Single-adult households ‘more exposed to price shocks’

Single-adult households are paying a higher share of their income on basic living expenses, Citizens Advice has warned.

According to the Institute for Public Policy Research (IPPR), many single-adult households - in particular those with children - are spending at least 20% of their earnings (after paying for housing) on bills.

By contrast, households in the top 10% for income spend just 5% of their post-housing income on expenses such as energy, water, broadband and car insurance.

Social tariffs and support schemes could help vulnerable households

Citizens Advice and the IPPR have urged the government and service providers to make sure struggling people don’t miss out on available help, such as social tariffs and bill support schemes.

“We want to see people eligible for bill support automatically enrolled to receive it,” said Dame Clare Moriarty, chief executive of Citizens Advice.

 “This change can’t come soon enough.”

Professor Ashwin Kumar, director of research and policy at IPPR, added that essential bills are leaving the lowest earners with “little room to breathe”.

“Well-designed social tariffs and bill support could save households hundreds of pounds a year and provide a vital lifeline to some of the most vulnerable people across the country,” he commented.

According to IPPR estimates, if social tariffs reduced essential bills by 25%, those in the lowest 10% for income could save about £13 a week, which works out to £680 a year.

What to do if you’re struggling

As everything from council tax to your TV licence goes up this month, it’s well worth seeing where you can save money.

We’ve put together a handy guide - 50 ways you can save money in ‘awful April’ and beyond - to help you drive down costs where you can.

You should also try our budget planner, so you can see where you could save money in your household and free up cash for vital expenses.

And don’t forget to use our benefits calculator, as you might be eligible for state support without realising it.