Ever wondered why your pay cheque is simply not going as far as it used to and why you are trapped in a spiral of debt? The reason might not be financial mismanagement as many experts claim.
According to a new study by the consumer group Which?, we are currently paying £410 per year more for our energy bills than a decade ago – after making provision for inflation.
The study analysed how Britons’ spending on energy has sky-rocketed by a whopping 52 per cent over the last 10 years. At 2012 prices the average electricity bill in 2003/04 was £790. Using the same price index it has now escalated to £1,200 – and this during a decade during which energy usage went down 17 per cent.
Richard Lloyd, the group’s executive director, said: “It is shocking that people are paying more despite using less.”
That is not the end of the story either. While it might be good news for landlords, tenants can certainly not be too happy that the average rent now stands at £768 per month.
While that is only 1.2 per cent higher than a year ago, the news still angered Shelter’s chief executive, Campbell Robb, who stated: “Once again, England’s nine million renters are paying a steep price for our broken housing market.”
Robb added that the fact that there is simply not enough affordable homes available for rent is forcing increasing numbers of individuals into private rental properties that they cannot really afford, leaving many of them scrambling to make a living – with virtually no promise of putting down permanent roots.