As consumers start to budget for the higher prices which kicked in from the start of April across bills including energy, water and broadband, those on the lowest incomes are running out of options.
Citizens Advice research shows that households in the lowest 10% for income already spend around two fifths (41%) of their earnings – after housing – on water, energy, broadband and car insurance bills. This compares to 11% for those on middle incomes, with those in the top 10% for income spending just 5%.
This national research found single-adult households, and particularly those with children, are more likely than other groups to be spending 20% or more of their post-housing income on these bills, leaving them more exposed to price shocks.
Responding to this heightened need, Citizens Advice Ipswich is offering additional outreach at top up shops across the town, thanks to funding from a number of sources with the hope to be able to roll this out further.
Members of our income maximization team are offering energy saving and budgeting information and advice to those households at the same time they are receiving food aid.
Nicky Willshere, Chief Officer at Citizens Advice Ipswich said: “I am delighted to be able to join colleagues hosting top up shops to offer support to those members of the community in most financial need across Ipswich.
“We are also joining in with the national campaign to push for better-targeted social tariffs to protect the least well off.”
Well-targeted social tariffs and bill support schemes across water, energy, broadband and car insurance markets could save households hundreds of pounds a year, according to research commissioned by Citizens Advice and others. For example, if social tariffs reduced these essential bills by 25%, for those in the lowest 10% for income, it could bring in savings of around £13 a week or £680 a year. This would be equivalent to a boost of income (after housing costs) of around a tenth for a typical household in this group.