Ahead of an expected announcement of a new assistance program worth one billion pounds for those struggling to heat their homes, Saga has found that many are making cutbacks on the bare essentials because of the financial pressure involved in keeping themselves warm.

The specialist insurer has warned that the new assistance scheme will not go far enough to help people who are having to limit the amount of water they use and food they consume because they cannot afford their energy bills. A study carried out by the group showed that 21 per cent of people have set aside money usually put towards food, other utilities and paying off loans in order to pay their inflated energy bills.

It warned that the situation is likely to become worse for many consumers as the winter draws nearer, as further price hikes of up to nine per cent are predicted by the end of the year. Furthermore, it is not just low-income households who are struggling, the insurer said. The study identified a broad trend across many UK regions where homeowners were struggling to keep up with bills.

For those who have fallen behind with payments in recent months, applying for a debt consolidation loan may prove an effective way to limit monthly outgoings and ease the financial burden during the colder months.

Research from the group indicated that the over-50s are being worst hit by the recent price hikes, with 24 per cent of people in this age group saying they have cut back on essential items, compared to 20 per cent of those under 50 years old. Instead, younger people were looking to cut back on payments towards debts owed on credit cards and loans in an effort to keep warm. Reducing loan repayments and other similar contributions was identified as a principal course of action for 24 per cent of those aged under 50.

“These statistics are extremely concerning given the current economic climate and the mounting debt incurred by many younger generations at university,” Saga commented.

However, it added that savers are also finding it difficult to cope with energy bills, with 17 per cent of respondents to the study conceding that they are reducing the amount of money they put away in order to meet the inflated costs of gas and electricity.

Meanwhile, breaking down the statistics in terms of gender also showed that if they were to cut back on essentials such as food and water, women would rather use this to pay off their energy bills, while men would use it to try and wipe off some of the debt owed on items such as credit cards and loans.

For those who are struggling to keep up with household repayment commitments, taking out a debt consolidation loan may prove an effective way to alleviate the burden and make monthly income go further. Opting for this loan may be necessary for a growing number of people as more people find themselves struggling in the current financial storms. Announcing new measures to help people during difficult times last month, Yvette Cooper last month warned that a stronger safety net to keep residents and businesses afloat financially was needed.

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