The latest official figures from the UK for inflation was 3.5%, but how much of the CPI is focusing on energy because according to uSwitch.com there has been 140% increase in 10 years.
On uSwitch’s report energy costs from last year alone increased 33%, and 20% in 2011.
The study by price comparison website uSwitch.com found that the average household’s annual energy bill of £1,252 now accounts for 11 percent of a couple’s basic state pension of £11,175 a year.
The cost of energy is now the top household worry for Britons (90 percent), ahead of the rising cost of food (77 percent) and mortgage payments (42 percent).
Almost a third of consumers (32 percent) say that household energy is unaffordable in the UK, the study found.
While the average UK household income has increased by 20 percent from £32,812 in 2004 to £39,468 today, the average energy bill has risen by 140 percent, according to uSwitch figures.
Households were spending an average of £522 a year for their energy in 2004, but now pay £1,252 a year – 3.2 percent of income or double the 1.6 percent of eight years ago. Britons now have an average of £297 of disposable income left each month after all essential household bills are paid.
The study found 83 percent of people believe that rising energy bills have had an impact on their disposable income, with 17 percent of these reporting that they no longer have any disposable income as a result and 27 percent saying energy bills have reduced their disposable income dramatically.
“This is the cold reality facing households today; in less than 10 years our energy bills have rocketed by 140 percent. The break-neck speed at which energy prices have sprinted upwards has caught many people unawares. Consumers are still playing catch-up”, said Ann Robinson, director of consumer policy at uSwitch.com.
“Energy now accounts for a significant slice of household income which is why the numbers rationing their energy use have risen so steeply in recent years. But going cold or without is a short-term and potentially harmful fix and not a long-term solution”, according to Robinson.