Fuel Poverty Archives - End Fuel Poverty Coalition

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

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/

Image credit: Ascannio / Shutterstock.com

MSPs must act to help end cold homes crisis

Members of the Scottish Parliament have been urged to put political differences aside to unite in support measures that will help end fuel poverty.

In a letter sent to all MSPs, politicians have been asked to ensure the next First Minister does not abandon government policies which could help end the cold damp homes crisis.

For over 400,000 Scots, their homes are almost uninhabitable due to the cold and damp.

The letter, signed by leading civil society organisations and coordinated by the End Fuel Poverty Coalition and Energy Action Scotland, warns that among the most vulnerable, the crisis is even worse.

New figures from research among Social Workers Union members has found that 69% of Scottish social workers have seen the people they support living in cold damp homes.

The letter states that the health complications of this are potentially serious: “Everyone remembers the tragic case of Awaab Ishak, but people young and old, with disabilities or with a range of health conditions are at risk.”

The campaigners have demanded that MSPs from across all parties to unite in support of:

A Heat in Buildings Bill which is ambitious in its vision for improving the energy efficiency and insulation of the nation’s homes and contains a clear fuel poverty duty enshrined in the legislation.
The current Housing Bill that will enhance tenants’ rights and provide financial protections for tenants during the ongoing cost of living crisis.
Additional Government support in future budgets and legislation to help households cope with the cost of living crisis.
Reintroducing the Fuel Insecurity Fund to help at least those most at risk of harm and struggling in energy debt.
The new Pension Age Winter Heating Payment being fundamentally better targeted than the Winter Fuel Payment that it replaces.
A strengthened framework of support for the renewables and offshore wind sectors and the fastest possible “just transition” for the oil and gas sector, as described in the Draft Energy Strategy and Just Transition Plan.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Any further delays to boosting energy efficiency plans, protecting tenants rights and organising financial support for the most vulnerable will hit households hard.

“We need MSPs to come together and unite on a programme that will tackle the long term causes of Scotland’s cold homes crisis and provide emergency support to those most at risk next winter.”

Other groups signing the letter range from the Poverty Alliance and the Disability Poverty Campaign Group to Fathers Network Scotland, the National Pensioners Convention and Parents for Future Scotland.

Local groups such as Aberdeen Heat & Power, East Kilbride Housing Association, Musselburgh Food Pantry, Stirling District Citizens Advice and Tighean Innse Gall have also backed the letter.

One signatory, Gaynor Allen from Sustaining Musselburgh, which is organising an event to help East Lothian residents find out how to make their homes warmer and less expensive to heat on 1st June, said:

“Everyday we hear more shocking stories of the hardships people are facing due to high energy bills and poorly insulated homes. We need both the UK and Scottish Governments to prioritise the short term and long term solutions to fix people’s cold homes.”

Warm This Winter spokesperson Fiona Waters, added:

“What voters really care about is the cost of living crisis driven by high energy bills that is still putting unbearable pressure on millions of households around the country.

“We need governments in each nation who will prioritise fixing our broken energy system by getting us off expensive oil and gas and onto cheap, homegrown renewables and by properly insulating our leaky housing stock to bring down bills for good.

“Politicians should not lose sight of that or they will pay at the ballot box.”

To read the full letter, click here.

Fuel poverty statistics reveal households hit hard by energy bills crisis

New data published by the Department for Energy Security and Net Zero has revealed that a surge in the numbers of households spending more than 10% of their income on energy in England.

The number of households who are required to spend more than 10% of their income after housing costs on domestic energy has risen to 36.4% of households (8.9 million households) up from 27.4% in 2022 (6.7 million).

Meanwhile, the average fuel poverty gap (which measures the additional money a household would need to be lifted out of fuel poverty) has increased by 66% between 2020 and 2023 in real terms, due to rising energy prices.

E3G UK energy lead, Juliet Phillips, explained that for those already in fuel poverty, things have got significantly harder:

“It is shameful that in a country as wealthy as England, so many households cannot afford to heat their homes to a healthy and comfortable level. New statistics show that no progress has been made in reducing fuel poverty rates in the past year, and that for those struggling to pay their energy bills, things have gotten a lot worst.

“We have seen a concerning inertia from the government over the last year on action to upgrade homes. This included a U-turn on the planned increase in energy efficiency standards in the private rented sector, and a significant under-delivery of the retrofit schemes designed to alleviate fuel poverty.

“If the UK is to have any chance of meeting its statutory target to end fuel poverty by 2030, a long-term plan is needed to rebuild confidence in supply chains: backed by investment and regulations to drive action to deliver warmer homes across the country.”

The statistics also show that households in the private rented sector are at the highest risk of fuel poverty. This follows Rishi Sunak’s U-turn on the planned uplift to minimum efficiency standards in the sector last year.

