News - End Fuel Poverty Coalition

Ministers face voter backlash if Warm Homes Plan is cut

Trust in Labour will be further threatened if the Chancellor scales back funding for home insulation and lowering energy bills, according to new polling released today, in echoes of the row over Winter Fuel Payments.

Recent media reports suggest that the Chancellor is considering reducing the funding available to insulate homes. [1]

The research by Opinium reveals that nearly half (46%) of Labour voters say that any backtracking from Labour’s manifesto commitment to invest in insulating the country’s poor housing stock would further reduce trust in Sir Keir Starmer’s government. [2]

Among those who voted for Labour in the last general election but aren’t currently planning on voting for them again, well over half (56%) say it would reduce their trust in Labour – damaging the party’s attempts to woo voters back from Reform, the Lib Dems, Greens and others. [3]

Almost half (48%) of Labour voters said the warm homes election promise was a factor in their decision to vote for the Labour Party.

Labour promised to invest £13.2bn in a Warm Homes Plan to help improve the country’s leaky housing, which is making people ill and driving up NHS demand. A recent Medact survey found that three-quarters of front-line clinicians regularly see patients made ill by poor housing conditions, and almost half have discharged patients into homes they knew would make them sick again.

In the run-up to the General Election, over half of prospective Labour voters (59%) said they supported a funded nationwide insulation programme to slash deaths caused by cold, damp houses. Meanwhile other researchers found that 59% of voters opposed stripping all pensioners of Winter Fuel Payments. [4]

In the new research, pollsters found that nearly all voters (87%) believe it is important for political parties to stand by their manifesto commitments.

Ed Matthew, UK Director for the climate change thinktank E3G said:

“Cutting a programme that will make immediate and direct improvements to people’s lives would backfire.

“The public is sick of wasting money trying to heat cold, leaky houses and want this government to honour its manifesto pledge. If they fail to do so it would demonstrate that Labour have not learned from the Winter Fuel debacle at all.”

A spokesperson for the End Fuel Poverty Coalition, said:
“This polling clearly shows that it is now a case of heat or defeat for the Government.

“The Labour Manifesto said the promised funding will offer grants and low interest loans to support investment in insulation and other improvements such as solar panels, batteries and low carbon heating to cut bills.

“Either they back a Warm Homes Plan to the full extent promised in the manifesto, or they will be punished at the ballot box.

“The Chancellor must not be able to engineer another ‘Winter Fuel Payment’ disaster by refusing to help tackle fuel poverty and MPs should make that clear.”

The polling comes on the day that health workers will deliver an open letter to Secretary of State for Health and Social Care Wes Streeting MP, endorsed by several royal colleges. The letter urges the Government to honour its election promise to reduce energy bills and allocate at least £13.2 billion to a nationwide insulation programme in the upcoming Comprehensive Spending Review.

Maria Carvalho, spokesperson for Medact, commented:

“It’s simple. All we want is what was promised in the election campaign. That means a fully funded Warm Homes Plan, investment in green jobs, skills, and training, stronger protections for renters after upgrades are completed and delivery of high-quality home retrofits.”

In recent days groups of businesses and over 50 senior figures from charities have written to the Treasury to express concerns that the Warm Homes Policy policy is facing severe cuts.

Deputy Director of Uplift, Robert Palmer, added: “The nearly nine million people up and down the country living in cold damp homes, desperately need the Government to commit to the Warm Homes Plan.

“It is so important to them that this research reveals 46% Labour voters will lose further trust in the party if it backtracks on this key pledge.

“There is now deep concern following reports that the Treasury is looking to trim the amount the government has pledged to spend on insulating homes

“We have some of the leakiest housing stock in Europe and the priority should be making those fit to live in through the promised £13.2 billion Warm Homes Plan announced in the 2024 manifesto.

“We’re calling on the Government to commit to this funding now, which is also crucial to their election promise to bring down energy bills. If they don’t it could be a broken promise too far for many of those who put their faith in voting for Labour last July.”

ENDS

[1] Sources: The Times (27.05.25), the FT (05.05.25), Politico MEC Bulletin (29.04.25)

[2] Opinium conducted a politically and nationally representative online poll of 2,050 UK adults from 14th – 16th May 2025.

[3] Of the Labour voters polled, the research suggests 54% would still vote for the party, but 12% would vote Reform, 7% would vote Lib Dem, 6% Lib Dem, 3% Conservative with the others choosing another party or now being unsure of their vote.

[4] “Over half of prospective Labour voters…” Opinium conducted a politically and nationally representative online poll of 2,185 UK adults from 29th – 31st May 2024.

Two thirds of people (67%) were also aware of the move to remove winter fuel allowance payments from pensioners, apart from those who receive means-tested benefits, and 59% opposed it, with only 28% in favour. YouGov / ECIU.

