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2.5m will need loans to pay energy bills this winter

Research suggests many Brits have come to dread Christmas due to financial pressure

cold couple bundled up warm clothes

2.5m Brits are expected to take out loans to cover their utility bills

As many as 2.5 million people across the UK will need to take out a loan of some sort just to make sure they can cover their bills this year, the Independent reports.

The news provider said that homes will be hit with large price hikes that take the cost of heating their homes throughout the colder period up by as much as £120 this winter.

7m to take out a loan to cover winter costs

According to research from Circle Housing, seven million people across the UK will be faced with having to take out a loan this winter just to cover the extra costs associated with the weather and seasonal festivities.

Some 2.5 million of those will be taking out their loan, however, simply to pay their energy bills.

The big six have all increased their charges this winter – with E.ON being the last to do so just last week – meaning many customers will face price hikes of between 3% and 10% this winter.

“These figures reinforce what we are seeing on the ground as more people are using high cost credit, not for luxuries but for household essentials. While vulnerable tenants are most at risk, this report highlights how the rising costs impact all of us,” Faisel Rahman, managing director of Fair Finance, told the Independent.

Many dread Christmas

The high cost of winter essentials highlighted by the survey, is causing many Brits to worry, and far from looking forward to Christmas, one in every six dread the holiday.

Matt Gaskin, financial inclusion officer for Circle Housing said: “Christmas is always a time of year that household budgets can get stretched and people start to feel the pinch. However, with the recent rises in energy bills we are more worried than ever before that people will turn to payday lenders or loan sharks, particularly some of the most vulnerable sections of society.”

Earlier this month, it was reported that more than 90% of people are actively looking for new ways to cut their energy usage this winter in a bid to make ends meet.

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