Energy Bills Archives - Page 2 of 13 - End Fuel Poverty Coalition

Rumours VAT could be scrapped on energy bills

The Times is reporting that the Chancellor is considering axing the 5% VAT on energy bills.

A spokesperson for the End Fuel Poverty Coalition, commented:

“We’ve long argued that energy for households should be a zero-VAT-rated essential good.

“This would be a hugely positive move by the Chancellor that could bring real relief to households facing a fifth winter of high energy bills. But it must also come alongside stronger, structural measures to reform electricity pricing, provide support for vulnerable households, ensure energy efficiency upgrades and investment in energy security.”

Fuel poverty statistics show 12m UK households struggling with energy costs

The number of UK households struggling with the cost of their energy bills has hit 12.1 million as campaigners warn Ofgem that people can not take any more price increases. [1]

With the latest price cap announcement due on Wednesday (August 27), experts say even the one percent increase predicted will lead to further suffering. The next rise will come into force in October and cover the period until the end of 2025 before prices will change again from January 2026.

Two fifths (43%) of UK households are struggling with energy bills and spending more than 10% of their household income on gas and electricity based on the research by the University of York. Of these, almost 5m households spend more than 20% of their income on energy, meaning they are in deep fuel poverty.

The figures also enable a comparison between the constituent parts of the UK. Northern Ireland and the West Midlands have the highest poverty rates, followed by Scotland and the North East. Meanwhile, the lowest rates are in Wales, the South West and Eastern England. [2]

The data also reveals types of households which will be hardest by any price rise. Households with children are the most likely to be struggling with their energy costs as are people who rent their homes. There is also a correlation between the lower the council tax band and the higher the fuel poverty rate.

3.2 million of those in fuel poverty are pensioner households, with 964,000 pensioner households in deep fuel poverty, meaning they spend more than 20% of their income on energy.

Meanwhile official figures also reveal that the level of energy debt is still increasing to an all time high, with millions of households owing a combined £4.15bn in debt. [3]

A spokesperson for the End Fuel Poverty Coalition said:

“Fuel poverty is very much still with us and these figures highlight how vital schemes like the Warm Home Discount are to help those struggling each year.

“But we are now approaching the fifth winter of the energy bills crisis and the time for tinkering with the price cap is over.

“The average household is still paying 67% more for their energy than in winter 2020/21. Ofgem is right to launch a comprehensive review of how energy system costs are allocated, but simply shifting budgets between standing charges and unit rates will not solve the problem.

“We also need to realise that the North Sea is now in terminal decline and unable to meet the UK’s long-term heating needs, despite what some politicians would have us believe.

“This means we must urgently plan to cut our dependence on gas and bring down the cost of electricity.

“Failure to act will lead to even greater reliance on gas imports, reduced energy security and increased energy bills.

“As well as looking at the price cap, we need to scrutinise the profits made by transmission and network companies, while Ministers must step in to ensure investment and funding decisions bring down the cost to bill payers of maintaining our vital infrastructure.”

Campaigners are now urging the Government and Ofgem to look at other ways to raise revenue for network improvements and point to the half a trillion pound profits made by energy companies since 2020 and the £4 billion in excess profits energy networks pocketed after a regulatory decision.

Uplift Executive Director Tessa Khan commented:

“This is unwelcome news for the millions of people who find themselves in fuel poverty, even before it begins to turn cold.

“The primary cause of the years of persistently high energy prices is the UK’s dependency on gas to generate electricity and heat our homes – which at its peak was three times higher than pre-crisis levels and remains almost double what it was.

“Oil and gas firms, who are lobbying against the shift to homegrown renewable energy, want it to stay this way so they can continue to make billions at our expense.

“Any politician who sides with these profiteering oil giants – and opposes the insulation of homes and building of more renewables – is working against the interests of UK pensioners, families and anyone else struggling with unaffordable energy bills.”

Jonathan Bradshaw, Emeritus Professor of Social Policy and Social Work at the University of York, said:

“Official statistics on fuel poverty don’t show the full picture of suffering caused by high energy bills.

“Our research uses benchmark official figures on living standards along with energy tariff data and statistical models to estimate the impact of energy costs on the population as a whole and on different groups of people.

“While the data shows a slight reduction in the numbers of households struggling compared to 2022/23, it is clear that fuel poverty is still with us.”

ENDS

[1] FUEL POVERTY IS STILL WITH US. Munalli, Gianluca; Bradshaw, Jonathan Richard; Richardson, Dominic .

13 p. 2025, Paper.

Research output: Other contribution

https://cpag.org.uk/news/fuel-poverty-still-us

The figures are inline with official data from 2024 for England which state that “the number of households who are required to spend more than 10 per cent of their income (after housing costs) on domestic energy… [for] 2024 [is], 36.3 per cent of households (8.99 million)… up from 35.5 per cent in 2023 (8.73 million)” and predicted a rise for 2025. The English figure for 2025 based on the York data is 9.94 million.

