AJ Bell press comment – 16 September 2022
Laura Suter, head of personal finance at AJ Bell, comments on the latest ONS figures tracking concerns over the cost of living:
“Half of people in the UK are finding it difficult to pay their energy bills, despite the summer months generally bringing lower monthly costs and less energy use. The data shows that nearly 50% of people struggled to afford their energy bills in the past few weeks, highlighting just how difficult people are going to find this winter, when usage increases.
“Despite the new Energy Price Guarantee, many homes will still see a leap up in their costs from October. While the new guarantee, the previously-announced handouts from the Government and a potential cut to the green levies on bills will all help people, the figures lay bare just how many will still be unable to afford their bills in the next few months. Highlighting just how cash-strapped people are, a third said they wouldn’t be able to afford an unexpected expense of £850 and more than a fifth have taken on more debt or borrowed money in the past month.
“Almost a third of households said they were unable to pay their bills, with four in five people saying they were worried about the impact the rising cost of living was having. The latest figures this week showed that food inflation has hit more than 13%, and households are clearly feeling the impact of that on their finances as 95% said that they had seen their food costs rising. Understandably, people’s anxiety levels have also increased recently, with many worrying about their finances and how to meet the rising cost of living.
“All eyes will be on the new Chancellor next week as he announces Prime Minister Liz Truss’ plans to help households, through the energy price guarantee, tax cuts and slashing the green levy. Whether the changes announced will be sufficient to help people through the bleak winter ahead remains to be seen, but for households already struggling any further price rises will be unmanageable.”
