Households cut back as energy bills soar

SOARING prices of gas and electricity have led tens of millions of people in Britain to slash their energy usage to preserve cash, official data has revealed.

Out of the roughly nine in 10 people who have noticed increased prices since the end of March, 51pc, or 24m people, say they have used less gas or electricity in response, according to a survey by the Office for National Statistics (ONS). Cutbacks on non-essential goods – often an early indicator of a demand-driven recession – are even more prevalent, with 57pc reducing such spending. Meanwhile, 42pc, equivalent to 19m people, are reducing non-essential car journeys because of rocketing prices at the pump.

The figures are based on surveys of nearly 14,000 adults conducted between March and mid-june. The data lays bare the steps households are taking to cut back on spending with inflation at a 40-year high.

The squeeze on incomes is expected to intensify after increases in the Ofgem energy price cap kick in. Analysts at Investec say the cap could pass £4,000 early next year amid soaring gas prices.

Among those in England who had seen cost increases, 42pc of people in the most deprived fifth of areas reduced their spending on food and other essentials, compared to 35pc on average.