4 in 10 fear they won’t be able to pay next fuel bill

More than four out of ten people are worried they will not be able to afford to pay their next fuel bill, according to Citizens Advice (CA).

The charity released the results of new research carried out to coincide with the launch of Big Energy Week which runs from today until January 21. The study found that 43% of homeowners are concerned about covering their next gas and electricity bill and that half of all respondents expect the price of fuel to put pressure on their finances over the coming year.

CA helped more than 96,000 people who got into difficulty with fuel debt last year, but found that as many as one in three bill payers was unaware that help such as insulation grants was available from power providers.

Gillian Guy, chief executive of Citizens Advice, said: “We know hikes in prices have put extra pressure on people’s budgets at a time when money is already tight. Day in day out our Bureaux helping people who can’t afford their fuel bills.

“We’re worried that some people are struggling unnecessarily because they’re not on the best deal; live in homes that haemorrhage heat or are not getting all of the financial help available to them.”

The Big Energy Week survey also found that 53% of people were heating their homes less in an effort to cut fuel costs and that 71% of those who said their energy bills would put a strain on their finances this year also said they were worried they would not be able to pay their next fuel bill.

The figures were released days after four of the “big six” energy suppliers announced cuts to their prices. EDF Energy and npower announced 5% falls in their gas tariffs, while SSE said it would cut its gas prices by 4.5%. British Gas cut 5% from its standard electricity tariff with immediate effect last Wednesday. The reductions do little to compensate for the double-digit price hikes of 2011 and have left some analysts suggesting they may be a precursor to more rises later in the year, despite falling wholesale prices.

Energy and Climate Change Secretary Chris Huhne said: “We know that a lot of households are struggling to cope with rising energy costs. Many people could cut their gas and electricity bills by moving to a better deal with their existing supplier, switching to another supplier altogether, or by taking up home insulation offers. But we need to make sure consumers are aware of this and make it easier for them to take action to save money. That is why I am backing Big Energy Week. We want to get the advice and information out to as many consumers across the country as possible.”

Big Energy Week is supported by Consumer Focus, Which?, Energy UK, energy companies, charities, accredited switching sites, Ofgem and the government. It aims to promote ways consumers can save money on their fuel costs.

About the Author

Personal finance writer for a host of publishers around the world, Mike is an avid follower of all things personal finance. He reveals what the latest personal finance headlines really mean for you and debunks common personal finance myths.

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