Tag: Energy Bills

Government urged to prepare emergency energy bill support

The End Fuel Poverty Coalition has written to ministers urging the Government to prepare an emergency energy support framework to protect households from rising energy bills as global fossil fuel prices remain volatile.

In a new policy proposal sent to the UK Government, the Coalition warns that the current gas and oil price crisis could see millions of households in fuel poverty if bills increase again from July.

While the Ofgem energy price cap is set to fall slightly from April 2026, rising wholesale gas prices mean bills could rise sharply again this summer. Early projections suggest the average annual bill could increase and, as a result, the Coalition estimates that around 13 million households will be left spending more than 10% of their income on energy, with c.5 million spending more than 20%.

Some households are already feeling the impact of rising costs. Off-gas households relying on heating oil have reported refill prices doubling in recent weeks, LPG customers are facing rising prices, while heat network customers could soon face steep increases as energy supply contracts expire.

The Coalition’s proposals focus on targeted support for households most exposed to high energy costs, while retaining the ability to expand support more widely if the crisis deepens.

The immediate measures recommended include 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.

The Coalition says the proposals are designed to complement longer-term policies such as the Government’s Warm Homes Plan and Clean Power Plan, which aim to reduce energy bills permanently by improving energy efficiency and reducing reliance on fossil fuels.

However, campaigners warn that households still need protection from price shocks in the meantime.

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

“Millions of households are still recovering from the last energy crisis, with record levels of energy debt and many already struggling to afford their bills.

“The risk is that we see another wave of fuel poverty driven by the oil and gas price crisis caused by Trump’s war in the Middle East.

“This is history repeating itself and rather than making snap decisions, the Government should establish an emergency support framework now, so households know what support can be expected.

“Reducing energy price spikes benefits the whole country. It helps limit inflation, reduces pressure on household finances, prevents worsening fuel poverty and cuts the health impacts associated with cold homes.

“This support should be funded fairly. Energy companies and other parts of the energy industry make huge profits during periods of price volatility, so it is only right that windfall taxes and excess profits are used to help protect households from another energy price shock.”

Maria Booker, Head of Policy, Fair By Design, commented:

“The Government must use the next two and a half months to design an emergency support package that is both effective and fair. Support should be carefully targeted towards those who need it most and funded in an equitable way.

“This shock is yet  another reminder of why the Government must accelerate progress on data‑matching capabilities so that support can be better targeted.

“Ultimately, reducing our reliance on fossil fuels and transitioning to clean power generated here in the UK, will mean we are not at the mercy of global energy shocks like this in future.”

Uplift Deputy Director Robert Palmer said:

“Everyone in the UK is going to pay the price if this reckless conflict continues via a ‘Trump War Tax’ that could add thousands of pounds to people’s bills.

“We risk seeing higher energy bills, more expensive petrol, pricier mortgages and bigger food bills. It’s good to see some immediate support from the government on heating oil and it’s crucial that the government provides further support if it’s needed on bills.

“The UK must also plan for the long term. What we need is to ramp up the shift to renewable power so we have cheaper energy, secure supply and a cleaner environment. Oil and gas profiteers, who stand to make billions out of the Iran crisis,  should pay their share of any financial help.”

Morgan Vine, Director of Policy and Influencing at Independent Age said:

“It is clear that support is needed for older people in financial hardship who are understandably anxious about what the fuel crisis could mean for them. With over half of older people on a low income already finding it a struggle to keep up with their energy bills, many are already making tough choices, not turning the lights on at night, heating only one room even in the depths of winter, or washing in cold water.

“Older people on low incomes can’t afford to absorb any more costs; they’re already at breaking point. The UK Government must take comprehensive action now to protect everyone on a low income from sky-high energy prices.”

Jonathan Bean, spokesperson for Fuel Poverty Action, said:

“Any emergency support must recognise that electric-only homes face much higher unit prices than oil and gas households due to our rigged energy market.

“The Government must urgently break the link between gas and electricity which allows firms to inflate the price of cheap renewable energy.

“The Prime Minister must also get a grip on the huge profits that already make up £500 of the average energy bill. If the Government was serious about bringing down our bills, they would work with Ofgem to cut profits and pass the savings back to us.”

Susie Elks, Senior Policy Advisor on the UK Power System at E3G commented:

“In spite of this crisis, the government must continue to resolve the challenges which are increasing some of the underlying drivers for bills. They must lower the cost of ‘hidden taxes’ on bills, which add £11bn to households and business energy bills.

