Nearly one in three have no money set aside for increased energy costs

New research by Credit Karma has found that nearly one in three (30%) have no money set aside for increased energy costs this winter.

The cost of living crisis threatens the Christmases of 11 million people as concerns over energy prices prompt them to cancel or abandon plans.

The total gas and electricity used for festivities, such as roasting a turkey, listening to music and running Christmas lights is set to add another £24 to the bill2 – that’s on top of increased standing charges, making it a whopping 173% more for gas and 84% higher for electricity than recorded over the holidays last year.3

As such, nearly a quarter (23%) will need to rely on credit, such as personal loans, credit cards and overdrafts to cover Christmas expenses, including food and presents, and the majority (52%) admit they’ll need to limit their energy consumption over the holidays as prices for gas and electricity continue to rise.

Others will need help from friends and family, nearly a quarter (22%) will be reliant on guests chipping in financially, or bringing things with them, such as food or decorations to keep costs down, while others are hoping to attend gatherings hosted by friends and family to avoid the expense of Christmas hosting altogether.4

Ziad El Baba, General Manager at Credit Karma said “With many households struggling to cover even basic expenses at the moment, plans for Christmas are understandably far from front of mind. For those struggling to cover payments, or worried about how they’ll manage to keep up following the next energy price cap in January, consider keeping an open dialogue with creditors and utilities providers, and taking advantage of any government help you’re entitled to.”