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Household Bills

Energy prices rise eight times rate of earnings in three years

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
18/11/2013

Household energy bills have risen at a rate eight times higher than average earnings over the past three years, Citizens Advice has revealed.

Calculations found that the big six suppliers have increased their prices by a total of 36% since October 2010, while average earnings have only risen by 4.4% during the same period.

Energy firms’ prices have gone up three times the rate of inflation, which has risen by 10.2% since October 2010.

Citizens Advice fears people are racking up debts to pay for their winter energy bills as new analysis finds 28% of people who seek help with an energy problem from the charity also have a debt issue.  

Citizens Advice chief executive Gillian Guy said: “Enormous escalations in energy prices are creating a desperate situation in many households.  People find they do not have enough money coming in to pay for everyday essentials as increases in daily costs are outstripping low rises in earnings.  As we head into winter, and the latest price rises begin to kick in, more and more people are likely to reach crisis point as they struggle to heat their homes and feed their families.

“People should not have to get into debt in order to have a warm home.  Energy companies and the Government need to look at how they can reduce the pressure energy bills are putting on people’s finances.”


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