MPs warned of hidden pensioner poverty as Winter Fuel Payment u-turn confirmed

3.2 million pensioner households are facing unaffordable energy costs MPs heard today, with around 964,000 households in deep fuel poverty, meaning they spend more than 20% of their income on energy. [1]

On the day that the Prime Minister announced a potential u-turn on the decision to axe Winter Fuel Payments for millions of pensioners, MPs on the Work and Pensions Select Committee heard evidence on the tests any changes to the Payments need to pass.

A spokesperson for the End Fuel Poverty Coalition commented:

“Any u-turn is welcome, but what matters now is the detail, especially if Winter Fuel Payments are not restored to all pensioners.

“There are three tests we will apply to any announcement based on thresholds, tapers and wider targeting to see if ministers are getting the message.

“We need to see the Pension Credit threshold raised significantly, a taper system introduced to stop people missing out on Winter Fuel Payments for being just £1 over the line, and wider targeting of this support, including for those on non-means tested disability benefits or Carer’s Allowance.

“Above all, ministers must learn lessons from this scandalous decision. Sadly, there are rumours that the Chancellor is planning to water down the Warm Homes Plan promised in the Labour manifesto and reduce the £13.2bn promised to it.

“Any dilution of the proposals will mean fewer older people can be helped to reduce their energy use in a safe way.

“Pensioner fuel poverty is often hidden away behind closed doors and ultimately pensioners need warm, energy-efficient homes, not more sticking plasters.”

The Committee’s evidence session also heard that health workers are also raising an alarm about pensioner poverty.

A recent Medact survey found that three-quarters of clinicians regularly see patients made ill by poor housing conditions, and almost half have discharged patients into homes they knew would make them sick again.

According to Age UK, 35% of pensioners earning less than £20,000 said their home was too cold most or all of the time this January, and nearly half said they were worried about the effect of energy prices on their health.

The Coalition is also urging MPs to accept the recommendations of the Future of Local Welfare Inquiry report and make the Household Support Fund permanent. Campaigners have also called MPs to back reform the Warm Home Discount, and modernise the Cold Weather Payment into an “Extreme Weather Payment” that reaches vulnerable households before temperatures drop dangerously low.

MPs also heard that it was vital that there is the introduction of a unit rate-based social tariff to permanently reduce bills for those on low incomes, with medical needs, or in energy-inefficient homes. The tariff must be automatically applied using data shared between the DWP, NHS, HMRC, and energy suppliers, and funded progressively—ideally through general taxation or a central industry levy.

ENDS

[1] Tables in Annex A and B [pdf]. Official government figures used a different, flawed, model of calculating fuel poverty. For more discussion on this issue, read the Coalition’s response to the Government’s fuel poverty strategy review. In 2023 [pdf], around a third of fuel-poor households don’t qualify for any benefits – and that was before the WFP cuts, so this figure is likely to have risen.

Report reveals scale of health crisis fuelled by poor housing

A new landmark report by health charity Medact reveals that three quarters of health workers regularly see patients whose poor housing is harming their health – with more than 1 in 10 witnessing this almost every day.

Drawing on an opinion poll of over 2,000 healthcare workers, Home Sick Home: Frontline views on the public health crisis of unhealthy homes explores the public health impacts of the UK’s housing crisis on patients, health workers, and the NHS. The study found that nearly half (45%) of health workers have had to send a patient home knowing their housing would make them ill again.

“We see the same issues time and again – families living in mould-ridden, insecure homes, children developing asthma and anxiety, elderly people afraid to turn on their heating,” said Sophia, a clinical psychologist quoted in the report. “We’re not treating patients. We’re sending them back into the very conditions that made them sick.”

Key findings:

70% regularly see mental health conditions caused or worsened by housing issues
65% see patients living in excessively cold homes; 61% hear of damp and mould; 63% see unaffordable rent driving ill-health
64% regularly treat children whose health problems are likely linked to insecure housing; 67% say damp and mould are causing children’s respiratory issues.

The report echoes previous findings of research by the Social Workers Union which revealed that over a fifth (21%) of social workers working with children, young people and families have seen their service remove a child or children from their family in the last three years where unsafe or inappropriate housing conditions was a key contributing factor.

The report says that the crisis is especially acute among vulnerable groups, with older adults, disabled people, and children experiencing housing-related illness. From mental health crises in new parents to chronic asthma in children, the testimonies included in the report reveal how unsafe housing is deepening health inequalities across the UK. The survey found that 66% of respondents see disabled people in unsuitable homes likely making them ill at least once a month.

“Given everything we know about the positives of good-quality housing, I never thought I’d see a rise in Victorian-age diseases,” said children’s doctor Krishnan in the report.

From cold, damp, overcrowded homes to skyrocketing rents and constant eviction threats, the report paints a picture of a housing system in collapse – and a public health crisis that is impacting both people’s health and the NHS.

