Simon Francis, Author at End Fuel Poverty Coalition

Energy bills to fall next spring, but cold homes remain a national challenge

Today’s Budget brings a modest but welcome reduction in energy bills. After five turbulent years, any drop in costs offers relief to households who have been stretched to breaking point. Our analysis suggests the average bill will fall to around £1,665 from April 2026 — a step in the right direction and recognition that further action on affordability is needed.

But the job is far from done. Bills will still be significantly higher than before the crisis and the UK now faces a 25% shortfall in energy efficiency funding with the end of the ECO scheme. Without restoring long-term investment in warm homes and reforming the way energy is priced, millions will continue to face unnecessary hardship.

A spokesperson for the End Fuel Poverty Coalition commented:
“Any reduction in energy bills will be welcome as households face their fifth winter of the energy costs crisis and the Government is right to be investing in the Warm Homes Plan to help improve the energy efficiency of peoples’ homes.

“But no one can warm their home with Budget headlines, and the Chancellor’s statement also highlights the scale of the challenge.

“Even with the changes announced, we expect that from April 2026, average energy bills will still be hundreds of pounds higher than they were in winter 2020/2021 and £97 higher than at the General Election.*

“The millions of households who will still be struggling with the cost of energy need further bold action from the Government in reform of energy pricing, targeting energy bill support at those who need it, delivering on a new fuel poverty strategy and in creating an ambitious Warm Homes Plan to upgrade cold, damp homes.

“And we’d also urge the Chancellor to address a c.25% projected shortfall in total energy efficiency funding in future budgets after the ECO scheme is scrapped.”

* End Fuel Poverty Coalition estimates based on the current price cap, the Ofgem 1 January price cap announcement, industry analysts forecasts and the Chancellor’s statement / Budget documents. Price cap comparison points:

01/01/2021 — £1,042
01/07/2024 — £1,568
01/10/2025 — £1,755
01/01/2026 — £1,758
01/04/2026 — £1,665

Another Winter, same crisis: Energy bills stay high as profits soar

As the UK braces for another winter of cold weather warnings, the Ofgem price cap for January to March 2026 has been announced.

Average energy bills will come in at £1,758. This is £3 higher than current levels, with bills remaining over £700 above 2020 levels and £190 higher than at the General Election in July 2024.

Meanwhile the energy industry has posted more than £40bn in UK profits in the last two years. With the Budget days away, the Government faces a defining choice.

A spokesperson for the End Fuel Poverty Coalition, commented:
“Energy bills remain stubbornly high as households face a fifth winter of the energy costs crisis. Today’s announcement sees standing charges rise yet again, highlighting the structural challenges in how energy is paid for.

“The addition of a new levy on bills which pays for nuclear power stations is unwelcome and could have been delayed until closer to when these plants actually start to generate electricity.

“Today’s Ofgem announcement keeps the average energy bill at almost £700 above the levels of winter 2020/21 and £190 more than at the 2024 General Election.

“Despite many people living in cold damp homes, the energy industry has posted more than £125 billion in profits in the UK alone in recent years.

“Yet some business lobbyists have called for the Chancellor to end the Windfall Tax. Instead, next week’s Budget is a chance for the Government to finally get serious about ending fuel poverty.

“We need long-term investment in energy efficiency, not short-term thinking. We need action to bring down electricity prices, not excuses. And we need a fair tax regime that puts people before profiteers.

“If the Government truly wants to cut bills and protect the public, it must fully fund the Warm Homes Plan, continue to improve our energy security, introduce a fair social tariff, and reform our broken energy pricing system.”

Energy bills could remain £691 a year higher than 2020

Media reports suggest average household energy bills might drop slightly from 1 January 2026. Experts at Cornwall Insight have said that the Ofgem price cap is expected to dip by 1%, taking an average bill to £1,733 a year.

This figure remains £691 higher than before the energy bills crisis started.

A spokesperson for the End Fuel Poverty Coalition, commented:
“As cold weather warnings are issued across the UK, energy bills remain at crisis levels while energy giants have generated over £125 billion in profits on their UK operations since the energy crisis started.

“Millions of households are already rationing their heating to stay afloat, and with temperatures dropping sharply the risks to people’s health and safety are becoming severe.

“After five winters of sky-high bills, families cannot be expected to cope with this alone. We urgently need reduced electricity bills and targeted financial support for those most at risk, alongside a fully funded national programme of insulation and energy-efficiency upgrades to keep homes warm.”

Ministers urged to clarify energy efficiency support funds

More people will get money off technology that keeps their homes warm in winter and cool in summer after the Government has announced plans to expand the Boiler Upgrade Scheme.

This currently offers grants of £7,500 off the cost of installing an air source or ground source heat pump, now the scheme has been expanded to offer a £2,500 discount off the cost of installing an air-to-air heat pump, which can provide heat in winter and air conditioning in summer.

The grants are available to all households and form part of the government’s £13.2 billion Warm Homes Plan, rather than being funded in addition to this budget as previously expected.

A spokesperson for the End Fuel Poverty Coalition, commented:
“The Government doesn’t seem to know if it is coming or going.

“One week they are briefing the media that energy efficiency budgets may be slashed in the Budget. The next they are talking up heat pumps and calling for households to apply for support.

“Households struggling with the fifth winter of high energy bills need to know what help will be available to them to keep their homes warm in winter and cool in summer.

“The Government’s Warm Homes Plan and fuel poverty strategies need to be published without any further delay so households know where they stand and industry can ensure enough skilled workers are trained.”