Energy bills leave cash strapped Brits in the cold

Brits struggling to pay for their gas and electricity are being forced to take drastic action according to research from moneysupermarket.com.

Over three quarters (78 per cent) of people have not been using their heating as much as they would like because of the cost of their bills, or are concerned about paying for their consumption. Of that 78 per cent, a worrying one in six (17 per cent) confess they can't afford to heat their home, and just over a quarter (27 per cent) have cut back on using their central heating so are keeping warm in other ways. A third (33 per cent) admit to using their heating as much as necessary - but reveal they are anxious about how to pay the next bill, according to the research.

Scott Byrom, utilities manager at moneysupermarket.com said: "It's clear to see that sky-high energy bills have been far beyond what people can afford. Whilst encouraging, the recent 10 per cent price cut from British Gas is little relief for those struggling to make ends meet. After the unprecedented price hikes to both gas and electricity bills last summer (47 per cent for gas and 28 per cent for electricity) consumers will need to see further reductions before they can afford their bills. Our research shows that people are now resorting to drastic measures by not turning on their heating at all because they can't afford it."

Additional analysis from moneysupermarket.com found Brits typically use around 40 per cent of their annual energy consumption over winter, so despite the recent price cut from British Gas households will pay a premium for their winter usage under the old pricing plan. Pre-price cut, a customer on a standard tariff, paying an average £1295 a year by quarterly cash and cheque (QCC), could therefore face a bill of £518 at any moment.

Scott Byrom added: "Following the price cut from British Gas, we now wait with baited breath for the other providers to follow suit and reduce prices. Although reductions now won't help those with a hefty bill on its way, the knowledge that subsequent bills will be lower could come as a relief to those who are struggling.

"Some bill payers now face a real ‘catch-22' situation; those who are genuinely finding it difficult to pay their bills need to seek advice now. I advise contacting your supplier as soon as possible - they may be able to offer special social tariffs or give information and advice on other discounts available.

Others waiting for further price cuts may want to sit tight for a better deal once all the providers have shown their hand. When we have a level playing field, consumers will continue to find the best deals are online products paying monthly by direct debit."