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Two thirds of families won’t be able to pay energy bills from April

Rebecca Goodman
Written By:
Rebecca Goodman
Posted:
Updated:
19/12/2022

When the Energy Price Guarantee changes in April, 63% of families with children at home won’t be able to afford their energy bills, according to new research.

This is compared to 43% for households with no children at home.

Average bills are expected to rise to £3,000 in April, although many people will pay more than this.

They were originally set to remain at £2,500 a year for the next two winters, although the amount was increased in the Autumn Statement.

Of those households with children at home, 36% said they were already struggling with energy bills compared to 19% of households without children.

Meanwhile, 44% of those with children said they found it difficult in the last week to pay their energy bills compared to 24% without dependents at home, according to the data from Comparethemarket.

Households with children struggle to pay energy bills

Families with children at home said energy bills are their biggest worry, chosen by 76% of the 2,000 people asked by the comparison website. Food bills were a worry for 42% and fuel for 29%.

This is a 52% rise in household financial stress when compared to the first Covid lockdown in April 2020, when 29% of families with children said they were worried about paying household bills, according to the website’s household financial confidence tracker.

It comes as data shows that annual gas prices have risen 129% and electricity has risen 65.5%, according to the Office for National Statistics.

Cutting back to pay for rising costs

To pay for rising costs, 62% of those with children said they were spending less on eating out, 58% said they were spending less on clothes, and 48% had cut back on holidays.

Just under half (45%) said they were cutting back on Christmas presents this year, while 34% said they will need to take on more debt to pay for rising bills.

Ursula Gibbs, director at Comparethemarket, said: “It’s worrying that many households are having to cut back on essential spending and go into additional debt to make ends meet.

“While the energy crisis means that there are very few switchable tariffs available on the market, there are practical steps you can take to save money.

“Before further price rises come into effect in April 2023, people should check all their household bills to see where they could make savings and encourage friends and family to do the same. Comparing prices online is one of the best ways to check you’re getting value for money.”

Last week, cold weather payments were made after temperatures plummeted and YourMoney.com also explored ways in which you can get help if you’re struggling to pay your energy bills.