Energy Bills Now Eat 11% of Your Salary

Energy Bills are Eating Your Wallet (and You’re Not Even Hungry)

Back‑Story: How the Prices Sky‑Rocketed

In March 2023, RIFT Tax Refunds highlighted that rising energy costs are squeezing 11 % of the average paycheck into heating bills. That’s a £929 jump since August 2020, turning the yearly energy outlay from roughly £1,042 to a whopping £1,971.

Projected Wildcard: October & March Slumps

Oct 2023: Energy bill surges to £3,359
Mar 2023 Snapshot: Predicts a £3,616 load

The Real‑World Impact on Your Bottom Line

RIFT dug into average earnings. Back in August 2020, the median salary was £31,646, which meant energy costs represented 3.3 % of the income.

Fast forward to today: Average salary is £32,390, so that 3.3 % ballooned to 6.1 % of earnings.

What’s Next? 2022 to 2023 Outlook

Pre‑2022 salaries are stuck; by Oct 2022, bills could hit 10.4 % of wages.
Employer forecasts: A 3 % salary boost post‑2022 might look good, but with inflation above 10 %, the rise may not keep pace.
By Mar 2023, the average take‑home will be about £33,362, with energy costs absorbing 10.8 % of that.

CEO’s Take: “We’re All Shrinking Our Habits”

Bradley Post, RIFT’s CEO, notes:

“Energy prices are skyrocketing while wages stay flat. People are forced to rethink every purchase.”

“We’re buying less, traveling less, even eating less — the list goes on.”

“The government’s support sounds great, but it might just be a drop in the ocean for most households.”

“And that’s only energy. Food, fuel, your coffee habit — that’s a whole new level of budget crunch.”

Takeaway: Don’t Count on the Future — Count on the Present

Energy bills alone aren’t the full picture. Their growing cost will cut deep into your monthly food, fuel and even entertainment budgets. So if you’re planning your next vacation or looking to upgrade that shiny gadget, remember: your energy bill already shows 6–10 % of your paycheck. That’s a lot to account for.