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Rising energy bills a challenge as incomes remain static - 17/11/2011

Performing an energy comparison to find cheap electricity and gas deals could be vital for many people as incomes are failing to keep up with inflation.

The latest Aviva Family Finances Report revealed that, while typical costs for energy have risen by 18.8 per cent since January this year, the average person's monthly pay has increased by just £46.

This has led to many households cutting back on luxuries and non-essential spending as they struggle to meet vital needs such as keeping a home warm.

Director of workplace savings at Aviva Paul Goodwin said: "For many, 2011 has been a tough year characterised by spending cut-backs, inflationary pressures and financial worries."

The study found the cost of everyday essentials is now a concern for 61 per cent of people, while 42 per cent believe unexpected bills around the festive season will become an issue.

This week, the Trades Union Congress warned that higher energy bills could contribute to financial problems for many families this Christmas.

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