The 1st of April saw the energy price cap drop 12%, from £1,928 to £1,690. This means that Brits are set to be saving money on their energy bills, but with energy prices fluctuating across the country, where in UK spends the most?
Alongside this, the average worker is set to save a whopping £450 a year with cuts in National Insurance contributions.
In January this year, news broke of the rate that employees pay reducing from 12% to 10% on earnings between £12,570 and £50,270. Now, from 6th April this year, it dropped to 8%.
A new study from energy efficiency experts at Electric Radiators Direct has revealed which UK regions are forking out the most of their salary on their gas and electric bills, by working out the take home salary of 198 locations across England, Wales and Scotland and comparing them with new energy prices using those regions average energy costs.
What are Brits on average, spending on energy bills from their salary?
The findings revealed that as of the start of April, Brits are spending an average of 6.2% of their salary on energy bills, that’s £1,532 a year.
However, when compared with pre-price cap prices when Brits were spending on average 7.2% of their salary on energy bills, UK residents are now saving £209 a year.
With the cost-of-living crisis having a detrimental impact to many people’s finances, the price cap has played a major part in putting minds at ease. It’s worth mentioning, dual income households’ energy costs will be significantly reduced, meaning they are likely to save even more.
Which regions are spending the most of their salary on their energy bills?
The study found that the top three regions spending big bucks of their salary on energy bills are Wales (7% of salary), Northeast (6.7%) and Southwest (6.7%).
How does this compare with two years ago?
Luckily, it’s not all doom in gloom. When the data was compared with the same study taken in 2022, it was revealed Brits are now spending less of their salary on energy bills.
In fact, there has been almost a 3% drop in how much we spend on our energy bills, with the previous figure sitting at 9% two years ago.
In the 2022 study, Brits saw a significant spike in energy prices – with the top 10 areas spending most on bills all spending over a tenth of their salaries on energy costs!
In 2022, Rother and Cotswold, shared the top spot with 12.3% of residents’ salaries being spent on energy bills, very closely followed by Maldon at 12%.
Southend-on-Sea came second back in 2022, with residents spending 11.9% of their income to energy expenses. Not forgetting Oadby and Wigston, Hastings, and Teignbridge, each with residents spending 11.8% of their salary on energy bills.
The 2024 Spring Budget
Even with the energy price cap decrease, millions up and down the country are still struggling with the rising cost of energy bills.
This is where the spring budget comes in. Introduced in March this year, the 2024 spring budget extends a helping hand to support families who are struggling with the cost-of-living crisis.
So, what does this mean?
Along with continued cuts in fuel and alcohol duty, since the 6th April taxation reliefs such as a 2% decrease in National Insurance contributions have been in place.
In addition to this, a £500 million scheme will run from April to September, aiding those living in England with a household support fund.
What is the Household Support Fund and how can this help with bills?
If you’re struggling to afford not only your energy bills, but other necessities such as water bills, food or essential items, the household support fund is there to lend a helping hand.
Funding is aimed at anyone who’s vulnerable or cannot pay for essentials. You do not have to be getting benefits to access the household support fund. The benefits vary by area, so make sure to check in with your local council on what you are eligible for. Some benefits you may not know about are food vouchers for families during the school holidays.
Stephen Hankinson, energy efficiency expert from Electric Radiators Direct, said, “The past few years have proven tough financially for Brits, so it’s great to see a positive change in the cost of energy, reflecting nicely on the amount of our salary spent on bills.
“However, becoming energy-savvy is still more valuable than ever right now.
“Implementing small changes into your day to day lives, such as using draft excluders for added insulation, never heating empty rooms and integrating smart heating into your home will be key to saving money in the long term.”
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