Category: Reaction

Cheaper biscuits, free bus rides, but nothing on energy bills

The Chancellor has set out a package of cost-of-living measures, including free bus travel for children in England during August and cuts to import tariffs on more than 100 food products, expected to save consumers around £150 million a year.

But the announcement contained nothing on energy bills, as Rachel Reeves sought to reassure households by comparing July’s expected bills to April last year, obscuring the fact that forecasts point to a £209 rise on current bills and that gas unit rates are set to climb 25% on current prices.

A spokesperson for the End Fuel Poverty Coalition, commented:

“The Chancellor’s complacency on energy bills is shocking.

“Ministers say they are waiting until they finalise winter support. But that ignores the majority of households who pay on direct debit and could see energy firms increase their payments to take into account of likely higher costs this winter.

“Keeping people waiting for help will also be too late for households already in debt and dreading the next bill or people who rely on energy for medical or disability needs.

“The Government must confirm what energy support will be available now, including for those in energy debt, and those not covered by the price cap, such as households relying on heating oil and those on heat networks.

“The Chancellor also appears not to have set out a long-term plan to cut bills, such as breaking the link between electricity prices and volatile gas markets, or accelerating the shift to homegrown renewables.”

Worsening climate extremes will place new demands on households

The Climate Change Committee has warned that worsening heatwaves, flooding and drought are threatening public health, the NHS and basic living standards across the UK.

Its new report finds that without action, climate impacts could cost the UK up to £260 billion a year by 2050, while the adaptation measures it recommends would cost around £11 billion a year.

The report warns that maximum temperatures could regularly surpass 40 degrees Celsius in many areas of the UK by 2050, with the hottest heatwaves potentially exceeding 45 degrees.

Met Office data showed that 2025 was the hottest summer on record and the new report found that 92% of existing homes could overheat in more extreme heat events, creating dangerous conditions for the most vulnerable people.

The analysis also finds that the poorest neighbourhoods in the UK are seven times more likely to be vulnerable to overheating, and over ten times more likely to be at risk of flooding.

A spokesperson for the End Fuel Poverty Coalition commented:

“Fuel poverty is not just a winter problem. Households that are unable to afford to cool their home to an adequate temperature are just as much in fuel poverty as those who cannot afford to heat it. As summers grow hotter, that dimension of the crisis will become harder to ignore.

“The households least equipped to cope with extreme heat are the same households already struggling with high energy bills: people living in poorly insulated homes, people with long-term health conditions, disabled people, low-income families and older people.

“The Climate Change Committee is right that investment in adaptation is urgently needed. But the most cost-effective intervention remains the same one that addresses fuel poverty in winter and that is improving the energy efficiency of our homes.

“A properly resourced Warm Homes Plan, with a Warm Homes Guarantee [pdf] at its heart, would reduce the need for expensive cooling in summer just as it reduces heating costs in winter.”

Forecast shows a hard winter on the horizon after July price cap rise

Energy bills are now forecast to rise by £209 to £1,850 from July, a 13% increase on the current £1,641 cap, according to Cornwall Insight.

The analysts confirm that main driver is rising wholesale prices following US and Israeli missile strikes on Iran, damage to Gulf energy infrastructure, and the closure of the Strait of Hormuz.

The costs represent an 8% year-on-year increase, but October is now also being flagged by experts as an even greater concern, with current forecasts pointing to a similar cap level.

Despite recent moves by the Government to bring down the cost of energy, compared to winter 2020/21, the forecast represents an average energy bill that is £808 higher than before the Russian invasion of Ukraine.

Ofgem will make its final announcement of energy costs on 27 May.

A spokesperson for the End Fuel Poverty Coalition commented:

“Energy companies have made more than £3 billion in profits in the last three months on their UK operations and energy bills are now set to rise.

“Households are being asked to absorb an increase driven entirely by conflict and instability in the Middle East, while the industry that profits from the volatile gas market continues to cash in.

“We are also now able to see the clear danger that will come in October if the cap stays at a similar level. If bills remain high when heating season begins, millions of households already in energy debt or struggling to keep their homes warm will face an extremely difficult winter.

“Households need reassurance and support, not a summer of suspense. That means the Government must act before winter to spell out what support will be available.”

“The only lasting answer to the seemingly permanent energy bills crisis is to reduce our dependence on gas and the volatile markets that drive our energy bills. That means boosting energy efficiency and renewables and every year we delay that transition is another year households pay the price.”

