Price hikes adding to debt woe?

For people already deep in the red and struggling to keep their finances from spiralling out of control, any additional price hike could prove the last straw that drives them to seek debt management help.

Ofwat has announced that the cost of water is set to rise by 4.6 per cent in April – bringing its cost up to £356.

Independent price comparison website uSwitch.com claimed the move will have set off alarm bells for many UK consumers.

The portal noted the increase “could squeeze the last drops” out of household budgets.

Ann Robinson, director of consumer policy at uSwitch.com, said this latest development comes off the back of a number of difficult months for adults in the UK.

In this time, more pressure than ever has been placed on the budgets of many households, the industry figure explained.

She suggested: “After a full round of energy price rises, increased VAT and inflation that is outstripping pay rises, consumers may feel like they’re going under.”

Ms Robinson said this particular increase will feel especially harsh, because individuals do not have the option of switching to another supplier that has the prospect of offering them a cheaper service.

The only alternative is to go on a water meter, which itself could prove more costly in the long run, she added.

Recent research from Confused.com showed many adults in the UK are missing out on making considerable savings – and the nation as a whole is wasting £1.7 billion – by failing to switch their energy provider.

By Amy White