End Fuel Poverty Coalition, Author at End Fuel Poverty Coalition

Scrapping UK climate law will not reduce energy bills

Plans by the Conservative Party to replace the Climate Change Act have come under fire for locking Britain into costly gas imports at a time when North Sea reserves are rapidly running out.

Environmental groups also condemned the move, with the E3G think tank describing it as “a monstrous act of economic and environmental vandalism.”

A spokesperson for the End Fuel Poverty Coalition, commented:

“Kemi Badenoch says that the Conservatives want to put ‘economic growth and cheap energy first’, but there is no way to lower bills or energy security by prolonging our dependence on gas.

“By 2027, the UK will not be able to produce enough gas to heat our homes. And, even if new gas fields are approved, by 2050 the country will be left almost entirely reliant on gas imports as the level of reserves in the North Sea gas basin continues to deplete.

“Keeping households hooked on gas – which we will have to import at global prices from countries such as Trump’s America and Qatar – will only increase the profits of global firms and increase the misery of people unable to afford the sky-high prices.”

Labour Party conference ends with focus on energy bills

The Energy Secretary has announced initiatives to try and bring down energy bills, boost green jobs and ban fracking at the Labour Party Conference in Liverpool.

On the day that the average energy bill rose by 2.21% year-on-year rise (now 68% or £713 a year higher than in the winter of 2020-21), Government ministers have pointed to the work to deliver more renewables and “in the coming weeks” an announcement on the biggest home upgrade programme in British history.

A spokesperson for the End Fuel Poverty Coalition, commented:
“The Government is right to fight for homegrown, clean energy. The North Sea is running dry – even with new fields, the UK won’t produce enough gas to heat our homes by 2027. What’s more, fracking is unsafe, unpopular and unable to meaningfully reduce energy bills.

“So ramping up clean power is the only way to bring our bills down in the long term while providing a secure energy future.

“But as we approach a fifth winter of the energy bills crisis, households are struggling to cope with bills which remain hundreds of pounds a year above where they were in winter 2020/21 and energy debt is now at record levels. Meanwhile, new analysis from the Common Wealth think tank suggests that around 24% of every household energy bill is taken as profit by the energy industry.

“This is why we need action to provide more support to those who need it the most alongside improved energy efficiency and lower bills for households now.”

Household energy debt surges to £4.43billion

New Ofgem figures reveal that household energy debt has soared to £4.43 billion in Q2 2025 – more than triple pre-energy crisis levels and three-quarters of a billion pounds more than this time last year – leaving millions of families trapped in arrears they cannot escape.

The latest data [1] shows:

£1.45bn in debt and arrears at the end of 2020 (pre-crisis)
£3.69bn last year (Q2 2024)
£4.43bn in Q2 2025 (latest figures)

The regulator also reports that 1,133,683 electricity customers and 926,545 gas customers are now in debt without any repayment arrangement in place. Many households may owe on both accounts, meaning over a million households are struggling in energy debt.

The burden of this energy debt is shared by all bill-payers, with households facing up to an extra £145 a year on their bills to cover the collective cost of debt.

At the same time, new analysis from the Common Wealth think tank shows that around 24% of every household energy bill is taken as profit by the energy industry.

The regulator and Ministers are due to launch a new Debt Relief Scheme in the coming months, but while this is supported by members of the End Fuel Poverty Coalition, campaigners have warned it must be simple to understand and accessible. [2]

Debt experts have advised that it must include automatic eligibility for people on means-tested benefits, clear rules on what debt is covered, and flexibility in how households can apply. Experts have also stressed that suppliers should work with debt advice charities to ensure fair and consistent outcomes when implementing the scheme.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Energy debt is now driving people into dangerous financial positions as we approach the fifth winter of the energy bills crisis. Previous research has found that almost one in five households in energy debt have turned to illegal money lenders, with households waking each morning fearful of what using electricity or gas might cost them.

“We must urgently write off arrears and reform the system so fewer households are powerless to pay off their debts.”

Independent Age Policy Manager, David Southgate, said:

“Older people on low incomes are increasingly bed bound by the cold – forced to turn in early in hats, gloves, scarves, and extra blankets during the winter to stay warm. Many have fallen into debt in a bid to keep the heating on, with yet another difficult winter just around the corner, they need immediate support.