“They must solve the energy debt crisis, which is adding £50-£70 to every household’s bill.

“They must find a way for us to modernise our energy networks, which have been chronically underinvested in, whilst managing the costs to households.”

Ian Preston, Director of Development and External Affairs from the Centre for Sustainable Energy commented:

“Another fossil fuel price crisis, when many households still haven’t recovered from the last one, underlines the urgent need to support households to switch to heat pumps powered by homegrown renewable energy generation as quickly as possible. But, in the meantime though, bill payers, especially those reliant on oil or LPG, need bill support to stay warm this coming winter.”

The End Fuel Poverty Coalition brings together more than 100 charities, health organisations, housing groups, trade unions and consumer bodies working to end fuel poverty across the UK.

The full proposal has been shared with ministers and officials and the Coalition has offered to meet with the Government to discuss how the measures could be implemented.

ENDS

The full proposals can be read here.

Fuel poverty calculations are extrapolations using analyst forecasts of average energy bills and based on the data compiled in 2025 https://www.endfuelpoverty.org.uk/fuel-poverty-statistics-show-12-million-households-struggling/

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.”

Heating oil prices surge as conflict pushes up costs for off-gas homes

The cost of heating oil continues to surge due to the Middle East conflict, now hitting levels not seen since the early days of the Ukraine invasion. Reports from some customers suggest that 1,000 litres now costs almost £985, compared to £670 in January.

During the height of the last price spike, the government recognised that off-gas-grid homes were exposed to fuel price spikes and weren’t covered by the Energy Price Guarantee, so it introduced the separate Alternative Fuel Payment – a £200 one-off payment for households using fuels such as heating oil, LPG or biomass.

A spokesperson for the End Fuel Poverty Coalition, said

“Households that rely on heating oil are often some of the most exposed to global fossil fuel price shocks because they sit outside the energy price cap.

“These homes are also those that are among the deepest fuel poverty as the cost of home improvements which could help reduce the cost of energy can be prohibitive.

“This means that when overseas conflicts send oil prices soaring, the cost of heating for families in rural and off-grid homes can jump almost overnight.

“While other households are protected by the energy price cap for now, homes heated by oil are starting to suffer now and may need urgent support.

“This is another harsh reminder that relying on volatile fossil fuel markets leaves households vulnerable. The long-term answer has to be looking at alternative heating systems and creating warmer homes by supporting people who need to improve energy efficiency.”

Meanwhile early signs suggest energy suppliers are once again increasing exit fees on fixed tariffs.

These charges, which households must pay if they leave a fixed deal early, surged during the last energy crisis as suppliers tried to protect themselves from volatile wholesale markets. In some cases exit fees climbed to more than £100 per fuel, making it expensive for households to move supplier even when cheaper deals became available.

Campaigners warn the same pattern could now be repeating. If exit fees rise again, households who fix their tariff to gain certainty could find themselves stuck in poor value deals or tied to suppliers providing weak customer service, simply because the cost of leaving becomes too high.

A spokesperson for the End Fuel Poverty Coalition told the Telegraph:

“Every time the global gas market starts to spike, exit fees creep up. What should be a simple choice about fixing your bill risks becoming a trap that locks households into expensive deals or with poor customer service. Ofgem should act quickly to implement an exit fee ceiling to help protect consumers.”

Energy bills set to rise again in summer as global gas tensions bite

As conflict in the Middle East continues and Qatari production of LNG gas unlikely to restart soon, analysts at Cornwall Insight expects that energy bills will increase from 1 July by 10% to around £1,800 for the average household.

Members of the End Fuel Poverty Coalition predict that this will be at the lower end of predictions, if the conflict is not resolved in the coming days. After falling back from early morning extreme highs during trading yesterday, gas prices are sitting 26% up year-on-year (as at 0930 5 March).

A spokesperson for the End Fuel Poverty Coalition commented:

“The latest projections are devastating for households who had been expecting some relief on energy bills.

“Summer normally brings some respite for households because wholesale prices tend to ease as heating demand falls. So the prospect of bills rising by around 10% in July is a worrying sign that global tensions are once again feeding directly into energy costs.

“If these forecasts prove correct, the increase would wipe out the savings delivered by the Budget and pile even more pressure onto families already struggling. Energy debt is already at record levels, and millions of people remain in cold, damp homes after years of high bills.

