Category: Reaction

Chancellor confirms energy bill support planning

The Chancellor has confirmed that contingency planning is under way for targeted energy bill support ahead of the expiry of the current Ofgem price cap at the end of June, as rising oil and gas prices driven by the Iran conflict threaten to push household bills higher from July.

Rachel Reeves told MPs that her approach to providing support would be responsive to the need and responsible in terms of protecting public finances.

The Chancellor said that support would be focused on those who need it most, indicating a preference for targeted help over a blanket approach. She pointed to the costs of the broad energy support package introduced during the Ukraine crisis as a reason to take a more focused approach.

A spokesperson for End Fuel Poverty Coalition, commented:
“Households need to know what the Chancellor’s ‘responsive and responsible’ mantra means in practice.

“The immediate priority must be a new Alternative Fuel Support Scheme for off-gas-grid households, price protection for heat network customers, action on record levels of energy debt and targeted reductions in unit rates from July for households including those with disabilities and long-term health concerns.

“The Chancellor must also commit to expanding and extending the Warm Homes Discount and reforming Cold Weather Payments before winter.

“The money is there. North Sea profits are rising alongside the same gas prices pushing up household bills. Being responsible with public finances means using subsequent tax revenues now to protect people, not waiting until the damage is done.“

The End Fuel Poverty Coalition recommended that the Government introduce a new, longer-term, Alternative Fuel Support Scheme for households relying on heating oil, LPG and other off-gas-grid fuels, as well as support for heat network customers who face rising commercial energy prices.

The proposal also recommends preparing a targeted reduction in energy unit rates from July if the Ofgem price cap rises significantly, alongside faster rollout of a national energy debt relief scheme to address record levels of household debt.

For the winter, the Coalition is calling for reforms to existing schemes including further expansion of the Warm Home Discount and strengthening Cold Weather Payments so support reaches vulnerable households earlier.

Ministers are also urged to speed up reform to electricity pricing and prepare a scalable universal support package that could be activated quickly if energy prices spike further.

Cobra must act on energy costs, not just talk

The Prime Minister has convened an emergency Cobra meeting to examine the cost-of-living impact of the Iran conflict, with oil and gas prices surging due to the threat of further escalation in the Middle East conflict.

For millions of households, the consequences are already landing. Heating oil prices have doubled in recent weeks for off-gas homes sitting outside the protection of the Ofgem price cap. And even before this latest spike, Cornwall Insight was already forecasting that average energy bills would rise to £1,973 from 1 July, a 20% increase on current levels and a figure that has almost certainly moved higher since.

The same price spike hitting households is generating a windfall for North Sea energy firms, and therefore for the Treasury through the Energy Profits Levy. New analysis published by the End Fuel Poverty Coalition shows that at prices seen in mid-March, those profits could generate over £200 million a month in additional Windfall Tax revenues, rising to more than £5 billion a year when combined with offshore corporation tax receipts.

A spokesperson for the End Fuel Poverty Coalition said:

“People reliant on heating oil and gas cylinders to power their homes are already suffering from the oil and gas price spikes. Millions more households will face a 20% increase in their energy bills from July. For families who are already in debt and already struggling with energy bills, there is no more time to waste.

“North Sea energy firms are on course to make bumper profits as a direct result of this crisis, potentially generating hundreds of millions of pounds a month in additional Windfall Tax revenues at current prices. That money should be used to protect households from the bill rises heading their way. Every lever available includes the levers that take money from those profiting from this crisis and put it into the pockets of those suffering because of it.

“The Government should come out of the Cobra meeting with a clear commitment to targeted support for the households most at risk. The framework for that support must be ready to activate the moment the July price cap is confirmed. The lesson of the last energy crisis is that acting too slowly costs far more in the long run, both for households and for the public finances. The time to prepare that emergency support package is now.”

Households face a £332 Trump Tax on energy bills from July

The latest projections show that average energy bills will increase to £1,973 from 1 July 2026, representing a 20% price increase compared to the level just before the rise (i.e. taking into account the reduction of bills from 1 April).

It represents a 90% (£900+) increase over pre-energy bills crisis levels (winter 2020/21 benchmark) and a 26% (£400+) increase over the last general election.

A spokesperson for the End Fuel Poverty Coalition, commented:
“This amounts to a £332 Trump Tax on household energy bills as the conflict continues. At the same time, energy industry profits are likely to rise again as households are left exposed to another global oil and gas price shock.

“Government should be ready with targeted support for households from 1 July while planning for more universal measures if the price surges continue. Meanwhile it must also use this moment to speed up home upgrades, electricity pricing reform and the shift to homegrown renewables.