[2] Regional breakdown table sorted by the % of the area paying more than 20% of household income on energy in 2025.

Region	% of households of demographic spending more than 10% of income on energy 2022/23	% of households of demographic spending more than 10% of income on energy 2025	% of households of demographic spending more than 20% of income on energy 2022/23	% of households of demographic spending more than 20% of income on energy 2025
Northern Ireland	60.2	59.3	28.8	27.9
West Midlands	51.9	51.2	23.6	22.3
Scotland	47	44.3	18.9	18.1
North East	48.5	44.5	17.7	17.7
Yorkshire and the Humber	46.5	45.4	17.1	17.1
London	31.8	31.1	16.8	16.8
North West and Merseyside	47.3	45.5	16.7	16.7
East Midlands	43.5	40.9	15	14.3
South East	38.6	36.2	15.5	14.1
East of England	40.8	39.6	14.1	13.9
South West	39.6	38.4	13	12.2
Wales	42.7	42.2	12.1	12.1

[3] Latest figures based on Q1 2025: https://www.ofgem.gov.uk/data/debt-and-arrears-indicators

Smart meters must work for all consumers

Ofgem has announced that consumers will see greater levels of compensation in the event of smart meter failures.

A spokesperson for the End Fuel Poverty Coalition, commented:

“We must ensure that electricity pricing is fair and that everyone can access cheaper ‘time of use’ tariffs. Millions of people have been left behind in the smart meter roll out already and it is vital that the energy industry fixes problems with existing meters and compensates customers for failures.

“The main issues with smart meters are when they don’t communicate with the supplier and that is the fault of the Data Communications Company (DCC) and we are concerned that this fault will be exempt from compensation as it could be argued to be outside of the suppliers’ control.

“What’s more, when faults with smart meters are ongoing, it means that even people who want a smart meter may not be able to access from the best tariffs available. This is an issue not one which can’t be dealt with simply by a one off payment.

“And with the North Sea geologically unable to meet our gas heating needs for much longer and the UK set to rely on imports for 94% of its gas by 2050, we must be accelerating efforts to reform electricity pricing, not embedding unfairness. Access to smart tariffs must be universal, and smart meter failures must not become yet another reason why the most vulnerable pay more for energy.”

Smart meter rule changes needed as July price cap change comes in

Britain’s smart meter rollout must provide stronger protections for those left without functioning meters or denied access to cheaper energy tariffs.

In its submission to Ofgem’s consultation on Smart Meter Guaranteed Standards of Performance, the End Fuel Poverty Coalition said the regulator’s proposals “do not go far enough” and risk “letting down the very people most in need of support.”

The warning comes as the 1 July energy price cap change comes into effect and millions of households are expected to start shopping around for better energy deals. Many of the most competitive tariffs are now only available to customers with working smart meters.

Consumers without functioning smart meters, or who have been unable to get one installed, are often excluded from these deals, further widening the gap between those who can and cannot afford to heat their homes.

“This is fast becoming a two-tier energy system,” the report warns.

“Households without smart meters, often through no fault of their own, are now locked out of the most affordable tariffs. This creates a form of discrimination and risks trapping more people in fuel poverty.”

The Coalition’s submission lays out two key categories of compensation. First, it recommends quarterly automatic compensation for ongoing failures such as:

A smart meter not being connected by the Data Communications Company (DCC).
Areas with no DCC coverage despite consumer requests.
Installation failures in buildings with architectural challenges (e.g. stone walls, first-floor flats).
Smart meters that fail to communicate with suppliers or the DCC.
Smart meters that don’t work properly after installation.

Secondly, it calls for one-off automatic payments for each occasion where:

Meter readings are recorded incorrectly during installation.
Installation appointments aren’t provided within a set timeframe.
Engineers miss scheduled appointments.
Installations fail due to supplier-related issues.

The Coalition says that suppliers should be required to pay compensation even when third-party organisations are at fault, and then reclaim the cost from those responsible in a significant departure from the current system.

It warns that current proposals rely on the phrase “within a supplier’s control” before compensation can be paid out which risks creating loopholes that allow firms to dodge accountability.

Separately, the Coalition has raised concerns with regulators about the impact of increasing reliance on time of use tariffs on vulnerable groups who have less ability to shift demand to alternative times of the day.

A spokesperson for the End Fuel Poverty Coalition commented:

“Smart meters can be a force for good, helping households manage their usage, access better tariffs, and reduce costs. But we need to remember those households who are unable to access these tariffs.

“It’s time for energy companies to take full responsibility for the broken smart meter rollout. Consumers have already paid billions for this programme through their bills, yet they are the ones being left without working meters, without access to the best tariffs, and without proper compensation.