“We are calling on the UK Government to tackle this mountain of debt with a properly funded and targeted debt relief scheme, alongside wider affordability reform, including a national energy social tariff, to ensure everyone can afford to heat and power their homes.”

Frazer Scott, Chief Executive of Energy Action Scotland, said:

“The latest Ofgem figures show that there has been inadequate debt relief – and there is nothing in the pipeline to make energy genuinely affordable for the households that quite clearly cannot pay.

“The number of accounts in debt continues to rise, with average debts growing as well. Over £580 million in debt has been added in just the first six months of 2025. Without urgent intervention, this crisis will only deepen.”

Robert Palmer, deputy director of Uplift, commented:

“This is a saddening debt crisis for too many people in the UK and is driven in part by obscene profits. It’s just plain wrong that nearly a quarter of every household bill is taken as profit by the energy industry. What’s more, the UK’s heavy reliance on expensive gas added an average of £3,000 per household during the energy bills crisis.

“Yet again while shareholders are celebrating rising prices and huge profits, people are facing stark choices of how to ration their energy. Only by supporting struggling households now, improving energy efficiency and getting us off expensive gas through homegrown renewable energy will ministers be able to get a grip on the situation.”

Jonathan Bean from Fuel Poverty Action, added:

“Energy debt will continue to grow whilst the Government fails to deliver its promised £300 bill reduction, with energy prices 70% higher than five years ago.”

Toby Murray, Policy and Campaigns Manager of Debt Justice, said:

“These figures are a shocking indictment of the government and Ofgem’s failure to act on the energy debt crisis. Record energy debts are leaving millions trapped in arrears for a basic essential, bringing stress and hardship to households already struggling to get by.

“Yet almost a year after Ofgem announced they were looking into a debt relief scheme, not a single household has seen their debts reduced. The government must act now and write off unpayable energy debt.”

ENDS

[1] Data taken from Ofgem’s interactive charts on https://www.ofgem.gov.uk/data/debt-and-arrears-indicators which have recently been updated. Specifically, the headline figures use the chart from total financial value of domestic customer debt and arrears (existing for more than 91 days). Key figures:

Q4 2020 (pre-crisis): £1.45bn

Q1 2022 (pre-Ukraine invasion): £1.81bn

Q2 2024 (pre-General Election): £3.69bn

Q3 2024: £3.82bn

Q4 2024: £3.85bn

Q1 2025: £4.15bn

Q2 2025 (latest): £4.43bn

[2] The End Fuel Poverty Coalition is calling for urgent reform to tackle the energy debt crisis, including:

A Debt Relief Scheme with automatic eligibility for households on means-tested benefits and no arbitrary debt thresholds or forced customer contributions.
An end to punitive late fees, additional charges and rigid repayment plans that push people deeper into hardship.
Guaranteed protection for customers on prepayment meters, with relief available to those forced onto PPMs due to debt.
Longer-term action to cut bills and prevent debt recurring, including a national social tariff, fairer standing charges and pricing structures and a major programme of home energy efficiency upgrades and homegrown renewables.

Tariffs with lower standing charges set to come to market

Energy suppliers will have to offer at least one “low standing charge” tariff from early next year.

A four-week long Ofgem consultation will open the door to the new arrangements, which the regulator says will give consumers more choice on how they pay standing charges. If approved, the plans will allow households to pay the costs of running the grid as part of their unit rate by lowering the daily fixed (standing charge) amount.

A spokesperson for the End Fuel Poverty Coalition, commented:
“Requiring suppliers to offer a lower standing charge tariff is a small step forward, but it is not a cure for people struggling with high energy bills and fuel poverty.

“Prepayment meter customers in particular face the greatest detriment from high standing charges, which build up as debt even while people are not using any energy at all. To make a difference, these tariffs must be available to everyone and they must be easy to compare with existing deals.

“The energy industry must make sure that households properly understand the deals they are signing up for – and if a lower standing charge option will benefit them or not.

“And this development doesn’t negate the need for long term reform to make the system fairer, provide support for households struggling with high energy costs, improve the energy efficiency of people’s homes and increase our energy security through more homegrown renewable power.”