“Households cannot be left to foot the bill for global instability while energy companies and markets benefit from the turmoil.”

Households face a fresh energy bill threat as gas prices hit three-year high

Gas prices have soared to a three-year high and oil prices increased further as the Middle East conflict escalates.

Attacks on energy sites in Iran and Qatar were followed by threats from US President Donald Trump to “massively blow up” a key Iranian gas field.

UK natural gas prices spiked by more than 124% month-on-month and 65% up year-on-year, the highest level since the conflict escalated at the end of February. [1]

While the FTSE100 is trading down 1.9% shares in energy firms have risen, taking share price gains by these firms since the conflict started to close to 10%. [2]

A spokesperson for the End Fuel Poverty Coalition, commented:

“These gas and oil prices haven’t been seen since the winter of 2022/23 when an Energy Price Guarantee was needed to protect households from the worst excesses of our exposure to global markets. The reality is that households will face a ‘Trump Tax’ on their energy bills as a result of this war and the case for Government action to support households is becoming impossible to ignore.

“We have written to Ministers with proposals to ensure support reaches the households most exposed to high energy costs first, while giving Government the ability to scale up help quickly if the crisis continues.

“That means immediate support for households relying on heating oil, LPG and other off-gas fuels, help for heat network customers facing rising commercial energy prices, and targeted reductions in energy bills from July when the price cap rises. It also means faster action on energy debt, stronger winter support through the Warm Home Discount and reformed Cold Weather Payments, and an overhaul of electricity pricing so households are not left paying more than they should.

“These are practical steps that can protect people now while complementing longer-term plans such as the Warm Homes Plan and moves to renewables, which are essential to bringing bills down for good.”

Jess Ralston, Head of Energy at the Energy and Climate Intelligence Unit (ECIU), said:

“This will be a major concern to bill payers, many of who are still carrying debt from the last gas crisis when Russia invaded Ukraine. That led to taxpayers having to step in essentially subsidising gas for millions of homes to the tune of tens of billions. And let’s be clear trying to squeeze more gas out of the North Sea has no real impact on the price households pay because its set by international markets and these kind of world events caused by foreign actors like Putin.

“Put simply, if you want to insulate yourself from these kind of price shocks, use less gas. British wind and solar farms lower our dependence on foreign gas, as do net zero technologies like electric heat pumps and this helps with bill stability. British wind power lowered wholesale prices by a third last year. These are permanent solutions, whereas the North Sea is a mature basin running out of oil and gas, quicker drilling means it runs out quicker.”

[1] Trading Economics, 0930 Thursday 19 March.

[2] Bloomberg data on End Fuel Poverty Coalition share price watch list of 15 listed firms involved in the UK energy sector.

Wet weather, rising bills and cold homes are putting lung health at risk

New warnings from Asthma + Lung UK show how wet weather and the threat of higher energy bills are combining to put people with lung conditions at greater risk.

The charity says damp and mould can trigger asthma attacks, chest infections and hospital admissions, while 17% of people with lung conditions say they struggle to keep their home adequately warm.

That warning comes as evidence continues to mount about the health impact of poor housing. Separate figures reported in the Independent suggest that in 2024 there were just under 40,000 NHS hospital admissions where cold homes, damp, mould or poor housing conditions were recorded as contributing factors to serious respiratory and cardiovascular illness.

But there is also clear evidence that home upgrades can improve health. A recent case study in York highlighted how energy efficiency improvements helped an older resident end years of breathing difficulties and financial stress, stay warmer and feel better at home.

A spokesperson for the End Fuel Poverty Coalition, said:

“For people with asthma, COPD and other lung conditions, a cold, damp home can be dangerous to their health.

“After one of the wettest winters on record, many households are already dealing with damp and mould. Now the oil and gas price crisis is raising the threat of higher bills, which could leave even more people cutting back on heating or unable to keep their homes dry and safe.

“Ministers need to act on two fronts at once. They must get the Warm Homes Plan moving for the coldest and dampest homes, and make sure emergency bill support is ready if this fossil fuel price crisis deepens. This includes targeting any financial support available at those who have long-term lung problems as one of the priority groups.

“No one should be made ill because they cannot afford to heat their home.”

Dr Andy Whittamore, a GP and clinical lead at Asthma + Lung UK, said:

“Even before events in the Middle East raised the spectre of higher energy bills, we were already concerned about the wet weather increasing damp and mould and affecting people’s health.

“For the seven million people in the UK living with asthma and the three million people living with COPD being exposed to a trigger like mould can bring on a potentially fatal asthma attack, or cause a COPD flare-up requiring hospitalisation.”

