Average energy bills have fallen by 7% (£9.75 a month) from 1 April under the Ofgem price cap, but the relief is expected to be short-lived.
Analysts forecast that average energy bills will rise to £1,929 from July to September, driven by a 33% increase in the cost of gas, caused by the impact of the Iran conflict on global energy markets.
The Prime Minister acknowledged today that the conflict will “affect the future of our country” and the Chancellor has said the Government is “preparing for all eventualities.” But speaking to the media, Rachel Reeves signalled that a package of support for energy bills is unlikely before the autumn, suggesting help would be timed to coincide with Ofgem setting the October price cap.
A spokesperson for the End Fuel Poverty Coalition commented:
“The fall in energy bills from 1 April offers brief relief for households, but the respite will be short-lived. Given the ongoing profits made by the energy industry, households deserve more than a temporary reprieve before prices rise again.
“For the millions of households already in energy debt to their suppliers, this is a real concern and risks pushing more people into crisis. Ministers have details for a Debt Relief Scheme on their desks and recommendations from experts on how to help these households, but have yet to sign off on the plans.
“The Government must use the window between now and July to act. That means targeted support for those hit first and hardest, including households off the gas grid and those on heat networks, faster action on energy debt, and preparations to bring costs down if prices deteriorate further.
“Increased Windfall Tax receipts from spiking North Sea profits should be used to fund that support. But beyond the immediate crisis, the only way to break this cycle for good is to insulate homes, expand homegrown renewables and reform electricity pricing so households see the real benefit of cheaper clean power.”