Rising energy bills 'contribute to decrease in disposable income'

Between 1 July 2019 and 31 December 2019, at least 10% of people who switched energy supplier for both gas & electricity with Uswitch saved £479 or more.

The rising cost of household bills mean that the UK has less disposable income to spend on luxury items.

New figures from Verdict research show that by the year 2013 households will have just 35.1 per cent of their gross income left over after paying essential bills, such as gas and electricity. This is compared with over 38 per cent which was available in 2009.

In real money terms this means that the level of disposable income available to households will drop by over £1,000 a year.

Neil Saunders, director at Verdict, said: "Mortgage rates, which are at a very low level, are set to increase. And utility bills are also likely to rise. This will all take money out of people's pockets."

Last month, consumer group Which? predicted that poorly insulated homes could see their gas and electricity bills increase by 20 per cent by the year 2020. It also revealed that 28 per cent of people are already concerned about the amount they have to pay.

One way of reducing your energy bills could be by comparing and switching supplier online which Which? believes could save households £263 per year.

Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.