According to a survey, younger households are more at danger of being unable to pay their bill or going into debt due to the cost of living problem while older households would see a greater income hit from rising energy expenses this winter.
The Resolution Foundation think tank’s analysis revealed that older generations, particularly the over-75s, will spend a larger portion of their income—up from 5% to 8%—on their energy costs when houses throughout Britain turn on the heat. The percentage is 5% for people under 50. Younger generations, who have faced years of stagnant income growth and expensive rents, would struggle the most to cope, the survey claims, even though senior households face a greater increase.
The typical household energy bill will be 83% more this winter than it was before the cost of living crisis hit, even with government assistance, which includes the energy price freeze, a £400 rebate on bills, and lump-sum payments for disadvantaged households. According to Molly Broome, an economist at the Resolution Foundation, “all generations are confronting issues from the growing cost of living crisis, but different generations are experiencing it in quite different ways.”
“Middle-aged people will face the biggest bill increases, and older generations will aspect the most income tension due to more, less energy active homes.
“ But it’s youngish people who are most likely to struggle to pay rising bills, because they’re less likely to own savings to fall back on – and will thus be forced to either calculate on aged musketeers or family members, or might go without heating during the coming cold rainfall. ”
Youngish homes are over to four times more likely to have repayment measures, precluding them from being suitable to circulate their energy costs unevenly over the time. near to a fifth of homes made by someone under 30 pay for gas and electricity this way, compared with about 5 of homes made by someone aged 65 and aged.