A spokesperson for Independent Age, said:
“Older people on low incomes have consistently expressed their frustration with standing charges that can be unfair and excessive. Which is why we welcome Ofgem’s proposal for energy providers to deliver low standing charge tariff options from next year. For this policy to be a success, the regulator must ensure that suppliers make these tariffs easily accessible and provide the full picture regarding the benefits and drawbacks of switching to one.

“While welcome, this reform does not address the affordability crisis. The weather is starting to get colder and last winter was especially brutal for older people in financial hardships. We regularly heard from people in later life that were sitting in cold damp homes or visiting public places to stay warm. The UK Government cannot allow this to happen again.

“They were right to expand the eligibility criteria for the Winter Fuel Payment, but now it’s time to start lifting people out of fuel poverty. To do this, the UK Government should introduce a discounted energy social tariff that will finally make standing charges and unit rates more affordable for those in greatest need.”

National Energy Action said:
“Given the public anxiety about standing charges, any progress in this area is positive, but it’s taken a long time to make even this modest step forward and regardless, Standing Charges or unit charges recovered through the overall energy bills, will remain high and even increase.

“Ofgem’s proposals also won’t change the differences consumers pay depending on where they live in GB or how pre-payment households will still be disproportionately impacted by how these fixed or higher unit charges are recovered if they fall into further difficulties paying their energy bills.

“Much of this complexity is being left at the feet of consumers to work through and there is a big worry this could just cause even further disengagement or distrust in what is considered already a baffling market. Given that the main programmes which support energy advice have yet to be extended beyond March next year, the enhanced need for impartial and in-depth advice and support could create huge challenges.”

Jonathan Bean from Fuel Poverty Action, commented:
“Yet again, Ofgem is pretending to help struggling households but is actually protecting energy firms. Instead of tackling the excessive energy industry profits, costs and levies buried in standing charges, it is now trying to hide them in unit costs. People will be left confused instead of protected.”

“This latest Ofgem plan is designed to distract us from high energy prices which are up 70% over five years, despite Government promises to reduce them. People don’t want more confusing options, they just want affordable energy.”

“The government cannot keep hiding behind Ofgem. It must now step in to bring down energy bills before more people get sick and die in cold homes this winter.”

Trump’s fossil fuel fantasy won’t cut UK energy bills

Donald Trump has reignited his war on popular wind power during his UK state visit and urging Prime Minister Sir Keir Starmer to exploit North Sea gas.

At a joint press conference, the US President repeated his “drill, baby, drill” mantra, while Sir Keir struck a more cautious note, stressing a “pragmatic” mix of fossil fuels, renewables and nuclear in the UK’s energy future.

A spokesperson for the End Fuel Poverty Coalition, commented:

“The President remains steadfast in towing the line of his fossil fuel backers who are gaslighting the British public about our energy future.

“The truth is, the North Sea is running out of gas – we have burned most of it. By 2027 it won’t even produce enough to heat our homes and only 14% of its original reserves remain commercially viable.

“No amount of bluster about drilling or fracking will bring back cheap gas, all it does is lock households into more reliance on volatile global gas markets.

“The UK is leading the way and showing the world that scaling up renewables and upgrading homes is the fastest, cheapest route to lower bills and lasting energy security.

“Of course we need to go further to bring down bills by reforming electricity pricing, but this won’t be achieved by importing Donald Trump’s fossil fuel agenda.”

Two million households won’t turn on their heating this winter

More than two million households say they won’t turn on their heating this winter, an increase on last year, reveals new Uswitch research.

Speaking to the BBC’s Good Morning Scotland, a spokesperson for the End Fuel Poverty Coalition, said:

“Not turning on your heating is an example of what we call dangerous behaviours. Being unable to heat your home properly is unsafe – it risks your health and leads to damp and mould, which make conditions even worse. Around 200,000 households in Scotland face this extreme form of fuel poverty, but the problem is far wider, with almost half a million Scottish households spending over 20% of their income on energy.”

Across the UK as a whole, over 12 million households spend more than 10% of their income on energy (43%) and around 5 million spend more than 20% on energy bills.

The spokesperson urged households to be alert to scams and to contact their energy supplier to check if they need to apply for the Warm Home Discount (see this Money Saving Expert advice) and other vital support with the cost of energy.