It shows that health workers back political action to protect patient health and the NHS: 69% believe making renting more affordable would reduce the burden on the NHS, whilst 58% say increasing the supply of social housing would ease NHS pressures

More than two thirds (69%) agreed with the statements “I feel powerless to support my patients with their housing conditions” and “government spending to prevent illnesses created by cold homes is better for the NHS than having to spend money to nurse patients back to health”.

The report sets out ten recommendations, including rent controls, a national retrofitting programme, building more social housing, and a social energy guarantee to ensure no one has to choose between heating and eating.

Medact member and children’s doctor Dr Amaran Uthayakumar-Cumarasamy said:

“Colleagues feel a deep-seated sense of helplessness and feel redundant in their capacity to make meaningful health improvements in the lives of patients. Coupled with the existing pressures of working in a system that’s under-resourced, this leads to apathy. It’s tempting to think that the NHS alone can socially prescribe its way out of the housing crisis, but my experiences and those of colleagues suggest this simply will not scratch the surface let alone bring meaningful and lasting change. Yes, the NHS does need resourcing but if we’re serious about ‘an ounce of prevention is worth a pound of cure’, then that needs to be translated into policy.”

Laura Vicinanza, Senior Policy and Stakeholder Engagement Manager, Inclusion London said:

“It is no secret that disabled people are at the sharpest end of the housing crisis. Yet, this problem has been ignored for decades. Too many Disabled people are trapped in inaccessible homes, battling evictions, and facing skyrocketing rents – often forced to cut back on essentials just to afford their housing costs. Medact’s new report uncovers a very grim reality: poor and unaffordable housing doesn’t just worsen people’s existing health conditions—it creates new ones, with health professionals left to pick up the pieces of a broken housing system. But it doesn’t have to be this way. The Government has the power to solve this crisis. They can act now by making rents more affordable and kickstarting a revolution in accessible social homebuilding. We cannot afford to wait any longer.”

Dr Abi O’Connor, researcher at the New Economics Foundation, said:

“Private landlords have been allowed to increase rents to eye-watering levels and now we’re seeing the consequences – it’s making people and our economy sicker. If the government are interested in improving the economy for ordinary people, it is clear they must address the plague of unaffordable rents. In the short term they should introduce rent controls to give people stability, and in the long term they will need to build more social housing which is the only way to provide people with safe, affordable homes .”

A spokesperson for the End Fuel Poverty Coalition, commented:

“Addressing the housing challenge is more than health workers can do themselves.

“Not only do we need to see investment in a £13.2bn Warm Homes Plan to help improve housing conditions, but we also need a full range of fully-functioning and well-resourced public services.”

Looming crisis for 300,000 households on RTS meters

Ministers and Ofgem have been warned of a “looming crisis” for households on old-style Radio Teleswitch Service (RTS) meters in a letter from the End Fuel Poverty Coalition.

The stark warning comes as the RTS meter replacement programme shows signs of failing meaning urgent action will be needed to prevent vulnerable households potentially being left without heating and hot water.

In a letter addressed to Miatta Fahnbulleh MP, Minister for Energy Consumers, and Ofgem Chief Executive Jonathan Brearley, the Coalition raised serious concerns about the pace and communication of the meter replacement effort, which affects hundreds of thousands of households across the UK.

The RTS system – used by older electricity meters to control heating and hot water – will be switched off later this year. If an RTS meter is not replaced before the service is switched off, households risk losing access to heating and hot water, particularly where electric storage heating is used.

Customers may also lose the ability to access cheaper off-peak tariffs, leading to higher energy bills, and could face inaccurate or inconsistent billing or in some cases, the meters may stop working properly altogether.

Ofgem has been running a public awareness campaign on the issue with Lorraine Kelly explaining how to check for an RTS meter.

But the Coalition says the replacement programme is falling dangerously behind schedule, with energy suppliers unable to meet existing targets and thousands of customers, especially in rural Scotland, still without a plan for replacement.

“Based on our members’ conversations with energy suppliers, we estimate that in Scotland alone, tens of thousands of RTS meters are yet to be addressed, leaving many consumers in limbo,” the letter states.

The letter also challenges the lack of clarity around the regulator’s “no detriment” commitment, which is designed to ensure that people who move from an RTS meter to a new connection do not have to pay more for their energy.

However, there are warnings that without firm guarantees on this commitment, vulnerable consumers could face higher costs or service disruptions.

Further concerns are also raised about contradictory advice being issued by energy firms to consumers and inconsistent billing practices, with reports of customers being charged double standing charges due to legacy meter configurations.

BBC Radio 4’s You and Yours programme on 28 April highlighted the concerns raised in the letter and an Energy UK spokesperson told the programme that at the end of March 2025, 430,000 households remained on an RTS meter and efforts to replace them stood at 1,000 installations a day.

