People Struggling With Energy Costs Should Help Themselves

Millions of Britons are in fuel poverty, new research reveals.

Figures released by uSwitch shows that an estimated 4.5 million people are struggling to meet the cost of utility bills. Following the recent price hikes by five major energy firms, 500,000 consumers were indicated as recently developing problems with heating their home. Data from the price comparison site also stated that just under a third (29 per cent) of Britons feel that they have had to cut back on warming their homes due to money worries. Meanwhile, one in ten report that they are unable to afford to heat up their property.

Although 4.5 million people are currently in a state of fuel poverty, less than 400,000 consumers are revealed to be on a social tariff. Despite these deals often being created for people struggling with their heating costs, uSwitch suggested that some social offers are actually more expensive than mainstream price plans.

Due to difficulties in paying utility bills it is also possible that consumers could develop problems with meeting other sources of financial demand such as personal loans and rent repayments.

Findings from the price comparison website also revealed that 36 per cent of Britons spend between 61 pounds and 100 pounds per month on energy. For one in ten people, however, such expenditure rises beyond the 100 pounds mark. A quarter of households, meanwhile, shell out between 41 pounds and 60 pounds.

And despite the Winter Fuel Allowance being created to help older people meet utility bills, it was claimed that such a grant is failing to keep up with energy price increases. Currently, the maximum allowance stands at 200 pounds - a figure that has stayed consistent since 2003. During this period of time the proportion of the household bill that the allowance covers has fallen from 34.5 per cent to 19.5 per cent.

Ann Robinson, director of consumer policy at uSwitch, said: “Rather than reinventing the wheel, the government should increase the Winter Fuel Allowance to give immediate relief to the elderly. It should then work with the energy providers to realise the full potential of social tariffs. There must be an industry standard on social tariffs, clear criteria over which consumers should qualify and a guarantee from suppliers that people on social tariffs will always be paying the lowest available price.

“This would remove the guess work and provide vulnerable households with a real way out of fuel poverty. And of course, households have to start helping themselves too. Vulnerable customers should talk to their supplier to find out what help is available now.” She added that if people are unable to do this they should compare the various energy offers around and change to a cheaper supplier.

Consumers also looking to reduce pressure on their finances may wish to take out a low-cost loan. In doing so, borrowers may find they can meet various spending commitments at once and are left with enough disposable income to allow them to heat their home during the colder months without having to worry about money. Moving energy provider may also help reduce monetary worries, as Georgina Walsh, energywatch spokesperson, recently claimed that switching could often save homeowners around 100 pounds. She added that following a series of utility price increases, now is an ideal time for homeowners to be active in reducing money pressures they may come under.

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