Days before an expected hike in the energy price cap, one in ten households (11%) say they could not cope with any increase in bills[1]
Over a quarter of bill-payers (27%) say a £10 a month increase could force them into debt[2]
More than half of homes (53%) on standard variable tariffs and prepayment meters are stressed by just the thought of the price cap rising[3]
Households estimate their power usage is 8% higher than this time last year due to spending more time at home during lockdown[4]
Uswitch.com is encouraging households to switch now to a fixed deal to avoid market volatility and reduce bills.
More than three million households say their finances are stretched so tight that they could not cope with any increase in their bills — two days before the energy price cap rise is expected to be announced[1], according to research by Uswitch.com, the comparison and switching service.
On Friday (5 February), Ofgem will reveal how the default and prepayment energy price cap will change from 1 April. Experts expect the price cap to increase due to rising wholesale energy costs and to allow providers to cope with missed customer payments caused by the ongoing Covid-19 pandemic.
Energy customers are already feeling the strain, with households estimating that their power usage is 8% higher than this time last year due to spending more time at home during lockdown[4].
More than one in ten (11%) consumers say they could not cope if household bills were to increase[1], while over a quarter of bill-payers (27%) warn they would be forced into debt if their expenses rose by just £10[2] a month or less.
Customers on Standard Variable Tariffs (SVTs) and prepayment meters will be directly affected by an increase in the price cap.
More than half of households (53%) on SVTs and prepayment meters are stressed by the thought of the price cap rising and fear they won’t be able to pay all their bills or will have less money to spend on other things[3].
Almost three in ten people on prepayment meters (29%) say they regularly worry about paying their household bills[5], while 12% of people on SVTs have the same concern.
Uswitch.com is now encouraging households to switch to a fixed deal to avoid market volatility and reduce their energy bills.
Sarah Broomfield, energy expert at Uswitch.com, comments: “Millions of UK households have suffered financial challenges during the pandemic, and the thought of increased bills is causing many people additional stress.
“The majority of those fearing the additional burden of a rising energy price cap are people on prepayment meters and costly Standard Variable Tariffs.
“If you are on an SVT, we recommend you switch energy tariff to a fixed deal. These are far less costly than SVTs and let you fix the cost of your energy bills for a whole year.
“Anyone who is worried about getting into energy debt should contact their energy supplier as soon as possible to get advice and set up a repayment plan.”
Find out how you could save nearly £1,000 a year with Uswitch here.
FOR MORE INFORMATION
Ross Stebbing
Phone: 07827 836 709
Email: ross.stebbing@rvu.co.uk
Twitter: @UswitchPR
Notes to editors
Research conducted online by Opinium, 26 to 29 January 2021, among 2,004 adults, weighted to be nationally representative.
1. Respondents were asked ‘If your household bills increased, how much extra could you afford to pay each month without going into debt?’ 223 said £0 - I could not cope with any extra expense. 223/2004 = 11%. 11% x 27.6 million UK households = 3.07 million households could not cope with any extra expense.
2. Respondents were asked ‘If your household bills increased, how much extra could you afford to pay each month without going into debt?’ 223 said £0. 149 said £1 to £5 a month. 176 said £6 to £10. 223 + 149 + 176 = 548. 548/2004 = 27.3%.
3. Respondents were asked ‘Experts expect the energy price cap to rise in April. This price cap would affect variable tariffs and those using prepayment meters. How does this make you feel?’ 53% of those on prepayment meters of SVTs said they were either ‘Very stressed - I fear I won’t be able to pay all my bills’ or ‘Somewhat stressed - this increase will mean I have less money to spend on other things’.
4. Respondents were asked ‘How has your energy usage changed compared to this time last year?’ Average response was 8.2%.
5. Respondents were asked ‘Thinking about your current household bills, how often do you spend worrying about paying them?’ 6% of those on prepayment meters said ‘I worry about them daily’. 23% said ‘Often’. 23+6=29% of those on prepayment meters worry about them often or daily.
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.