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented:

“Our member organisations across the country will continue to do all they can to support the transition and raise awareness of the switch, but urgent action is now required. There is a very real risk that over 300,000 households will find their RTS meter stops working come 1 July 2025.

“With pressures on the replacement programme growing and with limited engineer availability, especially in rural areas, there’s a real risk of prolonged disruption, particularly for vulnerable households.

“Government, regulators and energy firms need to face up to the looming crisis and ramp up efforts to help people switch. At the same time we now need to ensure contingency measures are in place for those who do not make the deadline and require energy suppliers to ensure fair metering and billing practices.”

The letter was also copied to devolved administrations in Scotland and Wales, including Gillian Martin MSP and Rebecca Evans MS.

Frazer Scott, Chief Executive of Energy Action Scotland, said:

“Time and time again consumers are left in the dark by the Government and an energy industry failing to deliver on its promises to deliver improvements.

“Let’s not forget that many of these firms are making significant profits from customers and yet their customers, including many vulnerable people, may be left without working heating and hot water or facing the prospect of spiralling costs in just a few weeks time.

“The impact of failure in the switchover process on the health and wellbeing of people across Scotland don’t bear thinking about.”

ENDS

The letter can be read in full in this pdf.

Image of an RTS meter by Richard Harvey – Own work, Public Domain, Wikipedia: https://commons.wikimedia.org/w/index.php?curid=3063595

Social workers report cold homes crisis for children

As millions of households struggled through last winter in cold damp homes, the impact on children has been revealed in newly released data.

Over a fifth (21%) of social workers working with children, young people and families have seen their service remove a child or children from their family in the last three years where unsafe or inappropriate housing conditions was a key contributing factor. [1]

Unsafe housing conditions can include maintenance issues, mould, damp, insect or vermin infestations or cramped conditions.

More broadly, 78% of all social workers strongly agree that housing conditions are a concern for people they support, with over a third (36%) strongly agreeing that over the last three years, the number of people they help live in unsafe or inappropriate housing conditions which has increased.

The research among social workers was conducted by the Social Workers Union and follows previous reports by ITV that the cost of living crisis has led to a third of UK social workers witnessing child removals in the past three years where poverty or financial poverty has been a key factor.

John McGowan, General Secretary of the Social Workers Union, commented:

“Removal of a child from their family is always a last resort, but sadly when conditions become dangerous action has to be taken.

“This data shows that the reality of life in modern day Britain is a struggle for many households. The country’s poor housing stock poses a danger to the wellbeing and development of children and poses a risk to the health of many adults with pre-existing health conditions.

“Social workers go above and beyond to help those at most risk in the country and are highlighting safeguarding concerns on a regular basis. However, addressing the housing challenge is more than social workers can do themselves.

“Not only do we need to see investment in a £13.2bn Warm Homes Plan to help improve housing conditions, but we also need a full range of fully-functioning and well-resourced public services.

“Ministers must own up to the fact that it is only the Government that can provide the funding to reverse the decline in public services and ensure the most vulnerable get the support they need.”

Among all social workers, housing conditions are a concern with large numbers strongly agreeing that ‘the number of people I work with who are living in unsafe or inappropriate housing conditions’ has increased over the last 3 years.

However, the results varied across the UK, with those in the North East of England, London and Wales most likely to report that housing was a major concern. [2]

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

“Millions of people from the youngest children to our oldest pensioners are living in cold damp homes, unable to heat their homes to a safe temperature or racking up massive debts – with some even turning to loan sharks.

“To add insult to injury, around a quarter of what is spent on heating our draughty properties is wasted, because the UK’s old housing stock is some of the worst insulated in Europe.

“Ministers are making the right noises when it comes to helping improve housing, but the Chancellor needs to put the money where their mouth is and commit the funding needed for a Wam Homes Plan which will help people improve the energy efficiency and insulation of their homes.

“And until these reforms are delivered, Ministers must not forget about the millions of people suffering in cold damp homes – they should provide enough support to ensure that everyone is able to stay warm every winter.”

Amaran Uthayakumar-Cumarasamy, an NHS Children’s Doctor based in South Yorkshire, commented:

“Some of the most acute harms of the UK’s unsafe, unaffordable and insecure housing are shouldered by our most disadvantaged children and young people.

“Whilst the findings of this report are shocking, they won’t come as a surprise to many of us working in the NHS. Increasingly, children’s health professionals across the UK are witnessing cases of respiratory illness, undernutrition and worsening mental health all linked to undignified housing circumstances.

“What’s more, rather than providing a foundation for their health, unfit, unsafe and expensive housing continues to severely impact their educational attainment, social health and life chances.

“Without radical change towards fairer policies that support affordability, energy efficiency, accessibility and security of tenure, housing will continue to entrench and reproduce childhood mass illness and stark disadvantage.”

