01/09/2022
Soaring energy bills threaten to eat up 11% of salary
New research by RIFT Tax Refunds reveals that by March 2023 household bills will cost 11% of the average person’s salary.
The cost-of-living crisis continues to have a damaging impact on households across the globe. Many are already struggling to make ends meet as stagnant income and rising energy prices put pressure on homeowners and tenants.
Regulator Ofgem recently announced that the average household energy bill will hit £3,549 a year from October 2022.
The changing cost of energy bills
The tax and accounting specialists have analysed historic and projected changes in the average earnings to understand the impact of these rising prices.
In August 2020, the average salary was £31,646 meaning that annual energy bills totalled 3.3% of income. Today the average salary is £32,390, meaning bills account for 6.1% of income.
Since the average salary is not expected to increase before the end of 2022, by October, household bills will total 10.4% of salaries.
Although employers predict that there will be a 3% rise in salaries this year, this is not enough to combat inflation.
According to RIFT’s findings, the average annual household energy bill was £1,042 in August 2020. Currently,this figure sits at £1,97, which is a £929 increase over the space of 2 years.
Article courtesy of Introducer today, mortgage magazine
