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Rising energy costs still putting pressure on stretched households

Citizens Advice

Inflation hits target for first time in four years but energy prices are up seven times the rate of earnings.

Citizens Advice Chief Executive Gillian Guy said:

“It is an encouraging sign that inflation has hit its target for the first time in four years. The reality is inflation is outstripping earnings and leading to a much higher cost of living. Since 2010, increases in energy costs alone are seven times the rate of average earnings.

“For many of our clients, affording daily essentials is tough. The severe squeeze on finances means Citizens Advice Bureaux expect to give out over 100,000 food vouchers this year, as the gap between income and the cost of daily essentials widens.”

Latest figures from Citizens Advice show that energy bills have risen 33.6% since October 2010 whereas average wages have risen by 4.6%, putting household budgets under increasing strain.

While energy companies have slightly reduced their price hikes people are still facing much higher energy bills.

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