Jonathan Bean, spokesperson for Fuel Poverty Action, commented:

“Fuel poverty rates are highest in private rentals so the Government’s lack of commitment to improved standards will continue to harm millions.

“In addition, electric-only homes have the highest fuel poverty rates due to the four times higher price of electricity compared to gas, due to our rigged energy market which the Government and Ofgem have failed to reform.

“It is time to admit Government and Ofgem policies have completely failed, and a more radical solution to fuel poverty is needed – Energy For All. This would eradicate fuel poverty now, rather than allowing millions to suffer in cold damp homes for another decade.”

The statistics show that there were an estimated 13.0 per cent of households (3.17 million) in fuel poverty in England under Ministers’ preferred measure of fuel poverty, known as the Low Income Low Energy Efficiency (LILEE) metric in 2023. This number is effectively unchanged from 13.1 per cent in 2022 (3.18 million).

A spokesperson for the End Fuel Poverty Coalition explained the limitations of this metric:

“Even these terrible figures don’t paint the true picture of the suffering in households across the UK.

“They exclude millions of homes in certain energy performance categories, fail to take into account soaring energy costs and also don’t include many people who actually get a Warm Home Discount to help with their bills.

“The reality is that household energy debt is at record levels, millions of people are living in cold damp homes and children are suffering in mouldy conditions.

“The wider impact of high energy bills is also clear to see with households having to cut back on spending so much that the UK has now entered a recession.”

Nearly 1 in five households in the West Midlands are classed as fuel poor. Meanwhile, in the South West, it would take an extra £634 to lift homes out of fuel poverty.

The latest National Energy Action (NEA) Fuel Poverty Monitor, developed with Energy Action Scotland and Gemserv, highlighted over 3 million UK households could be left in fuel poverty by the end of the decade, despite a legal requirement for no households in England to be living in fuel poverty by 2030.

Adam Scorer, Chief Executive of National Energy Action, added:

“At this rate, the government will miss its 2030 legal fuel poverty target by a country mile and millions will be stuck unable to afford to keep their homes and their families warm and well.”

New polling by YouGov for NEA shows that three in 10 (30%) GB adults say their household has found it difficult to afford to pay their energy bills in the past three months.

This has driven many to drastic ‘not coping strategies’ with 59% of British adults saying they had turned their thermostat down lower than they wanted, while 52% turned their heating off, even though it was cold inside the house.

4,950 excess winter deaths caused by cold homes last winter

Following publication of new official data, the End Fuel Poverty Coalition has estimated that 4,950 excess winter deaths in the UK were caused by living in cold homes during winter 2022/23. [1]

Historic records also indicate that when the mean winter temperature in the UK drops below four degrees centigrade, the level of excess winter deaths sky-rockets. The average temperature last winter was 4.3 degrees. [2]

While December 2023 was exceptionally warm, average daily temperatures for the UK in January are forecast to dip as low as -1.6 degrees and fell to -14 in some parts of the UK last night. [3]

The Government continues to rely on Warm Homes Discounts, Cold Weather Payments and Winter Fuel Payments as the measures of support to households, however these are limited in eligibility and impact.

This winter the Government refused demands to support households through an Emergency Energy Tariff and a help to repay scheme for those in energy debt.

But the Government’s approach is an increasingly dangerous strategy with the effects of climate change taking hold.

The Met Office official guidance is that El Niño winters are more likely to be colder in the UK and scientists predict that these El Niño winters could become more common as global temperatures increase. With 2023 being declared as the hottest year on record, campaigners have urged politicians to grasp the seriousness of the situation.

A spokesperson for End Fuel Poverty Coalition, commented

“Figures from the Warm This Winter campaign show that 8.3m adults are living in cold damp homes this winter and, as temperatures drop, these conditions go from being uncomfortable to downright dangerous.

“But while households struggle, Ministers are sitting on their hands and leaving matters of life and death to chance.

“Instead of taking action on energy bills, they have allowed energy firms to restart using the courts to force households onto prepayment meters and have now ruled out reform to energy tariffs to help those most in need.

“They would rather play politics with a ridiculous Oil & Gas Licensing Bill that will do nothing to improve energy security or lower bills than take meaningful action to help households struggling right now.”

Jan Shortt, General Secretary of the National Pensioners’ Convention, which is part of the Warm This Winter campaign, said:

“We are very concerned at the level of disinterest shown by the government in the welfare of older people at a time when the temperature is dropping well below freezing.

“It fell as low as -14 degrees this week and even in towns and cities it does not get much warmer until later in the day. This presents a real dilemma for older people struggling with the cost of energy and other inflated bills – we know many are already afraid to turn the heating on at all.

