Rising energy costs still putting pressure on stretched households

Inflation hits target for first time in four years but energy prices are up seven times the rate of earnings.

Citizens Advice Chief Executive Gillian Guy said:

“It is an encouraging sign that inflation has hit its target for the first time in four years. The reality is inflation is outstripping earnings and leading to a much higher cost of living. Since 2010, increases in energy costs alone are seven times the rate of average earnings.  

“For many of our clients, affording daily essentials is tough.  The severe squeeze on finances means Citizens Advice Bureaux expect to give out over 100,000 food vouchers this year, as the gap between income and the cost of daily essentials widens.”

Latest figures from Citizens Advice show that energy bills have risen 33.6% since October 2010 whereas average wages have risen by 4.6%, putting household budgets under increasing strain.

While energy companies have slightly reduced their price hikes people are still facing much higher energy bills.

Notes to editors

  1. This year the Citizens Advice service celebrates its 75th anniversary. We’ve planned a year of activity running from January to December 2014.  Contact the press office to find out more.

  2. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website .

  3. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.

  4. To find your local bureau in England and Wales, visit www.citizensadvice.org.uk . You can also get advice online at www.adviceguide.org.uk

  5. You can get consumer advice from the Citizens Advice consumer service on 08454 04 05 06 or 08454 04 05 05 for Welsh language speakers

  6. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 6.6 million problems from April 2012 to March 2013. For full 2012/2013 service statistics see our quarterly publication Advice trends

  7. Citizens Advice service staff are supported by more than 22,000 trained volunteers, working at over 3,000 service outlets across England and Wales.