25% ‘cannot cope with rise in energy cost’

A QUARTER of people surveyed said they will not be able to cope with rising energy costs this winter, with some saying they will have to turn to moneylenders.

There has been a 2% increase in people who said that they have just €70 left over each month after paying their bills.

As the colder months draw near, an Irish League of Credit Unions (ILCU) survey shows that 15% of people will have to dip into their savings to cover increases in energy bills.

There is major concern about the upcoming budget, with nine out of 10 people worried about what measures might be announced.

Two thirds of people surveyed feel their disposable income has reduced since this time last year. The findings show, in September, 8% were unable to cover essential bills. There has also been a jump in those with nothing left after they pay their bills, up from 7% in June to 12% in September.

Worryingly, 5% of people surveyed said they will be forced to pay bills on credit cards and 2% said they will turn to moneylenders.

Almost half of Irish adults said they are finding it difficult to save money.

However, there has been a slight increase in those who are likely to save (36%) and an increase in the amount saved, from €195 in June to €210 in September.

ILCU chief Kieron Brennan said the survey shows disposable income continues to shrink.

“Like our tracker in June, this third round is a further indication of just how hard the ordinary people of Ireland are being hit by increasing household expenses,” he said. “Of greatest concern are the impending increases to energy bills which will hit families hard in the coming months.”

There has been a slight drop to 83% in September, from 85% in June, in the number of respondents with little or no income left after paying for essentials and who worry about how they will cope with unforeseen expenses.

The survey also found more people are managing to pay their bills on time than three months ago.

Mr Brennan said they are urging people to stay on top of things and look across the range of energy suppliers to find an option that best suits them.

“This year’s budget is also causing much anxiety among Irish adults with many very worried about how any increases in income tax will affect their already stretched incomes,” he said.

“As we move into the winter and Christmas season, we are advising people to take a moment, sit down and look at what their expenses are likely to be over the coming three months — where are the areas that you will need to concentrate on and where can you reduce spend.”