“Add to this the decision by Ofgem and the government to allow the force-fitting of energy prepayment meters to resume, while energy providers continue to enjoy inflated profits, smacks of abandonment of those struggling to pay their bills without any relief on the horizon.”

Greenpeace UK’s climate campaigner, Georgia Whitaker, said:

“This is a national scandal. The UK has the least insulated homes in Western Europe. We’ve known this for years. Yet every year thousands of people are dying as a result. And our government is doing practically nothing to fix the problem.

“Insulating homes at speed and scale right across the UK would drastically reduce these unavoidable deaths, as well as helping to tackle the cost of living and climate crises by lowering bills and slashing household emissions. But until that happens, this shameful government negligence will continue to cost people their lives, and without climate leadership the government will be punished at the ballot box.”

UPDATE: In February 2024, the ONS launched a consultation on the methodology associated with this calculation and also set out new figures for excess deaths in a particular period (rather than excess winter mortality levels as set out in the figures above). Even after these new measures are introduced, the old data which is set out above is not technically incorrect, however the metrics used for calculating the figure may be less accurate than the new measures.

ENDS

[1] 2022/23 Data: ONS (for England & Wales) table 10, updated on 17 January 2024 combined with NRS and NISRA data then applying IHE methodology to estimate the number of Excess Winter Deaths caused by living in cold homes. Previous End Fuel Poverty Coalition estimates put the figure at 4,706 Excess Winter Deaths caused by cold homes.

[2] Excess winter deaths caused by cold damp homes and average winter temperatures (End Fuel Poverty Coalition records)

Winter	Number of excess winter deaths caused by cold homes	Mean winter temp (C)
2010/2011	6,232	2.4
2011/2012	5,608	4.5
2012/2013	7,321	3.3
2013/2014	4,206	5.2
2014/2015	10,475	3.9
2015/2016	6,035	5.5
2016/2017	8,211	5
2017/2018	11,997	3.6
2018/2019	5,665	5.2
2019/2020	2,439	5.3
2020/2021	14,502	3.5
2021/2022	3,229	5.2
2022/2023	4,950	4.3

[3] December 2023 stats – 5.8 degrees mean: https://www.metoffice.gov.uk/research/climate/maps-and-data/summaries/index

January 2024 stats:

https://www.netweather.tv/charts-and-data/average-uk-temperature (accessed 16 January 2024 at 1400)

Chilling figures show children at risk from mould

One in ten new or soon to be parents frequently experience mould in their homes as Britain’s energy crisis bites hard.

The new data was revealed by the Independent and is based on research for the Warm This Winter campaign and suggests that around 850,000 (9.6%) of people who have a child under 6 or who are pregnant (or their partner is pregnant) are exposed to mould frequently. [1]

The numbers increase further to 3.4m (38%) people who have frequent or occasional exposure to mould and who have a child under 6 or who are pregnant.

The tragic case of Awaab Ishak highlighted the need to take the issue of mould in UK homes seriously and the NHS advises all young children to be kept away from damp and mould.

Not only does damp and mould produce mould spores and other toxins that are harmful to health, but even excessive moisture can lead to the growth of mould and other fungi, certain species of house dust mites, bacteria or viruses.

Rachel Kirby-Rider, Chief Executive at Young Lives vs Cancer, explains:

“No child should be living in damp or mouldy housing, but for some of the children and young people with cancer we support, this is the reality. For them, the risk of infection is high, and living in a house that is damp or has mould increases this infection risk and other health impacts, leading to hospital admissions or worse.

“It is vital that the government takes action to make sure that children and young people with cancer have warm homes, free of mould, that are a safe haven for them during their treatment.” [2]

The Government warns that the “more serious the damp and mould problem and the longer it is left untreated, the worse the health impacts and risks are likely to be.” The solutions to mouldy damp homes are insulation and better energy efficiency of buildings as well as access to cheaper renewable energy.

A spokesperson for the End Fuel Poverty Coalition, commented:

“These chilling findings underline why we need further urgent action from the Government to step in and help households stay warm this winter.

“Vulnerable households, including young families and expectant mothers, are struggling because of Ministers’ failure to provide emergency financial assistance this winter and longer term failures to invest in the permanent solutions to fuel poverty, such as insulation and reform of energy pricing.

“Instead of help from the Government, in the form of an Emergency Energy Tariff for vulnerable households and a Help To Repay scheme for those in energy debt, all parents got from the Chancellor in the Autumn Statement was the cold shoulder.

“The real life impact of decisions made in Westminster are now clear to see.”

Fiona Waters, spokesperson for the Warm This Winter campaign which commissioned the research, commented:

“Families are feeling the squeeze from every direction with the lowest living standards since records began and the poorest and most vulnerable in society bearing the brunt of sky high energy bills which will be increasing again in January.”

