Energy rationing typically means limiting essentials such as heating, lighting, and the duration of baths or showers.
The figures come from Compare the Market’s latest Household Financial Confidence Tracker. It found that four out of five (79%) people are worried that cold weather will lead to higher energy costs.
It found that almost half (48%) of households feel more pessimistic about their finances compared to this time last year, with nearly one in four (24%) unable to save any money each month.
The tracker found a significant regional disparity in the proportion of people who have chosen not to turn on their heating specifically because of affordability concerns.
In Wales, 100% of those who are not heating their homes said this was due to being unable to afford it, with the figure standing at 92% in Scotland.
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In contrast, affordability issues were the cause for just 33% of people not heating their homes in the East of England, the lowest proportion.
The North East, North West, and Northern Ireland all saw about 67% of residents choosing to not turn on their heating due to being unable to afford to, while the South West and Greater London reported figures of 80% and 50% respectively.
Pessimism about finance
Almost half (48%) of those questioned felt more pessimistic about their finances compared to this time last year.
Older generations were particularly affected, with 58% of those aged 55 and older expressing low financial confidence, compared to 39% of 16-24-year-olds and 33% of 25-34-year-olds.
Compare the Market found that households are cutting back on discretionary spending to cope with the rising cost of living. More than half (52%) have reduced dining out, while 42% are spending less on clothing, and nearly 39% have scaled back on holidays.
Savings are also taking a hit. More than a third (37%) of respondents have had to cut back on saving money, with a quarter (24%) unable to save anything each month. Nearly two-thirds (64%) are dipping into their savings at least once per month to cover everyday expenses.
Guy Anker, money expert at Compare the Market, said: “These findings highlight the significant financial strain facing many households this winter. The general rise in the cost of living over the past few years has forced many people to make tough decisions, from cutting back on essential spending to relying on savings to afford everyday expenses. It’s particularly concerning to see nearly half of people feeling less confident about their finances compared to last year.
“But there are many ways people can save money to reduce the financial burden without impacting their lifestyle. Taking the time to compare prices online can help you avoid overspending by taking advantage of the best deals available across your bills and shopping.
“Of course, staying on top of your spending could also require you to make some difficult decisions on what to cut back on if you can’t get on top of your finances simply by switching, and it can be useful to create a budget and prioritise your most important outgoings in case you need to cut back elsewhere.”
