Young people most likely to have rationed energy over winter

Young people aged 18 to 34 are the most likely to have rationed their energy usage over the past winter due to concerns about costs, new research has suggested.

A survey of 4,000 people conducted on behalf of Comparethemarket.com found more than two in five (43 per cent) households reported rationing their energy usage over the season. This figure rose to 54 per cent for those aged 18 to 34, compared with 19 per cent for those aged 65 and over.

A recent study by the comparison service found almost 30 per cent of a household’s annual energy usage is typically consumed within the first three months of the year, making it the most expensive quarter. It said Covid restrictions and the cold snap from Storm Darcy earlier this year, left the typical household facing a bill increase of £113 when compared to the usual charges for this period.

Three in ten households (29 per cent) said they are not in a financial position to meet this additional cost. A third of people aged 25 to 34 (33 per cent) said their finances cannot stretch to cover a rise in bills, compared with 18 per cent of 65 to 74-year-olds.

Almost six in ten (58 per cent) households said they are worried about the impact colder weather and lockdown has had on their energy bills.

Younger people expressed the greatest concern, with 68 per cent of those aged 25 to 34 worried about costs. There was less concern among older households, with over-75s being the least worried (28 per cent).

Additionally, if energy bills were to rise sharply, more than a third (34 per cent) of respondents said they would consider cutting spending on food to cover their costs. A quarter said they would have to dip into their savings and 11 per cent would use a credit card to pay bills.

Two fifths (41 per cent) of young people aged 25 to 34 said they would cut down on food shopping to cover their energy costs and they were the most likely age group to use a credit card (14 per cent).

Peter Earl, head of energy at Comparethemarket.com, said: “The pandemic has had far-reaching consequences, with household finances in a fragile position as a result. The double hit of a cold winter and increased energy usage with more people spending time at home has been particularly strenuous for households that were already struggling financially.

“With spring now upon us and warmer weather approaching, usage will drop off, easing the strain on finances.”