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Energy prices increasing 8 times faster than salaries

New research underlines the disparity between rocketing energy costs and household incomes

Salaries can't keep up with rocketing energy prices

Salaries can’t keep up with rocketing energy prices

A study carried out by Citizens Advice has found that by next month, the big six energy suppliers will have raised gas and electricity prices by 36% since October 2010.

The news is unlikely to endear energy companies to the British public as they prepare for yet another round of price hikes.

Five of the big six – British Gas, EDF, npower, ScottishPower and SSE have already announced or implemented price rises, with E.ON expected to follow imminently.

Average earnings have risen by 4.4%

Citizens Advice found that since October 2010, gas and electricity suppliers raised prices by an average of 36%. In stark contrast, average earnings have risen by just 4.4%. During the same time frame, research showed that energy prices rose by more than three times the rate of inflation.

It is worth keeping in mind that these figures have been affected by the economic crisis, which has significantly impacted salaries.

Citizens Advice said there was significant concern surrounding the growing number of people unable to maintain a decent standard of living due to the price hikes. The charity added that the amount of households asking for help had risen by 44% since the big six began announcing price rises.

‘More and more people are likely to reach crisis point’

Speaking on the rises, Chief Executive of Citizens Advice Gillian Guy said: “Enormous escalations in energy prices are creating a desperate situation in many households.

“People find they do not have enough money to pay for essentials as increases in daily costs are outstripping low rises in earnings. As we head into winter and the latest price rises begin to kick in, more and more people are likely to reach crisis point as they struggle to heat their homes and feed their families.”

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  • Fred

    It’s all those damn environmental levies that is doing this. The cost of gas and coal has been falling on global markets. US energy bills are being cut. But we are closing our cheap coal fired stations because of Carbon taxes. Absolute scandal.

  • Skint in the City

    Shocking to see it put this starkly – really highlights the size of the issue.

  • Tim

    If you have a salary then it probably doesn’t matter much. Its the poor people on fixed pension annuities that are really stuffed.

  • mary cornwall

    im going through ten pounds a day brit gas on a prepayment meter dual with elec , very cold can anyone help ? 3 bed house swapping heating to manage keeping waarm from elec to gas boiler