Dr Craig Lowrey, Principal Consultant at Cornwall Insight, said:

“Short-term support can protect the most vulnerable households, but it won’t address the underlying problem.

“While Government’s plans, such as proposals to decouple electricity prices from gas, are well-intentioned, and in time they could make a small difference, gas is still likely to set the price the majority of the time, so consumers won’t feel a substantial change.

“Building out our renewable capacity is the only real path to bills that aren’t as exposed to events thousands of miles away. It won’t be cheap, and bills will not see an immediate drop, but that is the direction of travel if we want genuine, lasting stability.”

The UK’s wealthiest are getting wealthier according to new study

The Sunday Times Rich List, published online today with the full print edition following on Sunday, documents the fortunes of the UK’s 350 wealthiest individuals and families.

Their combined wealth has risen to £784 billion, a sum larger than the annual GDP of Belgium, Sweden and Israel combined, even as the number of UK billionaires has fallen from a peak of 177 in 2022 to 157 today.

Today’s release covers the top 20. The full list, published Sunday, will reveal where energy company owners and executives sit in the rankings.

A spokesperson for the End Fuel Poverty Coalition commented:

“The Sunday Times Rich List is an annual reminder of where wealth accumulates in the UK economy, and where the costs fall.

“As the combined wealth of Britain’s 350 richest has risen, the rest of the country faces a renewed cost of living crisis.

“In less than two weeks, Ofgem will announce how much average energy bills will increase starting 1 July. But when the full Rich List is published on Sunday, it will be worth looking for the energy names on it who are profiting from high energy costs.

“We already know that energy firms made £26.2 billion in profit in just the first three months of 2026 and oil and gas company bosses have seen their personal stakes in the industry rise as conflict in the Middle East pushes up the prices households pay.

“The Rich List documents who has gained from the system and now the Government needs to correct the balance. Taxing excess wealth and profiteering fairly could mean revenues to support struggling households, cut energy debts and invest in the insulation and renewable energy that will get the country off the fossil fuel price rollercoaster.”

Households can’t afford a Government distracted

While Westminster descends into political chaos, marked by the resignation of the English Health Secretary Wes Streeting, Ofgem will confirm an expected rise in energy bills in less than two weeks.

In a letter sent to the current Prime Minister earlier this week, charities outlined four policies that must be in place by the time regulators announce the new price cap.

The signatories called for enhanced financial support for households this winter, including an improved Warm Home Discount and action on energy debt; completion of the break between electricity prices and volatile gas markets; expanded support for solar, heat pumps, insulation and electric vehicles, particularly for lower-income households; and a commitment to staying the course on clean power.

The letter also set out plans for introducing a Warm Homes Guarantee to ensure lower bills, provide independent advice, establish clear consumer rights, offer fast redress if energy efficiency installations go wrong and include protections for renters.

Recent polling for the Energy and Climate Intelligence Unit found that the cost of living was the top driver of voting intention overall and energy bills were the single biggest cost-of-living concern among voters in the recent elections.

Simon Francis, Coordinator of the End Fuel Poverty Coalition, said:

“Whatever happens in Westminster, the energy bills crisis will not wait, and neither can the households depending on the Government to act.

“In less than two weeks, households will learn how much their energy bills will increase. Ministers must set aside the power struggle and stay focussed on the day job.

“Before the end of the month, the Government must be ready with a package of support for vulnerable households and those in energy debt now, while urgently reforming electricity prices to bring down costs for everyone. Every day of distraction jeopardises any progress that has been made in developing such support and means households may not get the help they need.

“Longer term, Ministers must make sure that more households, especially those on lower incomes, can make the switch to clean electricity and feel the savings in their bills. That means breaking the link between electricity and gas prices for good, and rapidly expanding support for solar panels, heat pumps, insulation and electric vehicles. These reforms also require political drive to make sure they happen as soon as possible.”

King’s Speech outlines three energy Bills due to be debated by MPs

Today’s King’s Speech [detail in this pdf] confirmed the introduction of an Energy Independence Bill, covering three broad areas: tackling energy affordability, accelerating energy security, and managing the transition away from oil and gas.

