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Households overwhelmed by the cost of bills

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A survey carried out by Legal and General has revealed that 2.6m households in the UK are struggling with their household bills.

Over the past year the number of households that have struggled with their bills has stayed static, but remains higher comparing figures before the recession began. Now winter is here households will have to use more gas and electric due to cold temperatures which will result in higher bills.

The research found that 4.3m households are close to fuel poverty which indicates consumers are paying more than 10% of their income on gas and electricity. It was found that Wales came out on top with 31% saying they were in fuel poverty; London was second with 29% followed by West Midlands, Yorkshire and Humberside.

The amount of homeowners who said they have money left after paying their bills and debts has also dropped. Comparing 2010 to 2012 the number of households who said this fell from 50% to 44% indicating that some homeowners in the UK are left with very little once bills are paid.

The research published highlighted the worry of many households after energy companies known as the ‘Big Six’ have increased their fuel costs just as consumers are hit with winter weather. However Co-op Energy have announced they will be cutting their energy prices by 2% making its average annual dual-fuel bill £172 cheaper than other companies.

Commenting on these findings Mark Gregory, Legal & General Chief Executive Officer Savings said; “While household finances have clearly not yet fully recovered to pre-recession strength, the signs of stability in the UK economy over the last year appear to be reflected in our MoneyMood survey. 

“Not withstanding the harsh reality that just over 300,000 more households are struggling to make ends meet compared with the figures from just before the recession took hold, our latest research shows no increase in the number of homes struggling to stay out of debt compared to a year ago.”

© Copyright Autonet Insurance

By Amanda Bainbridge