Author: Simon Francis

Life in cold, damp homes doesn’t pause for the Scottish campaign trail

The Scottish Budget includes welcome funding for energy efficiency, housing and the transition to clean energy. It also includes significant support with the cost of living, including extension of help for families with young children and tax reforms designed to reduce the income tax paid by over half of the country.

But with an estimated 800,000 Scottish households living in fuel poverty and energy debt continuing to rise, a spokesperson for the End Fuel Poverty Coalition commented:

“Any investment that helps make homes warmer and provides support to struggling households will matter to many people. But after five winters of high energy bills, this Budget still does not match the scale of the fuel poverty challenge facing Scotland.

“With an election approaching, it’s understandable that politicians may be tempted to keep their powder dry. But cold, damp homes and rising energy debt won’t pause for the campaign trail. There is no excuse for inaction when hundreds of thousands of households are struggling to stay warm.

“Against that backdrop, inflation-linked increases to energy efficiency budgets means the country will risk standing still rather than moving forward. We need a step change, not business as usual.

“The current Government should use the months before the election to build a far more ambitious programme where warm homes are treated as national infrastructure and where crisis funding is in place for winter 2026/7.

“Meanwhile, Ministers must press harder for UK-wide energy pricing reform, so households are not left dependent on emergency support year after year.”

No new levies on gas bills promises Minister

Efforts to cut energy bills and warm homes will not come with a new gas bills levy as had been reported over the festive period.

Speaking in the House of Commons, the Energy Secretary labelled news reports of a new charge “absolute nonsense”. Ministers also repeatedly vowed to publish the Government’s Warm Homes Plan and fuel poverty strategy “soon”.

A spokesperson for the End Fuel Poverty Coalition, commented:

“It’s a relief to hear that recent media reports of a new levy on gas bills were not based in any reality.

“With around a fifth of fuel poor homes suffering from high levels of carbon monoxide due in part to ageing gas boilers and the North Sea basin in geological decline and unable to provide enough gas to heat our homes from 2027, it’s clear we need to move away from gas as our main heating source in the long term.

“While bringing down electricity prices is key to this, there are plenty of other options the Secretary of State should consider before putting up gas bills. For example, we could see GB Energy invest in infrastructure so some of these costs could be taken off bills. The Government could reform how electricity pricing is set and reduce the impact of the role of energy market trading on prices. And the Treasury could step in and use the receipts from the Windfall Tax to wipe out the record levels of energy debt built up by households due to the profiteering by the energy industry during the crisis.

“These sort of changes would deliver lower energy bills and a fairer energy system for everyone.”

Cold crisis as one in three struggle to heat their homes

Figures show that 29% of adults are unable to keep their home at the recommended minimum temperature of 18°C, the level advised by World Health Organisation experts to reduce the risk of illness.

Reports in the Express reveal that among those affected are around 3.2m (23%) older people (aged 65+) who say they struggle to keep their home warm enough.

As energy bills remain 69% higher than in winter 2020, the End Fuel Poverty Coalition polling from Opinium shows that the problem is particularly acute among households on incomes below £40,000 and people living with long-term health conditions, including lung conditions and physical disabilities.

A spokesperson for the End Fuel Poverty Coalition, commented:

“It’s shocking that after years of warnings, so many people are still stuck in homes that put their health at risk. No one should be facing winter worried about whether their home is warm enough.

“We urgently need to see further action to bring down the cost of energy in the new year, especially on electricity which is homegrown and should be much cheaper than it currently is.

“One sign of hope is that we know that households are taking action to look at how they can make their homes more energy efficient, but they need help to do this. Every week of delay to the Government’s much promised Warm Homes Plan means households are stuck in cold, damp homes for longer.”

Charlotte Higgins is retired and lives in Solihull in the West Midlands and had energy-saving measures fitted by the Solihull Household Support Fund. She said: “The loft insulation has been done, and I’ve had solar panels on the front and the back. It’s made a difference to my heating, and my bills are a lot cheaper.”

Jan Shortt, General Secretary of the National Pensioners Convention said: “With energy bills hundreds of pounds a year higher than they were in 2020, there is a real danger of older people falling ill through living in cold, damp homes.

“Whilst some older people receive the winter fuel payment, others do not. Some receive the warm homes discount on their bill, others do not. Even with this small income, it is hard to keep a house warm in really cold, wintry weather.

“The cost of energy has another cost – that of overflowing A&E departments, wards and GP surgeries. Not being able to heat your home does not just mean you are susceptible to colds and flu but also to respiratory conditions, heart disease, arthritis and other health conditions that demand individuals keep warm.

“We need to ensure that everything is being done to insulate homes, find alternative and sustainable sources of energy.”

