Three in four families worried about higher winter energy bills

More than three in four (76%) families with children at home are worried that the impact of using the heating more will lead to higher energy costs this winter, according to research by Comparethemarket.com.

More than a third (35%) of families say a large increase in energy costs over winter will lead them to cut down on other expenditures with a quarter (25%) of families will dip into savings if energy costs are much higher this winter.

With more than 2 million customers impacted by failed energy suppliers, almost half (49%) are worried about value for money from their new supplier.

If energy usage does increase due to colder weather, and costs increase significantly, more than a third (35%) of families with children at home say they will cut down on other expenditures such as food shopping and luxuries.

One in four (25%) families with children say that an increase in costs will see them dip into their savings to help cover the cost. 43% of families with children at home believe that if energy bills increase it will push them into debt with their energy provider.

Recent research from comparethemarket.com found that annual energy costs need only rise by an average of £76 to tip households with children at home into financial difficulty.

Yet Ofgem’s latest price cap level rose by £139 annually in October, pushing up prices for millions of households. For the 23% of families with children on a Standard Variable Tariff, and the 17% on a prepayment meter, the price cap increase could cause significant financial difficulty.

Ursula Gibbs, Director at comparethemarket.com, said “Understandably as we head towards winter, households are concerned about what impact rising energy costs might have on their budgets. Although the price cap has risen considerably given the current swing in wholesale energy prices, it is helping to prevent people from overpaying for their energy, meaning households will only pay so much for every unit of energy used. For anyone coming to the end of a fixed term tariff, it’s likely that the price cap will provide a safety buffer against high wholesale costs.”

“Until wholesale prices change, it’s worth waiting and seeing when better deals become available again as well as considering other ways of cutting back on costs such as with other utilities and insurance products. By shopping around online and switching, you could save on average £267 on motor insurance and £110 on home insurance, which could help offset the increasing energy bills”