Ministers must learn lessons from the last energy crisis

The energy industry has warned that the UK must prepare now for another energy price shock as volatility in global fossil fuel markets continues.

In a new briefing, A Better Approach to Energy Bill Support, Energy UK says government should develop plans to support households if bills rise again later this year. Some analysts suggest typical annual energy costs could increase by around £300, with higher rises possible if global tensions continue.

The report argues that the UK should learn lessons from the last crisis, when universal support schemes cost more than £35bn. Instead, future support should be better targeted at households most in need, while any universal measures should focus on lowering electricity costs.

Energy UK is calling for a rapid taskforce involving government, industry and civil society to improve targeting systems and ensure support can be delivered quickly if prices rise again.

The warning comes as wider debate continues about how best to protect households from energy price shocks.

New analysis from the University of Oxford’s Smith School found that a fully renewable UK energy system could cut household energy bills by up to £441 a year. In contrast, maximising oil and gas extraction from the North Sea would save households between £16 and £82 a year, but these savings would only be realised if the tax revenues from extra drilling were redistributed directly to households.

Dr Anupama Sen, co-author of the analysis, said claims that North Sea drilling would significantly reduce household bills were “sheer fantasy”.

A spokesperson for the End Fuel Poverty Coalition said:

“Energy prices are once again being driven by instability in global fossil fuel markets and households are being left exposed to the consequences.

“Millions of families are still recovering from the last energy crisis, with record levels of energy debt and many already struggling to afford today’s bills. Without action, another price spike could push even more households into fuel poverty.

“We support calls for the Government to convene a taskforce and prepare an emergency energy support framework that can protect those most at risk while prices remain volatile. That means targeted bill support, more help for households using LPG, heating oil and heat networks, plus urgent action to tackle the legacy of energy debt.

“But this crisis also reinforces the long-term lesson: as long as the UK remains dependent on expensive oil and gas, households will remain exposed to global shocks. That means we need action to bring down energy usage via building upgrades as well as action to bring down electricity prices through market reform and more renewables.”

Heating oil households to receive support as ministers consider market crackdown

The Prime Minister has announced a £53 million support package to help vulnerable households that rely on heating oil as global fossil fuel prices surge following conflict in the Middle East.

The Government says the funding will provide targeted support to households most exposed to rising costs, while also signalling that ministers may consider stronger regulation of the heating oil market. In England, it is expected to be available via the local authority-delivered Crisis Resilience Fund.

However, details on eligibility, delivery and how the scheme will operate across Scotland, Wales and Northern Ireland have yet to be published.

Ministers have also signalled that stronger oversight of the heating oil market may be introduced, with the Competition and Markets Authority asked to monitor prices closely and act if companies exploit the current crisis.

A spokesperson for the End Fuel Poverty Coalition commented:

“This announcement recognises that households who rely on heating oil are uniquely exposed to fossil fuel price shocks, the market lacks the consumer protections seen elsewhere in the energy system and government intervention is necessary when prices surge.

“The targeted support and steps towards stronger protections are welcome. However, the financial help announced today is relatively limited and will take time to reach households that are suffering now. We also need more details about eligibility and how the scheme will work in Scotland, Wales and Northern Ireland.

“If prices remain high ministers will need to go further with a stronger Alternative Fuel Support Scheme to ensure off-gas-grid households – including those in park homes, care homes and on heat networks – are properly supported.

“The longer-term solution must be helping oil-heated homes to move away from expensive fossil fuels through insulation, alternative heating systems, heat pumps and community energy so households are not repeatedly exposed to global energy shocks.

“We would also urge Ministers to talk to charities, advice providers and experts now about the measures that may be needed from 1 July after the current price cap protection ends.”

Caroline Abrahams CBE, charity director at Age UK, said:

“We welcome the Government’s recognition that households using heating oil require support, and it’s good that funding will be made available. However, we need to see the detail on how this will be delivered, and our strong sense is that £53 million is unlikely to match the scale of the challenge, given the number of households affected, many of them headed by older people who are already struggling with ongoing cost-of-living pressures.

“It’s also important to recognise that there are other groups of older people who are also facing immediate price rises – including some heat network consumers, park home residents and care home residents – who are not covered by this plan.

“For context, even before prices started rising because of the war, nationally representative polling commissioned for Age UK found that this winter one in three people aged 66+ (35%) – around 4.2 million – had recently cut back on heating or powering their homes. The clear implication is that many older people simply cannot cope with another increase in energy costs.

