Utility bills pushing families to edge
In-depth figures show the issue is compounding unemployment, mortgage repayments and medical cost problems for families.
According to the CSO’s latest national household survey, four out of every five people have cut back on what they spend in the past year.
Unemployment (44%), mortgage repayment difficulties (14%), school and college costs (32%), and medical bills (17%) are among the most obvious causes of the need to cut.
However, the figures show the “unexpected” nature of hikes to household utility bills (90%) is what those surveyed believe is finally pushing them over the edge.
The figures were revealed a day after the Commission for Energy Regulation approved a 54% increase in the public service obligation on household electricity bills to €42.87. While the rise is financially small compared with mortgage repayments, school costs and other factors, the CSO respondents said the fact they cannot plan for the arbitrary increases is causing havoc to their finances.
Partially as a result of the utility bills impact — in addition to unemployment, crippling mortgage repayments and other personal debt — the CSO said 83% of people have cut back on at least one category of spending in the last year.
This includes 51% who have cut back on basic food spending, 14% of house owners who have missed mortgage repayments, and 19% of renters who have missed monthly repayments.
One quarter of people have also cancelled health insurance, one in six have stopped paying into their pension, while 40% of all people have struggled to pay their bills regularly.
One quarter of people have been forced to use their savings to pay bills, 10% have been forced to borrow money off friends or family, while 4% have taken on a second job.
Half of those surveyed said their personal finances are worse now than 12 months ago, with just 5% suggesting there has been any upturn in fortunes.
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