“The deeper problem is that the UK is still dangerously exposed to volatile fossil fuel markets. As long as our energy system remains tied to global gas prices, shocks like this will continue to hit household finances.

“At the same time the energy industry stands to benefit from the crisis. It’s obscene that as bumper profits are predicted from the fresh energy crisis, some are calling for an early end to the Windfall Tax.

“Ministers must ensure the system works for consumers, not just for the fossil fuel giants, and deliver more homegrown renewables, better insulated homes and fairer energy pricing.”

Politicians debate Spring Statement as energy risks still loom

Chancellor Rachel Reeves used her Spring Statement to defend the Government’s economic plan after the Office for Budget Responsibility downgraded near-term growth forecasts.

But against a backdrop of rising tensions in the Middle East and renewed volatility in global energy markets, the statement did nothing to reassure households.

A spokesperson for the End Fuel Poverty Coalition, said

“Away from the hot air generated by politicians in Westminster today, households will be watching the news to see how the latest conflict hits their energy bills.

“Time and again we see how global tensions push up fossil fuel prices, driving costs higher and squeezing living standards. Yet while families face that uncertainty, energy giants have generated more than £125bn in UK profits since 2020.

“The Chancellor is right in her Spring Statement that the world has become more uncertain, with one of the biggest risks to family finances being the over-exposure to volatile oil and gas markets.

“If the Government is serious about tackling the cost of living and strengthening economic resilience, it must accelerate investment in homegrown renewables, roll out a nationwide insulation programme and reform energy pricing so bills are no longer tied to fossil fuel volatility.

“In an unstable world where the UK’s own gas fields will not be able to meet demand in the years to come, energy security and affordable energy are two sides of the same coin.”

Iran conflict pushes gas prices higher, but the risk for bills lies ahead

Gas wholesale prices have now hit levels not seen since 2023 (as at 09:00 3 March 2026 they were at levels last seen on 30 January 2023, up 36% year-on-year) and the cost of heating oil is also surging (up 39% year on year).

A spokesperson for the End Fuel Poverty Coalition, said:

“Global price shocks translate into higher energy costs because the UK remains so heavily dependent on gas and the mature North Sea basin will be unable to meet domestic demand within the next few years. Our energy system also links the cost of gas to electricity prices because the grid still relies on gas-fired power stations, although this influence eased last year.

“The conflict has already started to push wholesale gas prices to levels we’ve not seen since 2023, but for now most households are shielded by the Ofgem price cap.

“Bills are effectively protected until at least 1 July 2026 because the April to June cap has already been set. The cap works by smoothing out price spikes and delaying the passing on of cost increases to consumers. But that also means the real risk is what happens next.

“If wholesale prices fall back, the impact may be limited. But if elevated prices persist, they will affect Ofgem’s next price cap decision in May, which takes effect from July.

“It is also unclear how suppliers will respond in the fixed tariff market. In periods of uncertainty they often withdraw or increase the price of deals to avoid exposure to volatile wholesale costs.

“Households that rely on heating oil are even more exposed, and the latest surge in those prices will be a major concern for rural and off-grid families needing to refill in the coming weeks.

“This is a stark reminder that the UK is still dangerously exposed to volatile international markets. The only lasting protection for households is to cut gas demand through a nationwide insulation programme, expand homegrown renewables and reform energy pricing so bills are no longer tied so closely to global fossil fuel prices.”

Gas and heating oil prices spike as energy risks mount

The UK Natural Gas price has just hit a 12 month high and is still rising fast (as of 1300 GMT it is 13% up on 2025) as Qatar suspends LNG gas production and exports.

This will impact the energy price cap which takes effect on 1 July 2026. Heating oil is also at a 12 month high – 30% up year on year, which will be a concern to rural communities.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Fresh highs in wholesale gas prices underline that UK households remain dangerously exposed to volatile global markets and that the UK’s own gas is running out. Within a few years we will no longer be able to meet heating demand from the North Sea, leaving families even more exposed to price shocks from abroad.

“As long as our energy bills remain dependent on gas, households will keep being hit by global price shocks. The most durable way to protect people is to cut demand through a nationwide insulation programme, invest in homegrown renewables and reform energy pricing so bills are no longer tied to volatile fossil fuel markets.

“At the same time, energy share prices are surging again. With industry lobbying the Treasury to end the Windfall Tax early, there is a real danger the crisis once again becomes a cash machine for the energy giants.

“Ministers must reject industry pressure and remember that a handful of energy firms have generated more than £125bn in UK profits since 2020.”