interactive investor comments on news that some energy firms are expecting government support to be maintained at or near current levels.
Commenting on news that some energy firms are expecting government support to be maintained at or near current levels, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The rumour mill is making all the right noises for bill-payers who face paying 135% more, on average, on energy bills than they did in winter 2021-22 from April.
“The retention of the current level of support under the government’s energy price guarantee scheme would offer some respite for households facing an onslaught of heightened costs in April, with council tax, broadband, mobile phone, water and sewage bills all set to rise.
“Low-income households are particularly exposed to hikes in energy bills as they spend a higher proportion of their budget on essentials. Our research found that the poorest 10% of households face spending 26% of their budget on energy bills from April, or up to 37% of their budget if they have a big household or live in a larger home. This is up from the current levels of 16% for poorer households in an average-sized house and 25% for low-income households in a larger home.
“Consumers are still reeling from the surge in prices in recent history and with wage growth still failing to keep up with inflation, many have struggled to maintain financial resilience. So, any measures to help support consumers through the cost-of-living storm is welcome. But the fact remains that individuals will have to do most of the heavy lifting to fortify their finances. If you don’t have a budget, now is a good time to start – and stick with it.
“If you are struggling to pay your energy bills, contact your energy supplier to ask for support as your first port of call. It is worth consulting a debt advice charity such as StepChange or Turn2Us and they will go through all of your options.”
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