“All of these issues are happening at the same time as we see ongoing structural problems in the UK’s energy pricing system continue to drive up the cost of electricity, which remains closely linked to volatile global gas markets under the marginal pricing model.

“The geological reality is that the North Sea basin is dying and there are limited levels of gas for home heating left, the UK is simply running out of gas. No amount of new drilling will stop Britain’s deepening dependency on foreign gas.

“The sooner households are supported to move to alternative heating and cooking systems the better.”

ENDS

The full response to the Ofgem consultation is available to read as a pdf.

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

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.”

Role of gas in the spotlight as energy prices set to rise

Forecasts reveal the energy bill price cap is set to rise yet again in April when Ofgem makes the next price cap announcement on 25th February.

Meanwhile analysis of the energy market prices show that the increasing average household cost of energy directly mirrors a trend-line of gas prices since July 2024. [1]

At the heart of the challenge is the system that sees electricity prices being set by the cost of gas up to 40% of the time under the marginal pricing rules.

With the cost of gas rising to a two year high in recent weeks, the over reliance on fossil fuels in the country’s energy system is continuing to cause distress in households.

A spokesperson for the End Fuel Poverty Coalition, said:

“As volatile energy bills continue to be set by our reliance on global wholesale markets and driven by the cost of gas, it is even more vital that we see moves toward sustainable, cheaper, renewable energy.

“This of course needs to be combined with support for vulnerable households with their energy bills and investment in helping people make their homes more energy efficient – especially those living in low quality private rented homes.

“But until homes can be upgraded, consumers need to navigate a confusing array of energy tariffs. When comparing tariffs, customers must use their own energy usage and must not rely on industry averages as this may hide the true cost a household will pay.

“Customers also need to look out for exit fees which may trap you into uncompetitive tariffs in the future. And, if a household is interested in moving to a ‘tracker’ style tariff, it is even more important to make sure you look at your own usage, the unit costs and the standing charges and check that they will offer you real value for money.”

The current gas price surge is driven by the conflict in Ukraine, a colder than expected European winter and volatile wholesale markets operated by city market traders.

Campaigners have claimed that the latest energy price forecasts show customers are being gaslighted by an industry that has made £483 billion in profits since 2020.

Warm This Winter spokesperson Caroline Simpson said:

“It’s soul destroying that there will be another price cap rise. What billpayers don’t know is that even their electricity bills are chained to gas prices. This over reliance on gas – both for our heating and in setting the electricity price – is why we saw huge hikes in bills four years ago and now we are seeing prices set to rise again.

“Instead, the public are being told by some politicians that net zero and green policies are to blame which couldn’t be further from the truth and we need to stop gaslighting people.

“Our bills are high and the ones who benefit are greedy gas and oil companies who are making billions. That is why we desperately need to develop our own renewable energy sources as the only way to achieve lower prices and energy security for good.”

ENDS

[1] Raw data for chart as below.

Date	Gas price (USD/MMBtu)	Average annual energy bill (GBP)
Jul-24	2.04	1568.00
Aug-24	2.24	1568.00
Sep-24	2.32	1568.00
Oct-24	2.35	1717.00
Nov-24	2.82	1717.00
Dec-24	3.31	1717.00
Jan-25	3.95	1738.00
Feb-25	3.62	1738.00
Mar-25	Trend line	1738.00
Apr-25	Trend line	1846.00* or 1823.00**

Source for Natural Gas Prices: Bloomberg taken on closest working day to 17th of each month. Source for Energy Bill prices: Ofgem / *Guardian 18/2/25 **BBC 18/2/25

Snow and cold health warnings demonstrate need for energy bill support

As health experts warn old and disabled peoples’ lives are at risk with Britain set to freeze until Wednesday (January 8), campaigners are calling for the government to fast track a social tariff backed by three-quarters of voters.

Warm This Winter found a huge majority of the public think the Government should provide more support to vulnerable households with their energy bills [1] which they also believe should be funded by the wider energy sector that has made over £483 billion in profits according to the latest stats released by campaigners.

Three quarters of the public (75%) back the Government bringing in a social tariff to provide a discount on energy bills to those in greatest need of help.

A social tariff offers lasting protection to those who depend on heating and electricity the most for their health and well-being, reducing the costs of every unit of energy they use and shielding them from volatile and persistently high energy prices.

But after many pensioners have now seen their winter fuel payments removed, 78% of the public called for a social tariff to be made available to older people.

And 86% felt that those who are dependent on powered medical equipment in order to stay healthy at home (e.g. dialysis machines, oxygen concentrators, artificial ventilators) or rely on energy to power equipment (e.g. charge wheelchairs, run fridges for medicines) should get the tariff.

