The latest research by tax specialists, RIFT Tax Refunds, has revealed that while the average household was set to save hundreds of pounds on their energy bill due warmer temperatures and longer days, this saving will be wiped out by the energy price guarantee increase due in April.
RIFT analysed how our household energy consumption differs throughout the seasons and how much the average household could stand to save with spring fast approaching.
As it stands, the average household is currently spending £2,456 a year on gas and electricity, equating to 6.2% of the average household income.
The research by RIFT shows that our energy use is predictably at its highest in winter, accounting for an estimated 32% of our total annual energy consumption. As a result, the average household has currently been spending an average of £260 per month on energy bills.
As spring arrives, our level of energy consumption between March and May falls to 26% of the annual total. Based on the current average household energy bill of £2,456, this would see the cost of running our homes during the spring season fall to £213 per month.
That’s a saving of £47 per month for the average household, totalling £142 over the duration of the spring season.
However, with the energy price guarantee set to increase to an average of £3,000 in April any potential saving is set to be short lived, pushing the average monthly cost of our energy bill back to £260 per month.
The only silver lining for households is, that come the summer months of June, July and August, our energy consumption will fall once again, with the season accounting for the lowest level of annual consumption at 19%.
As a result, the average energy bill based on the new £3,000 price guarantee could reduce to £193 per month, a £67 monthly saving.
Of course, on the current annual energy bill of £2,456, this reduction would have been more significant, falling to £158 per month.
Previous figures released by RIFT Tax Refunds revealed that the average amount owed to UK taxpayers by HMRC has increased by 6.2%, with the average tax rebate now reaching £1,510, a significant sum that could help combat the impending increase to the energy price guarantee for the average household.
CEO of RIFT Tax Refunds, Bradley Post said, “It’s been an extremely long, hard winter for many UK households, who have had to contend with sky high energy bills at a time when they are most in need of gas and electricity to run their homes.
They may have thought that the end was in sight with the warmer, longer days ahead bringing a reduction in energy consumption and costs, but this unfortunately won’t be the case, as yet another increase in the energy price guarantee looks set to eradicate any potential saving.
This will come as a blow to those who have been stretched to breaking point due to the cost of living crisis, with the only silver lining being that this cost will, at least, remain static.
One consideration to make is whether you could be owed a tax refund by HMRC, as the number of those eligible has increased by 6.2%. With the average refund now £1,510, it’s a considerable sum that is rightfully owed and could go some way in easing the financial strain that many households are currently under.”