One in seven parents have missed a childcare or nursery charge due to higher energy costs
One in seven parents (14%) have missed a childcare payment to pay high energy costs, with nearly a fifth of households (18%) failing to make at least one important bill[1]
A quarter of households (24%) fear having to turn their heating down this winter to pay for food, with one in ten (10%) expecting to turn it off entirely[2]
One in five households (18%) have already sold belongings to help with energy bills, with two fifths (39%) cutting back on socialising this winter[3]
Two fifths of people (41%) will stop eating out to save money for energy bills, and a quarter (26%) will pause streaming subscriptions[3]
Based on current predictions, the average household will be paying approximately £47 more than last year for energy over the winter months[4]
Uswitch offers advice on the support available for those struggling to pay their bills.
One in seven parents (14%) have failed to pay a childcare or nursery charge due to higher energy costs – with nearly a fifth of households (18%) missing paying an important bill or mortgage payment in the last 12 months[1], reveals research from Uswitch.com, the comparison and switching service.
Households that failed to make payments due to high energy costs were unable to pay more than four bills on average. Aside from childcare costs, people were most likely to be unable to pay their mobile phone bill (7.4%), just above debt repayments (7.2%).
The findings come ahead of a predicted 5% increase in the energy price cap for January 1 when it is announced by Ofgem on Thursday.
| Missed payment | Proportion of households |
|---|---|
| Nursery/childcare | 14.2% |
| Mobile phone | 7.4% |
| Debt repayment | 7.2% |
| Other bill | 6.6% |
| Water bill | 6.5% |
| Council tax | 6.4% |
| TV Licence | 6% |
| Broadband | 5.9% |
| Rent | 5.3% |
| House insurance | 4.9% |
| Mortgage | 4.8% |
| Car Insurance | 4.5% |
A quarter of households (24%) fear they will have to turn their heating down this winter to save money for food, while one in ten (10%) believe they will have to turn it off entirely. Almost one in six (15%) think they will need to reduce spending on food to afford heating[2].
High energy costs have already caused one in five households (18%) to sell belongings for extra cash. Two fifths of people will be reducing spending on restaurants (41%) and fast food (40%) this winter, while a quarter will be cutting back on streaming subscriptions (26%) and giving to charity (24%)[3].
| Money-saving plan | % who have done this already | % who are planning to do this | Total who have done/will do this |
|---|---|---|---|
| Cut spending in restaurants | 24% | 18% | 41% |
| Cut spending on fast food | 24% | 16% | 40% |
| Cut spending on socialising | 22% | 17% | 39% |
| Cut spending on entertainment (cinema, leisure activities) | 22% | 16% | 38% |
| Cut spending on Christmas (including presents, food) | 14% | 22% | 36% |
| Sell clothes or belongings | 18% | 12% | 30% |
| Cut spending on haircuts and/or beauty treatments | 17% | 12% | 29% |
| Swap driving and public transport for walking and/or cycling | 17% | 10% | 27% |
| Cancel or pause streaming subscription | 15% | 12% | 26% |
| Cut spending on alcohol | 14% | 12% | 26% |
| Stop or reduce giving money to charity | 13% | 11% | 24% |
| Cancel or pause magazine subscription | 10% | 7% | 17% |
| Cut spending on children’s hobbies | 7% | 9% | 16% |
| Cancel or pause gym membership | 8% | 8% | 15% |
If energy bills rise 5% in January as predicted, the average household will be paying approximately £47 more for energy in those three months alone, as last winter they received government bill support[4].
The majority of households are on standard variable tariffs, which are particularly exposed to fluctuations in the wholesale energy market, as the price cap now changes every three months.
This quarterly price change is piling extra financial uncertainty on consumers, as it’s challenging to budget for a bill when rates can change so frequently.
The majority of households remain on standard variable rates set by the price cap, while Ofgem rules may be deterring suppliers from offering more competitive fixed deals.
Uswitch.com is advising any households struggling to check what support may be available using the eligibility checker, and offering advice on how to reduce energy costs at home over the winter.
Ben Gallizzi, energy expert at Uswitch.com, comments: “For many households, energy bills in January will be higher than they were at the same time last year if predictions ring true.
“It’s troubling to see that so many households are already struggling to pay important bills – including mortgage payments – due to challenging energy costs.
“While prices are lower than at the peak of the energy crisis, they remain well above historic levels, keeping a long-term strain on consumers during a cost of living crisis.
“If your energy account is going into debt or you are behind on your bill payments, speak to your provider as soon as possible. They should be able to help you find a solution, such as working out a more affordable payment plan.
“You may also find you are eligible for additional support such as hardship funds and other energy help schemes, so it’s worth checking to see whether you qualify.
“Households looking for an easy way to see how much energy they are using over the winter period can download Utrack, a free mobile app that lets consumers connect to their smart meter and track their energy use.”
To find out whether you might qualify for help with your energy bills use the Uswitch eligibility checker.
Notes
Research conducted online by Opinium, 10th to 14th November 2023, among 2,000 UK adults, weighted to be nationally representative.
1. Respondents were asked ‘For each of the following statements select which of these are true or false in the last 12 months?’ For each bill, statements included: ‘I have missed a payment due to high energy bills’. See first table in release.
2. Respondents were asked ‘Are you planning to do any of the following to help pay your energy bills this winter? Please select all that apply.’ See second table in release.
3. Respondents were asked ‘Did you do any of the following last winter, or do you expect you will have to do so this year?’ 10% said ‘Keep heating off entirely to save money for food.’ 24% said ‘Reduce heating to save money for food.’ 15% said ‘Reduce spending on food to save money for heating.’
4. The average household with typical consumption is predicted* to pay approximately £47 more in January to March 2024, when compared to Q1 (Jan to Mar 2023) EPG rates, including last winter’s Government Energy Bill Support of £66 per month. This is based on energy consumption over the period of January to March using current TDCVs.
*Predictions from industry analysts Cornwall Insight, issued on 16 November 2023.
About Uswitch
Uswitch is one of the UK’s top comparison websites for home services switching, including energy, broadband and mobiles.
More people go to Uswitch to switch their energy, broadband and mobile than any other site, and we have saved consumers over £2.7 billion off their bills since we launched in September 2000.
Free mobile app Utrack also helps households manage their home energy usage and make potential savings.
Uswitch is part of RVU, a group of online brands with a mission to empower consumers to make more confident home services, insurance and financial decisions.