One in three households turning down heating amid cost of living crisis

Cost of living EMBARGOED TO 0001 WEDNESDAY JANUARY 26 Undated file photo of a person using a central heating thermostat, as a report has suggested deploying heat pumps and boosting energy efficiency should be the priority for home heating in the next decade, rather than hydrogen.
Cost of living crisis: Almost a third of adults said that their household could not afford to deal with a one-off £850 bill that comes out of the blue. Photo:PA (PA)

UK households are using less gas and electricity in attempt to cut their bills as the cost of living keeps spiralling.

In early 2022, the most common course of action to tackle the cost of living was spending less on non-essentials (51%), shopping around more (36%) and around a third of adults (34%) said they were using less fuel such as gas or electricity at home to avoid higher bills, figures from the Office of National Statistics (ONS) show.

Read more: Cost of living crisis: UK shop prices rise at highest rate since 2011

Close to a third of UK households (31%) admitted to spending less on food shopping and even essentials to cope with the cost of living.

Overall, the proportion of Britons reporting an increase in their cost of living has grown over time, with 83% of adults reported an increase in their cost of living in March 2022. This compares to 62% in November.

Almost a third (29%) of adults said that their household could not afford to deal with a one-off £850 bill that comes out of the blue. This was likely to be higher if the person was on a lower income, rented their home, did not have qualifications, or had dependent children.

Those aged between 25 and 34 were the most likely age group to report difficulties with an expense of that size, while people living in the North East were twice as likely to say the expense was unaffordable than those in London.

Myron Jobson, senior personal finance analyst at Interactive Investor, said: “The ONS data lays bare the true scale of the cost-of-living crisis which has laid waste to household budgets.

“Prices are rising at rates we have not seen in decades and keeping a lid on spending is now becoming a daily battle for many – especially for the nation’s most cash strapped individuals who simply do not have any more wriggle room to tighten their financial belts further.

“The fact that three in ten of UK adults cannot afford an unexpected, but necessary, expense of £850 suggests that many have already raided their cash buffer pots to maintain financial buoyancy - and as lockdown savings evaporate, this figure could climb higher.”

The ONS said pensioners are around half as likely as those in employment to be unable to deal with a one-off £850 bill.

Read more: Cost of living crisis: Low-income households set to lose £850 of spare cash

Olivia Kennedy, financial planner at Quilter, said: “The data illustrates a real disparity in terms of who the cost of living impacts the most heavily. 8 in 10 older adults reported that their cost of living had increased, with those aged 55-64 feeling the squeeze the most. In comparison, younger adults appear to be faring slightly better. Only 4 in 10 adults aged 16-24 had seen increased costs, while 7 in 10 of those aged 25-34 have started to feel the pinch.

“Given the chancellor’s lack of support for pensioners in his recent Spring Statement, this figure is likely to get worse. The new energy price cap will come into effect from Friday, and we will see a further rise in October. Alongside other rising prices, this will no doubt produce a big shock for households.

Jackie Mulligan, a member of the government’s High Streets Task Force and ShopAppy founder, said the data shows the “extreme gravity” of the situation facing people across the country.

She added: “The government seems completely out of touch with the reality of how hard the cost-of-living crisis is hitting people and the level of anxiety it is causing."

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