More than a quarter (27 per cent) of bill payers say an increase of more than £10 a month in energy bills could push them into debt, new research has found.
An Opinium survey of 2,000 adults was commissioned by Uswitch.com and the results have been released just days before Ofgem is expected to increase the default price cap.
A rise in wholesale energy costs saw the regulator’s chief executive issue a warning to consumers last week, with some experts estimating an increase of as much as £150.
Almost a fifth (17 per cent) of households say they have struggled to pay for their energy over the past 12 months and one in ten (11 per cent) say they could not cope with any increase in bills.
Households with an income bracket of £20,000 and under say they spend 10 per cent of their after-tax income on energy bills. One in seven (13 per cent) earning less than £20,000 are also on prepayment meters, compared to just one in 50 (two per cent) of those earning more than £40,000.
The price cap also rose in April and a third of households say their bills are higher than they were at this time last year. Uswitch said this may also be partly caused by lockdowns and people spending more time working from home, as more than a quarter of households (27 per cent) say their energy use has gone up in the past year.
Elsewhere, 14 per cent said they often worry about paying their bills and three fifths (61 per cent) of younger customers aged 18-34 say they are stressed about the thought of the price cap rising.
At the same time 30 per cent of households are planning to reduce consumption this winter in order to afford their energy bills.
Three in ten say they would reduce the temperature of the thermostat to cover costs of any increases while 24 per cent would use less hot water. Additionally 13 per cent would turn the heating off altogether and the same number said they would cut down spending on essential food.
Justina Miltienyte, energy policy expert at Uswitch.com, said: “Many people are already in a risky position financially, and it’s worrying that an increase of £10 per month in energy bills could push a quarter of households into debt.
“Unfortunately those very circumstances are likely to happen this week as Ofgem announces the increase in the default tariff price cap.”