New research by Uswitch found the amount of money households owe to their energy suppliers has doubled in a year to reach £1 billion — with a quarter (23%) of consumers now in energy debt.
  • Six million households owe £188 to their energy providers on average according to the study.
  • Despite not importing much Russian gas directly, a drop in global supply will affect the international gas markets that impact the UK.

Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The increase in energy bills has squeezed many household budgets to the pip, and some simply cannot afford the heightened cost of heating their home, having hot showers and doing the laundry.

“Things are set to go from bad to worse with the energy price set to rise again in October. The escalating European energy crisis resulting from Russia’s devastating invasion of Ukraine could send prices spiralling across the continent. While the UK is not significantly dependent on Russian gas, we are tied to international gas markets that are all impacted by a drop in global supply. As such, Russia’s decision to cut Poland and Bulgaria off from its gas could pile on more pressure on consumers who are already struggling to pay energy bills.

“Higher energy bills are felt most by the poorest families who allocate the bulk of their spending to meeting these costs, and perilous for those without the cushion of savings to fall back on. It’s vital people think about how the rising cost of living could impact their financial well-being and consider what protective steps are necessary to take now to avoid money worries later.”

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