Matthew Scott, senior policy officer at the Chartered Institute of Housing, added:

“Warm, safe homes are the cornerstone of our health, but this research demonstrates the life changing impact housing can have on children’s wellbeing.

“Local authorities’ Housing Revenue Accounts are stretched to their limit following decades of rent cuts and caps over the last ten years, and it is nearly three decades since the last significant central investment in upgrading homes, which came through the transformative Decent Homes Programme.

“The government should seize the opportunity to reverse the cycle of underinvesting in housing quality, so every child has a safe, secure home. In its forthcoming Spending Review, we urge the government to set out a new programme of investment in existing homes, including fully allocating the £13.2 billion promised for its Warm Homes Plan and taking steps to put the finances of housing providers on a more stable footing.”

ENDS

[1] 2,295 members of the Social Workers Union responded to a survey conducted online between 3 and 21 October 2024. Respondents were screened to ensure active employment in social work. ITV News broadcast a report with unique access behind the scenes with a social work team on 4 December 2024.

[2] Regional / National differences for this question:

North East 41%
London 41%
Wales 41%
South East 39%
Yorkshire & Humber 39%
North West 39%
East Midlands 38%
Northern Ireland 37%
West Midlands 32%
South West 28%
Scotland 24%
East of England 26%

Featured image posed by model. Signed model release on file with Shutterstock, Inc (asset ID 510078436).

The good, the bad and the ugly sides of energy market trading revealed

Reforming the energy market trading system could save households £173.34 per year on their electricity bill, according to a new report. [1]

The system sees units of gas and electricity traded on international markets and the analysis by Future Energy Associates sets out “the good, the bad and the ugly” sides of this process.

Chief among the “bad” issues identified in the report is the role of speculative trading where companies trade energy solely for financial gain without directly delivering electricity to consumers.

This type of trading increases the frequency and volume of trades, which can impact overall market prices. Speculative traders attempt to profit from price fluctuations, buying low and selling high, potentially adding to price volatility.

A significant number of the trading firms place trades on market exchanges for electricity and gas for a specific location. However, often these trading houses are based offshore or structured to avoid direct UK tax obligations, allowing them to operate with fewer tax liabilities compared to domestic companies. This setup enables such firms to retain a larger share of profits.

These dedicated trading firms that engage in high-volume trading to capitalise on price fluctuations and focus on profit driven strategies include Vitol (annual profits $15.1bn), Trafigura ($7.4bn), Glencore ($5bn), and Mercuria ($2.7bn). Recent supply shocks, driven largely by reliance on foreign gas, have allowed trading teams to capitalise on market volatility.

The report did find that some energy trading can be “good” and help keep prices stable [2], but there are also significant issues with the “ugly” current system used by energy retailers.

Retailers are required to be more risk-averse and lack the technical expertise of other trading houses and take on risk premiums when setting household tariffs, ultimately passing these costs onto consumers.

Energy retailers often engage in “Over The Counter trading” (OTC). This involves brokers and financial firms profiting for providing liquidity. Every trade comes with extra costs like fees and commissions, which ultimately increase household energy bills and can make prices even more unstable.

The report highlights that the direct impact of trading activities on consumer bills via the Ofgem price cap is challenging to quantify with a lack of transparency making it difficult for consumers and industry stakeholders to assess how much trading influences the final capped prices.

However the researchers have recommended that changes are made to the market structure – including a more active role for GB Energy to eliminate market inefficiency in trading. The researchers calculated that eliminating these market inefficiencies in a perfect world could save 6.4 p/kWh off every unit of electricity used.

This could potentially save UK electricity bill payers around £4.51 billion annually, with each household saving about £173.34 per year on their electricity bill.

Report author, Dylan Johnson, from Future Energy Associates, commented:

“Volatility in energy prices benefits speculative traders who use advanced algorithms to exploit rapid price changes. Equipped with high-frequency trading technology, these traders can profit from even minor price swings throughout the day, buying low and selling high within milliseconds.

“This speculative activity often drives prices away from the true cost of generation, creating added instability that ultimately impacts consumer prices.

“Key players, including independent traders like Vitol, Trafigura, Gunvor, and Mercuria, have significantly benefited from increased profits, with gross earnings for the sector reaching $148 billion in 2022. This growth was spurred by volatile markets, especially in gas and power, which have now surpassed oil as the primary profit drivers.”

A spokesperson for the End Fuel Poverty Coalition, commented:

“This report reveals the good, the bad and the ugly sides of market trading.

“At its worst, trading creates a system that is skewed against consumers with billionaire trading firms, hedge funds and banks profiting from volatile energy prices.

“These groups are also gambling with the ability of hard stretched households to keep warm every winter and put hot food on the table.

“Ministers and MPs should urgently investigate how these firms operate and the impact they are having on energy bills. More widely, the launch of GB Energy should act as an opportunity to reform the trading market so it improves security and brings down the cost of energy.”

