10 March 2005
Homeowners are under increasing pressure from mounting energy bills in the UK according to the latest Spendable Income Index from financial comparison service uSwitch.com.
The study, conducted by CEBR, revealed that 2004 witnessed the first fall in the Spendable Income Index since 1998 as essential spending, including residential energy bills, reduced consumers' spare cash supply.
And latest forecasts suggest that this decline will only worsen during 2005.
uSwitch's Spendable Income Index highlights that gas prices will rise by 12 per cent, the biggest growth in the index, whilst electricity prices will rise by seven per cent.
Each household will also have to fork out an additional £484 to service their homes during 2005, a figure up £63 on the last quarter of 2004 and £1,329 since 2002.
These statistics, in addition to anticipated rises in taxes and mortgage interest payments, paint "a gloomy picture for our finances this year", according to Andrew Salmon, managing director of uSwitch.com.
"Energy prices will be responsible for some of the biggest price rises in the index in 2005 and people are starting to feel the pinch from last year's interest rate rises on their mortgage payments," Mr Salmon said.
"What's more, we also expect significant increases in taxation once the general election is over to remedy public borrowing."
uSwitch's managing director suggested that consumers should take an active approach to prepare for these forecasts and could subsequently offset some of the rising bills.
"The onus is still very much on us Brits to take action," he added. "People will need to start tightening their belts or become savvier with their cash to offset rising costs. The message is simple, shop around and switch away from the highest charging companies."
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