Abacus Daily Debt News

Soaring oil prices to create debt problems?

Britons may be at increasing risk of debt and other financial difficulties because of hikes in oil prices, it has been claimed.

According to a report entitled The Oil Crunch - a wake up call for the UK economy, published by Sir Richard Branson and other businessmen, shortages and price increases have been predicted for as early as 2015.

It noted that the poorest families are those most vulnerable to such climbs and added that the government must create contingency plans for infrastructure.

"Fuel price unrest could lead to shortages in consumer products and the UK’s energy security will be significantly compromised," the paper continued, with Sir Richard saying that "viable, affordable and secure long-term sources of alternative energy" must be developed.

This follows a recent report from uSwitch.com suggesting that, taking pricing trends and required investments into account, annual energy bills could reach £4,733 by 2020, a fact described as a "big wake-up call" by director of consumer policy Ann Robinson.

By Sarah Adie