Caroline Simpson, Campaign Manager for Warm This Winter, which commissioned the study, added:

“Yet again we see how the energy sector trades on people’s misery. It’s unfair and ending this could save UK electricity bill payers around £4.51 billion annually, that’s a much-needed £173.34 per year for households.

“We need reforms like this to kick in urgently, including making Ofgem get to grips with the industry and closing loopholes that netted a £4 billion windfall for network companies we are demanding is given back to billpayers.

“This government is on the right path after over a decade of neglect and must continue their commitment to serious investment in home insulation and ramping up our renewable energy production to bring down bills. That will have the added benefit of boosting our energy security during these uncertain times.”

ENDS

[1] Tariff Watch – Impacts of Trading, FEA / Warm This Winter, April 2025 (pdf).

[2] Benefits of so called “physical trading” include balancing supply & demand (ensuring electricity production matches real-time demand, preventing waste and shortages), supporting grid flexibility & renewables (balancing the grid using batteries, EVs, and demand response, making it easier to integrate renewable energy) and in some cases lowering costs (by encouraging competition, helping to keep energy prices down).

Coalition sets out plan to tackle fuel poverty in strategy review

The End Fuel Poverty Coalition has submitted its response to the government’s review of its fuel poverty strategy, calling for urgent and sweeping action to help the millions of people struggling to afford to heat their homes.

The Coalition warns that unless ministers take immediate steps, people will continue to suffer needlessly in cold and damp homes. At the heart of the new strategy long-term investment in improving home energy efficiency is needed, particularly for those most in need.

One of the group’s most pressing demands is for ministers to stick to their original manifesto pledge of £13.2 billion to fund a nationwide Warm Homes Plan. This plan would help insulate homes, install low-carbon heating systems, and make energy-saving upgrades more widely available.

Campaigners argue that current schemes are not working fast enough with only 59,000 people lifted out of technical fuel poverty last year.

The Coalition also urges ministers to adopt a fairer way of defining fuel poverty and move away from a measure that focuses largely on property energy efficiency and towards a new definition based on whether a household spends more than 10% of its income on energy.

As well as restoring support for disabled people, older households, and families with young children, campaigners have called for a permanent social energy tariff to be introduced. This would offer discounted energy unit rates for low-income households to help make bills more manageable.

The Coalition also criticises the current energy market for being unfair to those on prepayment meters or in all-electric homes, calling for fairer pricing, stronger consumer protections, and more transparency.

Finally, the response stresses the importance of accessible, community-led energy advice, calls on energy firms to improve customer service and support systems for vulnerable people and urges the government to empower local authorities and health services with funding to support fuel-poor households effectively.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Fuel poverty is not just a financial issue, but a national health crisis that needs a bold, urgent response from all corners of government.

“Ministers must act now to invest fully in the £13.2 billion Warm Homes Plan to boost energy efficiency, reform the energy market and provide proper support to those who need it most.

“This includes expanding immediate financial help, including changes to the Warm Home Discount, more generous Cold Weather Payments paid in advance of severe weather, and the restoration of Winter Fuel Payments to a wider group of older and disabled people.

“With the right leadership and commitment, we can end fuel poverty once and for all.”

ENDS

The key recommendations set out in the End Fuel Poverty Coalition’s response to the fuel poverty strategy review include:

Redefining official fuel poverty measures and recognising fuel poverty as a health issue: introduce a 10% measure while maintaining the 2030 target.
Increasing government funding: commit to long-term investment in home energy efficiency and financial assistance programmes targeted at fuel poor households, including the Manifesto commitment of £13.2 billion for the Warm Homes Plan.
Accelerating energy efficiency upgrades: scale up retrofitting programmes and ensure stronger links between fuel poverty and heat network policies.
Enhancing targeted support: improve identification and assistance for the most vulnerable households, addressing the impact of benefit cuts.
Reforming energy pricing and markets: implement fairer pricing structures, market reforms to bring down prices and stronger consumer protections.
Empowering local authorities: provide councils with the resources needed to lead fuel poverty initiatives.
Expanding energy advice services: ensure tailored guidance on low-carbon heating and energy efficiency is widely available.

The full response is available to read online: https://www.endfuelpoverty.org.uk/news/reports-and-correspondence/ [pdf]

Image credit: eyematter / Shutterstock.com

Energy industry profits hit half a trillion pounds while bills rise

Energy giants have pocketed over £500 billion in profits since the energy crisis started according to an updated analysis of company reports. [1]

Researchers working for the End Fuel Poverty Coalition examined the declared profits of firms ranging from energy producers (such as Equinor and Shell) through to the firms that control our energy grid (such as National Grid and UK Power Networks) as well as suppliers (such as British Gas).

As energy prices increase by 6.4% this week for households across the country, the analysis shows that almost half of the total profits since 2020 (£207bn) are generated by firms with extensive involvement in the gas industry.

