Category: Reaction

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.”

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.”

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.”

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.”

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