Utility price cuts are just 'a drop in the ocean'

23 March 2010

More than 20 per cent of UK households cannot afford to heat their homes despite a raft of recent price cuts, according to new research.

Data from a recently-published report from price comparison service moneysupermarket.com revealed that more than three-quarters of energy customers struggle to pay their bills.

The organisation claimed the figures are evidence that the price cuts announced by the "big six" suppliers "don't cut it".

Scott Byrom, utilities manager at the website, said: "It's clear the high energy bills we saw over the coldest winter for 30 years were far beyond what many Brits can afford.

"While we have seen providers beginning to reduce their prices, these cuts have unfortunately been a drop in the ocean and to add insult to injury most of the price reductions announced recently don't come into effect until the end of the month, once the worst of the cold period is well and truly over."

High energy prices could cause particular concern for the UK's elderly population as they traditionally use a larger proportion of their income to heat their homes.

Those who have invested in property could ease their financial burdens with money taken from the value of their home through an equity release scheme.