The cost of every unit of gas used will surge by over 10% from 1 April, meaning the cost of gas is now double what it was in winter 2020/21. The cost of gas not only affects households’ ability to keep warm, but also sets electricity prices up to 40% of the time under energy market rules.

Also profiting are the firms and business units responsible for electricity and gas transmission and distribution. These are the “network costs” consumers pay for maintaining the pipes and wires of the energy system and are usually paid for through standing charges on energy bills.

But earlier this year, Citizens Advice found that these firms had made an estimated £4bn in extra profits after a “misjudgement” by regulator Ofgem. Previous research also found that the same firms underspent on vital grid improvements by almost £1bn.

A spokesperson for the End Fuel Poverty Coalition, commented:

“As energy prices remain at levels way above the 2020 benchmark, the energy industry is taking us for April fools. We need politicians and regulators to act to bring down energy bills now.

“This means radical reform of the electricity pricing markets, investment in homegrown renewables and taking on the vested interests of an energy industry which makes billions of pounds of profits every year at consumers’ expense.

“In addition, we need to see steps taken immediately to help households reduce energy consumption in a safe way, by improving energy efficiency of buildings. This is why MPs need to push the Chancellor to commit the full £13.2bn funding needed for the Warm Homes Plan through the Comprehensive Spending Review.”

Maria Carvalho, from Medact which represents frontline health workers, commented:

“The record-breaking profits of energy giants come at an unbearable cost to public health.

“Cold homes cause illness and drive patients into already overwhelmed NHS services, while energy debt traps families in a cycle of financial and mental distress.

“Every pound pocketed by these corporations is a pound that could have kept someone warm, well, and out of hospital. The government must act now to rein in energy profiteering and invest in a fair, sustainable energy system that protects health rather than harming it.”

Jonathan Bean from Fuel Poverty Action added:

“Without radical reforms, millions of us will continue to suffer and die in energy starvation due to inflated energy pricing. We are not getting the benefit of our increasing supply of cheap renewable energy.”

Warm This Winter spokesperson Caroline Simpson said:

“Frankly this is shameful. Whilst the whole of the UK struggles with ‘Awful April’ these energy profiteers are celebrating ‘Awesome April’ with their latest results showing they made over half a trillion pounds in profits since 2020.

“It’s incomprehensible in so many ways and plain wrong that a mere 20 companies have made so much money out of people’s misery. The industry can spare a few of their many billions to bring down bills, pay for energy efficient homes and switch from oil and gas to save the planet.

“Now more than ever, we need to give everyone in the UK the peace of mind that comes with having energy security from homegrown solar and wind so we’re not at the mercy of either profiteering oil and gas companies or hostile countries.”

ENDS

[1] The data was compiled from publicly available accounts and financial statements, using the best available measure of company profits. These measures differ from company to company due to reporting processes and regulatory requirements in different jurisdictions. In determining which measure of profitability to use, the research has prioritised the measure preferred in the company’s own accounts.

Full information available at: https://www.endfuelpoverty.org.uk/news/energy-firm-profits-tracker/ Data as at 21 March 2024.

The data was compiled by freelance business journalist David Craik. David’s experience has included writing business and city news and features for national newspapers and magazines such as The Daily Mirror, Sunday Times, Wall Street Journal, Scotsman and Daily Express. Much of his content focuses on company financial results and reports in the energy sector and on personal finance issues including wealth management, property, investing and managing household budgets and bills. If any firm wishes to correct the record, please email info@endfuelpoverty.org.uk.

English fuel poverty figures highlight failure to tackle energy bills crisis

The Government has published the latest English fuel poverty figures for 2024 [pdf].

It shows that in 2024, there were an estimated 11.0% of households (2.73 million) in fuel poverty in England under the Low Income Low Energy Efficiency (LILEE) metric.

This is a slight reduction from 11.4% (2.80 million households) in 2023, although among households where the oldest resident is aged over 75, there has been a slight increase in the numbers in fuel poverty (10.1% in 2024 up from 9.7%).

The average fuel poverty gap for England in 2024 (the reduction in energy costs needed for a household to not be in fuel poverty) was estimated at £407, down by 4% in real terms since 2023.

But the data also shows that the number of households who are required to spend more than 10 per cent of their income (after housing costs) on domestic energy. In 2024, 36.3 per cent of households (8.99 million) exceeded this threshold, up from 35.5 per cent in 2023 (8.73 million).

Jonathan Bean from Fuel Poverty Action, commented:

“The latest Government fuel poverty statistics expose the complete failure of Government and Ofgem to tackle the energy affordability and fuel poverty crisis.

“A shocking 36.3% of households in England are unable to afford the inflated energy prices we are forced to pay due to a rigged energy market and obscene profits. Many of us are forced to survive the winter huddled under blankets and go without hot water.