“We believe the Government should go further than has been announced today. Local authorities need sufficient resources and flexibility to respond quickly when people face sudden financial crises, and the scale of support on offer must reflect the level of need we’re seeing among older households.”

Government warns suppliers over heating oil prices

The cost of heating oil has surged sharply over the past two weeks as conflict in the Middle East pushes global oil markets higher.

Data suggests that the cost of filling a heating oil tank has doubled in less than 14 days. [1]

Unlike households using gas or electricity, homes heated by oil are not protected by the energy price cap, meaning global price shocks are felt almost immediately.

Around 1.5 million households across the UK rely on heating oil, with particularly high levels in rural areas and in Northern Ireland where the majority of homes use oil for heating.

In the past 48 hours, ministers have signalled growing concern about the impact of rising oil prices on household bills.

During a visit to Belfast, the Prime Minister warned heating oil suppliers that prices must be “fair, transparent and justifiable”, saying the Government “will not tolerate profiteering” as global tensions push energy costs higher.

The Government has also asked the Competition and Markets Authority (CMA) to keep heating oil prices under close scrutiny alongside petrol and diesel prices.

Separately, the Chancellor and Energy Secretary have held talks with fuel retailers in Downing Street, warning companies not to exploit global instability by increasing margins.

A spokesperson for the End Fuel Poverty Coalition, commented:

“It is right that the Government is asking the Competition and Markets Authority to keep a close eye on heating oil prices as global tensions drive up costs.

“Homes that rely on heating oil sit completely outside the energy price cap. That means as global oil markets spike, families in rural and off-grid homes have seen the costs they are expected to pay more than double in less than two weeks.

“While transparency and scrutiny are essential to ensure households are not being overcharged, it is becoming increasingly clear that the Government may have to act in the weeks ahead to provide further protections and support for these households. Longer term, the lesson is clear: leaving so many homes dependent on volatile fossil fuel markets exposes them to repeated price shocks.”

[1] Data from BoilerJuice shows a price of 63.1p per litre on 1 March has risen to 128.1p per litre on 13 March.

Fossil fuel price spike could cost UK more than entire net zero transition

The UK could face far greater costs from future fossil fuel price shocks than from the transition to clean energy, according to new analysis from the Climate Change Committee (CCC).

The independent climate advisers say a single energy price spike similar to the one triggered by Russia’s invasion of Ukraine in 2022 could cost the UK economy around £222 billion, roughly double the total net cost of moving to net zero between now and 2050.

The findings come as oil and gas prices have surged again since the start of the American / Israeli attacks on Iran and conflict in the Middle East, underlining the risks of relying on globally traded fossil fuels.

A spokesperson for the End Fuel Poverty Coalition said:

“Households have already learned the hard way that fossil fuel price shocks come with a very real cost.

“With oil and gas prices already surging again because of the conflict in the Middle East, families are being reminded just how exposed the country remains to volatile global markets. If these higher prices persist, we are likely to see a fresh hike in energy bills from 1 July as the impact feeds through to the next price cap.

“It remains to be seen how severe the current price spike will be for households, but it underlines that the only lasting protection is to cut our reliance on fossil fuels through better insulated homes, homegrown renewable energy and fairer energy pricing so bills are no longer dictated by global gas markets.”

Scrapping home upgrade funding could leave households at greater risk

The leadership of Reform staged a petrol station stunt promising cheaper fuel and energy bills by attacking what they call “green levies” which are used to long-term heating and energy efficiency programmes.

As global gas prices surge following the conflict with Iran, the stunt highlights how Britain’s continued dependence on oil and gas leaves households exposed to global price shocks.

A spokesperson for the End Fuel Poverty Coalition, which campaigns to lower home energy costs, said:

“Scrapping support for heat pumps and energy efficiency programmes would lock the country into a continued cycle of high energy prices and fuel poverty.

“The reason households are facing rising costs today is because the country remains heavily dependent on oil and gas whose prices are set on volatile global markets.

“As the conflict in the Middle East shows, when tensions rise anywhere in the world the price of gas quickly follows. That is what pushes up energy bills, not investment in cleaner heating.

“The real way to cut bills for working people is to reduce the amount of gas we burn through better insulated homes, expand homegrown renewable power and reform energy pricing so households are no longer exposed to constant gas price shocks.

Robert Palmer, deputy director of campaign group Uplift, added:

“It’s clear that the only route to lower bills and secure energy is to free ourselves from oil and gas through homegrown renewable energy and upgrading homes, whether that’s with solar panels or heat pumps. This is just common sense in today’s world

“New North Sea drilling will make no difference to UK energy bills and have no meaningful impact on the UK’s supply of gas.”