On affordability, the Bill puts the Renewables Obligation funding switch onto a permanent statutory footing, creates a new Warm Homes Agency to oversee the £15 billion Warm Homes Plan and changes Ofgem’s powers of regulation. It also includes an enabling power to provide targeted support for low-income and vulnerable households.

On energy security, the Bill reforms planning and regulatory frameworks to accelerate offshore wind, hydrogen and smart grid deployment, and introduces measures to speed up grid infrastructure build-out. A separate Bill will deal with nuclear energy regulation and an Electricity Generator Levy Bill will reform the taxes on profits from electricity producers.

On transition, the Energy Independence Bill introduces will confirm the ban on new exploration licences and fracking as well as ending new coal licences.

The government’ figures suggest that Reformed National Pricing, the Bill’s flagship market reform policy, could deliver savings of £20-40 on a typical annual dual fuel bill by 2040.

The Bill appears not to include any reforms to fuel poverty targets, nor does it set out a statutory social tariff framework or a ban on forced prepayment meter installations.

Jonathan Bean from Fuel Poverty Action commented:

“Energy security will only be delivered when all households can afford the energy they need to stay warm and safe.  Government must guarantee universal access to cheap renewable energy from solar and wind, complete with properly fitted heat pumps and insulation.  They must also ban the cruel disconnection of millions of people forced onto prepayment meters.

Joanna Elson CBE, Independent Age chief executive, said:

“The King’s Speech did not go far enough in addressing pensioner poverty… Energy support measures are welcome and we urge the UK Government to go further by enhancing the Warm Home Discount and introducing a more comprehensive energy social tariff to provide long-term protection against rising energy costs. This is extremely important in an increasingly volatile world.

“The income of the older people we support is often dangerously low and does not even cover the basic necessities of life. People tell us they are washing less, having just one small meal a day and not socialising as they cannot afford a cup of coffee. With 1.7 million older people living in poverty, the time for action is now.”

Yesterday, over 40 charities wrote to the Prime Minister to set out idea ideas that will support households during the renewed energy crisis.

A spokesperson for the End Fuel Poverty Coalition commented:
“With so much now dependent on the forthcoming Energy Independence Bill, we urge the Government to treat it as the centrepiece of its domestic agenda after the King’s Speech.

“The Bill must deliver a social tariff framework to protect the lowest-income households, an end to the scandal of forced prepayment meter installations, expanded support for home upgrades including heat pumps, insulation and solar, and provide stronger rights for renters and consumers.

“It must also complete the break between gas prices and electricity bills, move levies off bills and onto general taxation and put financing of network upgrades on the table for discussion.

“The prize is an energy system that is cheaper, cleaner, fairer and more secure. But we will only reach this prize if the Government matches its ambition to the moment.”

More detail on what is in and out is in this LinkedIn post.

Energy bills announcement on 27 May as PM faces leadership challenge

On 27 May, Ofgem will announce the new energy price cap, and households will learn what their energy bills will cost them this summer.

For the millions of households living in fuel poverty and for those already in energy debt, this will be a question of whether they can afford to keep the lights on.

Yet at the moment this announcement approaches, political turbulence at Westminster is dominating the news, with ministers and MPs focused on questions of leadership rather than the cost of energy crisis.

A spokesperson for the End Fuel Poverty Coalition commented:
“In just 15 days, Ofgem will announce the new energy price cap and households will learn how much their energy bills will increase.

“The Government should be working flat out on a package of support for vulnerable households and those in energy debt now, while urgently reforming electricity prices to bring down costs for everyone.

“Energy bills were the number one cost of living concern for voters at the last elections. All MPs and Ministers should be focussed on addressing the challenges constituents face rather than internal party politics and the Westminster bubble.”

Cost of living topped list of voters’ concerns going into elections

New polling from the Energy and Climate Intelligence Unit (ECIU), conducted by More in Common in the days before the elections, reveals that the cost of living crisis was the dominant concern for voters going to the polls, with energy bills the single biggest pressure driving that anxiety.

In England, the cost of living was the top issue determining voting intention, cited by 39% of voters, with energy bills (62%), food shopping (61%) and fuel costs (39%) the three biggest specific concerns.

In Scotland, tackling the cost of living came top at 50%, with energy bills (62%), food shopping (63%) and fuel costs (39%) again the leading pressures.

In Wales, the cost of living was cited by 49% of voters as the top issue, with energy bills and food bills (both 61%) and fuel costs (46%) the primary concerns.