“The Government tries to hide the extent of fuel poverty by excluding the millions of us on low incomes struggling with high energy prices based on an often flawed EPC rating. But even using its own distorted figures, the Government has failed to address fuel poverty, and is expecting it to actually rise next year.”

The figures show significant revisions not only based on previous projections, but also fundamentally change previously published 2023 data. For example, the previous figure the ONS had produced for fuel poverty under the LILEE measure in 2023 was 3.17m households – a difference of over 300,000 households to the revised figure published today [pdf].

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented:

“The latest figures show the inadequacy of current fuel poverty monitoring.

“On the one hand it is welcome that official rates of fuel poverty are down – it means that investing in energy efficiency measures such as insulation and heat pumps works.

“But on the other hand, we see the measure which is most sensitive to the rising cost of living creeping up. This shows just how devastating the ongoing cost of living crisis is and what a mistake it was for the Chancellor to axe Winter Fuel Payments.

“It is now high time that the Chancellor finally commits in full to the £13.2bn Warm Homes Plan promised in the Labour Manifesto. This will ensure that millions of people can stay warm every winter.

“But given that energy bills continue to rise – and even the Office of Budget Responsibility has said that increases in gas prices are harming the economy – the Government must go further.

“The Chancellor must provide help to those struggling in fuel poverty now, not continue with cuts in vital support to older and disabled people.

“We need a government willing to invest in the solutions to the cost of living crisis – and the future of the country.”

Dr Matthew Scott, Senior Policy Officer at the Chartered Institute of Housing, said:

“Everyone should be able to live in a safe, warm home. However, the latest fuel poverty statistics published this morning show that progress essentially flatlined in the final years of the previous government.

“Through its Warm Homes Plan and updated fuel poverty strategy, the new government has an unmissable opportunity to reverse this trend. By building on its welcome investment into the Social Housing Fund and Local Grant programmes, the government can reduce energy bills and improve the health and wellbeing of millions of people before the end of the decade.

“CIH continues to call for the government to allocate the full £13.2 billion to its Warm Homes Plan in the forthcoming spending review, utilising the expertise and experience of social housing providers as key delivery partners.”

Jonathan Bean added:

“Government energy efficiency schemes are failing badly as they have only taken only 0.2% of households out of fuel poverty, even if changes to the Warm Home Discount Scheme are included. At this rate it will take until 2070 to hit the Government’s 2030 Fuel Poverty Target.

“One reason for the failure of retrofit schemes is that they have not focussed on the homes with the highest fuel poverty incidence, conversion flats (18.8%). Instead schemes are biased towards those in detached houses, who have the lowest fuel poverty incidence (7.3%). A totally new retrofit strategy is needed if the Government is serious about tackling fuel poverty.

“Electric only households have double the rate (20.7%) of fuel poverty than gas (10.0%) which highlights the urgency of bringing down inflated electricity prices that are currently quadruple the price of gas.”

Ministers should go further on Warm Home Discount reforms

The UK Government’s proposed expansion of the Warm Home Discount (WHD) is a welcome step, but campaigners have urged ministers to go further in ensuring vulnerable households receive the support they need this winter and beyond.

From 1 April 2025, energy bills will rise by 6.4%, keeping costs at levels 77% higher than in 2020. Millions of households – especially older people, renters, prepayment meter users, and those with health conditions – are struggling to afford these soaring costs.

In a consultation issued by Government, Ministers have proposed removing the high-cost-to-heat threshold from WHD rules which means that more means-tested benefit claimants will be able to qualify for the scheme.

However, in the End Fuel Poverty Coalition response to the consultation, experts stress that disabled people and those on non-means-tested disability benefits must also be included, as they often face significantly higher heating costs.

Furthermore, campaigners argue the WHD should be increased in line with inflation and funded from sources like the £4bn in excess profits made by energy network companies, rather than customer bills.

Expanding the Park Homes Warm Home Discount Scheme (PHWHDS) is also crucial, as many in atypical housing arrangements have been excluded from previous energy support. This includes people living in park homes who tend to be older and also those such as Gypsy, Traveller, and Boater communities.

However, there are concerns that broadening the scheme without increasing funding will mean many existing and newly eligible households could miss out.

A spokesperson for the End Fuel Poverty Coalition, commented:

“We strongly support the expansion of the Warm Home Discount as set out in the consultation. However, we believe that in expanding the scheme, the Government must also extend the support to more households who will otherwise suffer in cold damp homes next winter.

“Ministers’ proposals must also be properly resourced, rather than diverting money from energy advice initiatives that help those struggling with energy costs.

“Looking ahead, we need to see a more sustainable, long-term energy bill support scheme that targets all low-income households, including those with high energy needs who do not receive means-tested benefits.”

ENDS

Full consultation response available: https://www.endfuelpoverty.org.uk/news/reports-and-correspondence/

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