Soaring energy costs could force large families to spend more than a quarter of their disposable income on utility bills next year, an analysis has warned.
It comes as the average bill for electricity and gas is expected to reach £742 for large households in January, a huge jump from the £246 recorded at the start of this year.
Analysis by the Times shows that a person in a large household who takes home an average £2,615 per month after tax will end up losing 28 per cent of it to their energy providers – dropping to 20 per cent for those in average-sized homes.
The same study found that those with an average disposable income of £31,383 will spend about 12 per cent of their earnings on energy in 2023, if they have average usage.
Those using above average amounts of energy, in a four-bedroom detached property, for example, will see energy gobble up 17 per cent of their post-tax earnings over the year, rising to an astonishing 37 per cent for those on a low income, the analysis suggests.
It comes after projections this week found the average British household could face a monthly bill of at least £500 for energy in January 2023, with a prediction of an annual price cap of £3,240 in October and £3,850 in the first month of next year.