Cold homes figures revealed as Warm Homes Plan is delayed further

Five years into the energy bills crisis, millions of people are still living in cold, damp homes that are making them ill and putting avoidable pressure on the NHS. New polling shows that while headline numbers have barely shifted, people with health conditions and renters remain far more likely to be stuck in unsafe housing, with damp and mould a daily reality for many.

Against this backdrop, the media is reporting that the long-awaited Warm Homes Plan will now be delayed until the New Year. A spokesperson for the End Fuel Poverty Coalition, commented:

“Every week of delay to the Warm Homes Plan means households are stuck in cold, damp homes for longer.

“And every week of delay also means more pressure on the NHS as it has to deal with the health consequences of people living with mould and cold, and delays mean more uncertainty for supply chains who deliver energy efficiency measures.

“After five years of the energy bills crisis and 18 months of a Government elected to deliver a comprehensive Warm Homes Plan, people cannot wait indefinitely for a clear strategy to make homes warmer, safer and cheaper to heat.

“The government must urgently set out when the Warm Homes Plan will be published and, crucially, how it will prioritise support for those in the coldest and most unhealthy homes.

“Warm homes are not a nice-to-have. They are a basic right and a public health necessity.”

Grid reform is welcome, but must not become a blank cheque

Ofgem and the National Energy System Operator have announced the biggest shake-up of Britain’s grid connections process to date, prioritising “shovel-ready” renewable projects and clearing out speculative or stalled applications.

But with network firms and energy generators having made billions during the energy crisis, much of it flowing to offshore ‘vampire funds’, campaigners are demanding a just transition that puts people before profits, a focus on community energy projects and delivering fairer bills for households.

A spokesperson for the End Fuel Poverty Coalition, commented:
“Reforming the grid connection system a necessary move that will help unlock cheaper, cleaner, homegrown energy and bring us closer to an energy system that ends fuel poverty.

“But faster grid access must be matched by real accountability for how network firms and energy generators spend and profit. These companies have made billions during the energy crisis — with profits flowing to offshore investors and so-called ‘vampire funds’.

“This reform must not become an excuse for blank cheque infrastructure spending that inflates standing charges while delivering poor value for households.

“And it must be a fair process, so it’s not just a case of those projects with a healthy lobbying budget get preferential treatment. Community energy projects, which deliver cheaper power for customers and have local control and accountability built in, must not be excluded or pushed to the bottom of the queue.

“To truly fix Britain’s broken energy system, we need grid reform, fair pricing, investment in energy efficiency and a social tariff to ensure the transition benefits everyone — not just big investors.”

Grid investment is vital, but not at any cost

Ofgem has announced that £28bn will be spent over the next five years on Britain’s gas and electricity networks, but this could rise to £90bn.

Overall, Ofgem estimates that the net increase in bills to cover costs by 2031 will be around £3 per month. But this could be more in the short-term, falling in the longer term. Of the initial money announced, the majority of the funding (£17.8bn) will go towards maintaining Britain’s ageing gas networks.

The End Fuel Poverty Coalition profits tracker estimated that over £50bn of profits have been generated by electricity and gas transmission and distribution firms since 2020.

A spokesperson for the End Fuel Poverty Coalition, commented:

“With the North Sea running out of gas and after years of under investment, upgrades to Britain’s energy grids are vital to ensure a reliable energy supply and to help homes benefit from renewables as they come online.

“But that shouldn’t mean signing a blank cheque for network and transmission companies. These vast sums of essentially public money must come with proper scrutiny and guarantees for consumers.

“These firms have already made billions in profits during the energy crisis, with significant returns flowing to offshore investors and so-called ‘vampire funds’.

“Households can’t keep footing the bill while private equity profits. Every penny added to customers’ bills must be spent delivering clear value for money and actively helping to reduce the cost of energy in the long-term and ensure energy security.”

Energy Profits Levy retained as households still face high bills

The Chancellor’s decision to keep the Energy Profits Levy has been met with fierce opposition from parts of the energy industry, despite falling revenues from the tax.

A spokesperson for the End Fuel Poverty Coalition commented:

“The Chancellor was right to maintain the Energy Profits Levy and then reform it after the current period ends. Given tax rises elsewhere in the budget, it would have been perverse to have then handed a tax break to companies that are making extraordinary profits during the crisis.

“Given that the North Sea will naturally run out of gas, more drilling won’t make energy cheaper or the country more energy secure. But as the gas industry declines, it is vital that workers and communities affected by the changing energy mix are properly supported.

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

“And in Scotland, we will see a real terms reduction in the funding available for vital energy efficiency measures with the scrapping of the ECO levy, which we would urge the Chancellor to address with the receipts from the Windfall Tax.

“The millions of households who will still be struggling with the cost of energy need further bold action from Governments in Westminster and Holyrood in reform of energy pricing, targeting energy bill support at those who need it, and in creating an ambitious Warm Homes Plan to upgrade cold, damp homes.”

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.”