Soaring energy prices force half of young people to stop saving for their future

dailyrecord.co.uk:

New data analysed by Opinium has discovered that the recent energy price cap rise is affecting the finances of the younger generation more than any other.

Its research found that 18-34 year olds are the most likely to be cutting back on putting money into their savings (23%), investments (14%) and pensions (13%) in order to mitigate soaring energy prices.

When asked what an increase in energy bills of £700 per year would mean for them, a third (32%) said they wouldn’t be able to heat their home any more, 18 per cent said they wouldn’t be able to afford their rent, 14 per cent said they wouldn’t be able to make their mortgage payments and 16 per cent said they wouldn’t be able to afford their childcare - all higher than any other age group.Almost half (47%) of 18-34 year olds have said they are concerned about how they will cope financially if Ofgem raises the energy price cap again in October.Commenting on the findings, Alexa Nightingale, Head of Financial Services research at Opinium, said: “The record increase to the energy price cap that came in earlier this month comes at a time when consumers’ finances are being squeezed from all angles.

With the general cost of living rising, and interest rates and inflation soaring too, many people in the UK will be feeling out of pocket.“Our survey of 2,000 adults across the UK shows that it’s the younger generations who are going to be hit the hardest, but worryingly are the least likely to know about the rise in energy prices.”She added: “It is likely that for many the UK Government’s Energy Bills Rebate, due in the autumn, will not go far enough, and it’s no surprise that people are already taking steps to mitigate upcoming rising costs.