A spokesperson for the End Fuel Poverty Coalition said:

“Voters’ number one cost of living concern going into the Scottish, Welsh and English elections was energy bills, and the results reflect a demand for bold action that has been too slow to materialise.

“Yet energy companies generated over £26.2 billion in profits in the first three months of 2026 alone, and some party leaders are pushing to hand them a further tax break. 74% of the public believe it is morally wrong for oil and gas companies to profit by billions from this crisis, and voters are right to be angry.

“The challenge now is for governments at every level to translate voters’ clear priorities into action. That means holding the line on the Windfall Tax, using those revenues to protect households from the July price rise, and ending the over-reliance on expensive oil and gas that has driven this crisis from the start.”

The polling also challenges any reading of the results as a mandate for rolling back the drive for clean energy, which is designed to help reduce the UK’s exposure to volatile oil and gas prices.

In England, only 12% of those intending to vote Reform cited reversing climate policies as a driver of their support. In Scotland, the figure was just 7% among potential Reform voters and 5% among those planning to vote Conservative. In Wales, only around one in ten Reform voters said reversing climate policies was an important issue.

Support for renewable energy remains strong across all three nations. In England, 70% of voters back onshore wind, 72% back offshore wind and 73% back solar farms.

Even among potential Reform voters, majorities support onshore wind (56%), offshore wind (66%) and solar farms (59%). In Scotland, support for offshore wind among potential Reform voters stood at 65%. In Wales, nearly six in ten voters overall said a party’s commitment to tackling climate change was an important issue in the Senedd election.

Shell posts £5 billion profits in first three months of 2026

Shell has reported £5.07 billion ($6.9 billion) in adjusted earnings for the first quarter of the year, more than double what it made in profits during the previous three months.

Q1 profits figures have already been reported by BP, Equinor and TotalEnergies, which have seen financial gains driven directly by the conflict pushing up energy prices.

Meanwhile, in a trading update, Harbour Energy has said that the Middle East conflict has created ‘unprecedented disruption’ to energy markets, but the firm has more than doubled its amount of surplus cash (known as ‘free cash flow’) for 2026 to £1.02 billion ($1.4 billion).

A spokesperson for the End Fuel Poverty Coalition commented:

“Shell’s outrageous results prove what every household knows: that the Middle East conflict is driving profits for energy firms while families across Britain dread the next bill landing on their doormat.

“But while the profits of North Sea oil and gas giants soar and the cost of living keeps rising, these same companies are actively lobbying against windfall taxes and calling for tax cuts.

“What will make a real difference to energy bills is breaking the link between electricity prices and gas markets, accelerating home insulation and clean heating while ensuring that the billions in profits made during this crisis are taxed and used to provide proper support for the households who need it most. That is the only route out of this continuous energy crisis.”

Parliament must bring an end to the forced pre-payment meter scandal

In 2022 and 2023, energy companies including British Gas, Scottish Power and OVO Energy were caught forcing pre-payment meters into the homes of vulnerable families. The then-Conservative government paused the practice amid public outcry.

Further media investigations revealed that magistrates are continuing to approve batches of warrants for forced entry into people’s homes, based on written evidence they have never seen, at private hearings the public knows nothing about. In one documented session, a debt agent dialled in by phone and named more than a hundred properties.

Following complaints, including from the End Fuel Poverty Coalition, the senior judiciary has reviewed the process and raised no concerns. The Department for Energy Security and Net Zero has told the Press Association that it regards the process as “standard procedure.”

A spokesperson for the End Fuel Poverty Coalition said:

“The forced PPM scandal sent shockwaves through the energy industry, and – more than three years on – the fallout has still not ended.

“Ofgem has yet to conclude its long-running investigation into British Gas’ behaviour, and court cases involving vulnerable energy customers are still being heard behind closed doors and decided in bulk.

“If the Chief Magistrate and Ministers do not see a problem with this, then it is time for Parliament to act.

“The forthcoming Energy Independence Bill, expected in the King’s Speech, must include provisions that significantly reform the court processes introduced in the 1950s or enable Ministers to remove the threat of forced prepayment meters for households unable to pay their energy bills.

“Households in energy debt are not there through choice, they are struggling because of five years of sky high energy costs and an oil and gas industry generating extraordinary profits that ultimately end up on people’s bills.”