As the cost of energy rose by at least 140 percent within the past eight years, it has become the number one worry amongst Britons already cash strapped by a double dip recession. In fact, the cost of energy has increased seven times that of the average household income in the past eight years.
According to a study conducted by a leading energy comparison website, the average energy bill in the UK is now at £1,252 per year which is about 11 percent of £11,175, the average state pension for a couple.
In a poll of Britons, their main concern at the moment is the continually rising cost of energy as reported by at least 90% of respondents. This has taken the lead from those worried about an increase in food prices which is now at 77% and those worried about being able to make their mortgage repayments which accounts for 42%.
The poll also found that almost one-third of respondents stated that the cost of energy in the UK is unaffordable which is understandable when compared to the average rise in salaries. Household income has only risen 20% in eight years while the cost of energy has risen by an astounding 140%.
In 2004, the average household income was £32,812 while today it is £39,468. However, in 2004 the average annual energy bill was only at £522 while today it stands at an average of £1,252 annually. This accounts for 3.2 percent of the average household income which is twice that of the 1.6 percent of just eight years ago.
This has placed a significant dent in the amount of disposable income, which now averages £297 after all essential bills have been paid. In fact, as many as 17% report they have absolutely no disposable income left over after paying those essential bills while 27% state that the amount of disposable income has been significantly reduced because of energy bills.
Low income households are encouraged to contact their energy suppliers to see if they qualify for benefits such as free insulation. Consumers are also told to do comparison shopping to find the best tariffs in their region.
