Costs of running your home soar as energy bills rocket
The cost of owning and running a home in the Westcountry has reached its highest level in four years – putting household budgets under increasing strain.
Soaring energy bills were mainly to blame for yearly household bills in Devon and Cornwall peaking at £9,310 in January of this year – a 2.7 per cent annual rise and the highest figure since 2008.
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The figures from the Halifax showed the region was the fourth most expensive in the country behind Greater London, the South East and the East of England. They do not account for the additional financial costs of living in rural areas such as the high price of motoring.
Bob Drabwell, chairman of Cornwall Senior Citizens Forum, said many costs were on a "runaway train".
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"Energy bills are almost out of control," he said yesterday. "The weather hasn't been too bad but if it suddenly got worse we would back to the old question of do you heat or do you eat because you can't afford to do both.
"People are not cutting back on luxuries, they are cutting back on essentials. Prices are on a runaway train and we can't stop it. The whole thing is out of control."
The report by the Halifax, based on a range of official statistics and surveys, showed a 89 per cent of the total rise over the last year came from an average £218 hike in gas and electricity bills – deepening the problem of fuel poverty which is already acute in many areas of the region.
Electricity and gas bills have risen by 145 per cent over the last decade and at £1,653 a year they take up almost a fifth of household costs, accounting for the second biggest share of expenses, having overtaken council tax, which takes up 15 per cent of outgoings.
Household budgets have also come under intense pressure from high inflation which has driven up other living costs – exacerbated in areas like Devon and Cornwall where housing costs are high and wages low.
One effect has been the rapid growth of foodbanks in the region, which are distributing tons of food to those in need every month.
The fledgling Bideford Foodbank is already taking referrals but needs to find premises in the area before it can help.
Volunteer Terry Thorpe said people were being referred from all walks of life, not just the unemployed, and fears demand could grow further with changes to benefits for working families.
"I think that is going to have an enormous impact," she said. "There is a very big take up of working tax credits in this area because of low wages. How are they going to cope?
"It will come down to heating, eating or buying the kids a new pair of shoes. Something has to give. We live in one of the most expensive areas of the country but we don't have the wages to support it."
The Halifax report showed that since the peak of the housing market, mortgage payments have dropped as a share of housing costs over the last four years from nearly half (48%) to just over a third (37%) by January this year, although they still take up the biggest chunk of expenses.
Typical annual mortgage payments have dropped by 23 per cent or more than £1,000 over the past four years, to £3,485 in January this year, due to falls in mortgage rates as well as flat house prices.
Several lenders have also cut the amount people can borrow on an interest-only mortgage, while many have recently announced mortgage rate rises which will affect more than a million borrowers in total, blaming the increased cost of funding a mortgage.
Martin Ellis, housing economist at Halifax, said: "The typical cost of owning and running a home has increased over the past year, returning the overall level to that of four years ago.
"This has happened despite the substantial fall in mortgage payments over recent years, as all the other costs associated with home ownership have risen.
"The prospect of declining consumer prices inflation through much of 2012 may help the costs associated with running a home to ease as well, providing some welcome relief to homeowners."
Comments
by piner1988
Friday, May 11 2012, 4:44PM
“"thetalkmon" I can see you are obviously very lucky and comfortable in your lifestyle. I know many people who do shop around and change tariffs to reduce cost and in the end theyre right back where they started. It is not just the cost of bills you need to consider but also whether they have a family, child care costs, being on minimum wage (which is the most common wage in cornwall) alongside the fact that most employers will only give their workers minimal hours. And then theres the cost of food, travel, and god knows what else. I feel your reply to this article is ignorant. I feel you are only thinking of your situations and not that of the thousands of other people this article represents.”
by Yesboy1
Wednesday, April 11 2012, 8:27PM
“the water, electricity and gas companies need to make money for the foreign companies that own these . wait until we are adding the price of private health care to our house hold cost!! ( we are all donkeys allowing the coalition government to privatise the NHS - just like we allowed them to privatise the previous mentioned companies and the the railway ;-( )”
by Cerberus2010
Wednesday, April 11 2012, 7:25PM
“South West Water boss had a £40,000 pay rise last year. Many of the utility companies are now foreign owned, they all want a slice of Treasure Island”
by henryblince
Wednesday, April 11 2012, 8:32AM
“@ Terrywright1Monday
"I think 'henryblince' that you are thinking the way that the Government wants you to think"
Then you won't have any trouble finding some figures to support your view, will you. I look forward to seeing them.”
by JoyRedruth
Tuesday, April 10 2012, 11:38PM
“There is only one party which will help us here in Cornwall and that is the party which does not answer to Westminster. Home Rule now. It works for the Isle of Man and the Channel Islands. It would work here.”
by thetalkmon
Tuesday, April 10 2012, 7:38PM
“Energy companies like any other company have a right to make a profit and by making such good profits shows they are doing something right. Everyone just think how often do you compare prices and change supplier if its cheaper? if the answer is less than once every year then don't come on here complaining when you can't be bothered to do even that.
If anyone has to choose between food or heating then they have serious financial problems which need to be sorted as energy prices are only £150 a month at most. Simple things such as turning off lights and things when not in use will reduce your electricity bills.
What has this got to do with the government? Do you write a letter to Westminster when the price of beans go up in the shop?.
spindleshanks - You complain about prices yet you obviously haven't even compared tariffs from other companies you dont even know what tariffs your own energy company offer.
EVERYONE ON HERE GO NOW TO USWITCH TAKE RESPONSIBILITY FOR YOUR OWN ENERGY PRICES DONT EXPECT THE GOVERNMENT TO DO IT FOR YOU!”
by Pentewan Sands
Monday, April 09 2012, 9:59PM
“- just wait for the extra charges on our bills when the wind & solar subsidies start kicking in. They're not just defacing our landscape, they're doing it through our wallets. It's our energy bills that pay for the wind turbine & solar farm sites. And those of us in remoter areas who rely on our cars are already pretty well stuffed by petrol costs. Can't wait to vote them out, from government to council level.”
by geofftq
Monday, April 09 2012, 8:47PM
“This is the world that we have allowed to be created from under our very feet buy people that treat us as the dirt under their finger nails... sucks eh? The Cons blame the Labs and vicky verky. Its all about power and control and we are just where they want us. Keep people in the dark about what is really going on, let them squabble amongst themselves and surreptitiously bring in more control measures.
you could write a book about this but know one would believe it!”
by Phil_lip
Monday, April 09 2012, 6:48PM
“Stork "The energy companies will never invest, unless they are forced to, if they're not, they won't." That is one of the reasons we need to re-nationalise the essentials to basic living, the competitivness that was going to be created when Thatcher started selling things off is non existent and anyone that thinks the capitalist market is the best thing since sliced bread is fooling themselves and anyone else they pollute with the propaganda they believe about a failed before it started system that needs to forecast a 3% growth model.”
by norfolkboy14
Monday, April 09 2012, 5:04PM
“You would think with all those wind turbines being built in Cornwall [destroying your beautiful environment which is the only thing which is free these days] that you would get some cheap electricity. No such luck!
Are you disillusioned by rising electricity prices, over dependence on the "green" dream [especially uneconomical and inefficient wind farms] and the destruction of our countryside then please add your support to get the Government to have a serious debate on this issue at
http://tinyurl.com/cajsyrf
or by GOOGLING "E-PETITION 22958" and following the link.
Please pass this message on to Councillors, members of your community and anyone else you know to persuade them to sign up too. If you are really concerned about wind turbines please write a letter promoting this petition to your local Newsletter and to the Editors of your local newspapers.”