Similar high levels of support were found for the social tariff going to those who have respiratory diseases (81%), have cardiovascular disease (77%), disabilities (76%), are financially vulnerable (72%) or are at risk from not using energy due to money worries (69%).

As in previous polling, the public backed the social tariff being paid for by the energy industry (producers, networks and suppliers). There was also support for the cost being split between industry and general taxation.

There was almost no support for it being fully funded by spreading the costs across everyone else’s energy bills, which is usually what happens with support schemes at present.

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

“As households continue to suffer as a result of our dependence on volatile gas prices, the to-do list for the Government in 2025 gets even longer.

“As a priority, Ministers must set out plans to tackle affordability and discrimination in the energy market. This is an imperative to reduce and prevent the public health complications that arise from so many millions of people living in cold damp homes.

“We must see affordable energy bills for those most in need of support through a social tariff alongside other measures to bring down prices, address issues with smart meters and ensure all households can access the best tariffs and support.

“At the same time, Ministers must not let up in delivering longer-term market reforms that prioritise consumers, while also providing the £13.2bn in funding needed for the Warm Homes Plan and continuing to drive forward renewable energy projects which improve our energy security.”

Warm This Winter campaign manager, Caroline Simpson, commented:

“The public believe that a social tariff must be implemented and this needs to be done as soon as possible to avoid more scenes of vulnerable people living in cold damp homes every winter. Hard-pressed bill payers also want to see this programme paid for by energy industry profits.

“Most also agree the only way to bring down everyone’s bills in the long term is to help households reduce their energy use, by insulating and ventilating the UK’s housing, which is some of the leakiest in Europe. But in the meantime we must ensure we protect the most vulnerable people in our society from the continuing high cost of energy driven by volatile gas prices.”

ENDS

[1] Opinium conducted an online survey of 2,014 nationally and politically representative UK adults between 7th and 8th October 2024.

Energy firm profits top £483 billion since start of crisis

Just 20 energy companies have made £483 billion in profits since the start of the energy bills crisis. [1]

While the full range of figures for 2024 have yet to be declared, profits this year amount to £9bn with another £77bn of interims also posted.

Recent Ofgem price cap changes have seen energy bills creep upwards with a further 1.2% increase due to come into force from 1 January 2025.

A spokesperson for the End Fuel Poverty Coalition, commented:

“While consumers have suffered in cold damp homes this winter, energy firms’ boardrooms have been celebrating further bumper profits.

“To add insult to injury, around a quarter of what is spent on heating our draughty properties is wasted, because the fact is that the UK has some of the worst insulated homes in Europe. Fuel poor households are literally seeing money fly out of their windows and into the pockets of the energy industry.

“We are repeatedly told that there is not enough money to provide support for older people with their energy or to roll out comprehensive programmes of insulation, these figures show this is simply not true. There is plenty of money in the energy industry, it’s just not in the hands of hard-pressed customers.”

The staggering sums are revealed in the End Fuel Poverty Coalition’s updated profit tracker which examines profits made by a sample of companies that include energy producers (such as Equinor and Shell) through to the firms that control our energy grid (such as National Grid, UK Power Networks and National Gas Transmission) as well as suppliers (such as British Gas). It does not include supply chains or market trading firms.

As recently as October, changes in the price cap meant that suppliers will be able to make an additional 11% in profits on every standard variable tariff. Analysis of these figures suggest that supplier profits allowed through the Price Cap could amount to c.£1.2 billion over the next 12 months, enough to cover the cost of Winter Fuel Payments for almost all pensioners. [2]

Warm This Winter spokesperson Caroline Simpson said: “We reckon it’s about time the energy industry stopped lining their own pockets and supported the estimated 8.8 million people that have spent Christmas in cold damp homes.”

A March 2024 Warm This Winter Tariff Watch report also called for improvements in transparency of the ownership of energy network and transmission firms after it found that British households had been boosting the profits of Chinese and Qatari Government-backed funds.

ENDS

[1] Researchers examined the declared profits of the 20 energy firms the End Fuel Poverty Coalition is most asked to comment on. This sample of the industry ranges from energy producers (such as Equinor and Shell) through to the firms that control our energy grid (such as National Grid, UK Power Networks and Cadent) as well as suppliers (such as British Gas). It does not include supply chains nor market trading firms. Previous updates have been published on:

The updated tracker is available at: https://www.endfuelpoverty.org.uk/news/energy-firm-profits-tracker/

[2] Ofgem Price Cap decision, p4 https://www.ofgem.gov.uk/sites/default/files/2024-08/Summary_of_Changes_to_Energy_Price_Cap_1_October_to_31_December_2024.pdf. EBIT allowance from 1 October 2024 is £44 per standard variable tariff customer per year. Ofgem state that 27m customers are on a standard variable tariff. £44 * 27m = £1.19bn.