“While support such as the Warm Home Discount and winter heating or winter fuel payments can provide short-term relief, we cannot keep papering over the cracks each year. We need urgent investment in insulation and home upgrades, alongside reform of how energy is priced, so people can live in warm, safe homes without relying on volatile gas imports.”

Renters forced to ration gas and electricity

New research from Citizens Advice finds more than two in five private renters (41%, equivalent to 4.5 million people) in England and Wales had to ration gas and electricity to afford their energy bills last winter.

Meanwhile a third (32%, equivalent to 3.5 million) struggled to heat their home to a comfortable temperature. The charity says this forced people to take drastic measures like skip hot meals, wear gloves inside, and limit heating to just one room.

A spokesperson for the End Fuel Poverty Coalition commented:

“Millions of renters are being forced to ration energy, live in cold, damp homes, or even skip hot meals simply because landlords are not required to upgrade properties to a decent standard. At the same time, household energy debt has tripled in the last decade, with people falling behind on bills they can no longer afford.

“The government cannot continue to delay action.

“It must urgently deliver on its promises to raise minimum standards in the rented sector and provide greater protections for private renters through the Renters Reform Bill.

“Alongside that, we need targeted financial help for households with their energy costs, a national programme of area-based insulation upgrades and reforms to electricity pricing to bring down bills.

“Without these reforms tenants will remain trapped in cold, damp homes with devastating consequences for health, wellbeing and household finances.”

Rumours VAT could be scrapped on energy bills

The Times is reporting that the Chancellor is considering axing the 5% VAT on energy bills.

A spokesperson for the End Fuel Poverty Coalition, commented:

“We’ve long argued that energy for households should be a zero-VAT-rated essential good.

“This would be a hugely positive move by the Chancellor that could bring real relief to households facing a fifth winter of high energy bills. But it must also come alongside stronger, structural measures to reform electricity pricing, provide support for vulnerable households, ensure energy efficiency upgrades and investment in energy security.”

Home upgrade scheme take up rates show mixed picture

The Press Association Radar team have produced a series of articles examining the latest figures for the Home Upgrade Grant (HUG) and Local Authority Delivery scheme (LAD). These are government schemes supporting energy efficiency upgrades of low-energy efficiency (EPC of D or lower) low-income (household income below £30k) households across England.

The figures show a mixed picture in terms of take up and delivery around the country for the programmes which are now closed to new applications. Overall data does show a clear increase in measures being delivered since the last General Election.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Every upgrade of a home in fuel poverty is a step in the right direction.

“But we need progress to be delivered at speed and with the urgency the energy bills crisis deserves. Every winter spent in a cold damp home causes misery and health complications for millions of households.

“This is why the Government’s Warm Homes Plan must be rooted in a ‘Warmth First’ principle, treating a warm, dry and affordable-to-heat home as a basic human right.

“And upgrades to homes must come alongside reform to electricity pricing and moves to secure our energy supply in the future, especially given that the North Sea will not be able to meet our gas heating needs from 2027.”

Report suggests radical change in electricity market

A new report from Greenpeace has exposed just how much control fossil gas still has over our electricity bills. Despite making up less than 40% of our power supply, gas-fired power stations set the market price nearly every half hour — inflating costs for households and businesses alike.

This happens because of the way our electricity market is designed: a system called marginal pricing, where the most expensive generator sets the price for everyone.

A spokesperson for the End Fuel Poverty Coalition, commented:

“This new analysis makes crystal clear what millions of households already feel: the energy market is still rigged in favour of fossil fuel giants.

“Even as renewable generation grows, gas still sets the price of electricity 98% of the time, handing huge profits to energy companies while driving bills higher for households. It’s a structural failure of the market, not a temporary blip.

“The Government’s current strategy is to sit back and hope that marginal pricing will fade as renewables expand. But hope is not a reform plan. Even in a clean system, expensive gas could still set the price during periods of peak demand and households will continue to pay the price.

“Given the failure of the Government’s electricity pricing reform process to deliver meaningful reform so far, new ideas like the one proposed by Greenpeace and Stonehaven to remove gas plants from the wholesale electricity market and place them into a strategic reserve, need to be looked at.

“The electricity market needs structural change, not minor tweaks or warm words.”