Low Income Make Sacrifices to Cope With Higher Energy, Gasoline Costs

Low-income households make many sacrifices to cope with increased home energy and gasoline costs, including reduced purchases of food, medicine and changed plans for their education or their children’s education.

This is according to the first national survey of how rising home energy and gasoline costs are impacting households by income, released June 11 by the National Energy Assistance Directors’ Association (NEADA) and the Energy Programs Consortium. Five hundred familes from across the country participated in the survey, which was conducted in May. 

Specifically, the state officials reported that in order to cope with increased home energy and gasoline costs, 70 percent of low-income households reduced purchases of food, about 30 percent cut back on medicine, and almost 20 percent changed plans for their own or their children's education.

The survey also noted that low-to middle-income households are more likely to make compromises with their energy use, such as turning down the heat to a temperature they felt was unsafe or unhealthy. Furthermore, low- to moderate-income households are likely to have missed energy bill payments and  have their service terminated.

Higher income families also reported being impacted by rising energy costs: a quarter of families making between $55,000 and $77, 700 said it was more difficult to pay their energy bills this year and 65 percent  of high-income households reported driving less.

All income groups reported reducing discretionary spending, driving, and heating and cooling usage and said they have also made investments in more energy efficient heating, cooling, and appliances to bring down their costs.

Despite their sacrifices, many low- and moderate-income households were still unable to afford their energy needs. Middle and high-income households were much less likely to report that they faced these problems.

The complete NEADA survey and its press release are available at www.neada.org.

Page Last Updated: September 24, 2009