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

“Across the country social workers report seeing families struggling in living conditions that are more like Victorian novels than modern day Britain. It’s clear that households – especially those most at risk from the health complications of living in cold damp homes – need more support.”

Jonathan Bean from Fuel Poverty Action added:

“We’ve long argued that young children must be protected and kept warm in the winter. This is why the energy industry’s rush to start forcing households with children over the age of two onto prepayment meters, which can click off and leave people without energy, doesn’t make any sense.”

ENDS

[1] Methodology note: Opinium conducted a nationally representative survey among 2,000 UK Adults from the 24th – 28th November 2023. Results were weighted to be nationally representative. Population estimates based on ONS projections of adults aged 18+ for mid-2021 (the latest figures available), i.e. UK 18+ population 53,188,204.

[2] Young Lives vs Cancer Social Worker Rebecca recently blogged about the poor quality housing issues faced by some children and young people with cancer.

Call for Help To Repay scheme as energy bills debt soars

An estimated 5.5 million UK adults are now in energy bills debt, according to new research from the Money Advice Trust.

The latest findings confirm the heavy toll that high energy bills are taking on household finances with 2.1 million more people in energy arrears in April 2023 than in March last year and millions struggling to access help from their energy suppliers.

The figures are also more than previous data from the Warm This Winter campaign suggested earlier this year.

In the wake of the research, the End Fuel Poverty Coalition has joined forces with Money Advice Trust, StepChange Debt Charity, Warm This Winter and other organisations to ask the Secretary of State for Energy Security and Net Zero to set up a ‘Help To Repay’ repayment-matching scheme.

Campaigners believe this will provide a safe route out of debt for struggling households.

The Money Advice Trust research finds that millions more households were struggling with their energy costs in April than in March 2022, with support from energy suppliers – which is vital to help them repay arrears – proving difficult to access.

While support is available from energy providers for people who are struggling, an estimated 3.9 million people (7 percent) said they have not been able to access help for their bills after contacting their suppliers for support.

A further 3.2 million people (6 percent) reported not being able to get through and contact their supplier for help when they had tried to do so.

Joanna Elson CBE, chief executive of the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said:
“Energy bills might finally be falling – but for millions of households, the effects of this cost of living crisis are already baked in. With more people falling behind on energy and other essential bills and millions facing unaffordable demands for repayment, we need urgent action to make sure everyone has access to a safe route out of debt.

“The government has already provided substantial support to help with the cost of living – but no-one should underestimate the scale of this continued crisis.

“The Help To Repay payment-matching scheme we are proposing will help those who otherwise will simply not be able to dig themselves out of the energy arrears that this crisis has created. And for those most in need, the government should introduce an Essentials Guarantee to link the rate of Universal Credit to cover the cost of essential goods like food and energy.”

A spokesperson for the End Fuel Poverty Coalition commented:

“Energy debt is surging to unprecedented levels and it’s clear that households are just unable to cope.

“The majority of this new debt is caused by the record high energy prices which have caused misery for millions, but generated excess profits for the firms involved in Britain’s broken energy system.

“Rather than end the Windfall Tax early, as the Government plans to do, it should instead look at how this could be used to help get those people suffering back on an even keel.

“Not only would this help reduce levels of fuel poverty now and into next winter, but it will also help wider household finances, ensuring people no longer have to cut back on essentials.”

Research by the University of Bristol has found only 26% of households have not had to take measures to cut back on spending and the majority of people are now taking steps to cut costs in one or more areas.

A third (35%) were not able to afford a healthy balanced diet at least once in the past month and one in five of those in serious financial difficulties had not eaten for a whole day at least three times during the last month.

Free, expert advice is available from charity-run services like National Debtline.

Full detail of the Help To Repay proposal submitted to the Government can be read online: https://moneyadvicetrust.org/media/documents/Help_to_Repay_-_Energy_arrears_scheme_proposal.pdf

Energy Bills Support Scheme gaps hit areas of high fuel poverty

New analysis of Energy Bills Support Scheme (EBSS) data reveals that in some areas of the country more than one in twenty payments were not delivered or vouchers left redeemed.

Regional data from the first five months of the scheme has revealed the areas with the highest rates for missed payments are some of the areas hardest hit by fuel poverty.

These include the London Borough of Brent where 6.62% of payments have not been delivered or redeemed, Birmingham (4.68%), Stoke (4.00%), Wolverhampton (4.26%), Coventry (3.86%) and Sandwell (4.21%).

Rural areas are also hit with poor delivery rates, such as Na h-Eileanan Siar (4.86%), Pendle (4.28%) and even Rishi Sunak’s own backyard of Richmondshire (4.08%, which equates to £285k still owed to his constituents by energy firms).

In Scotland, the Herald reports that that the value of these missed payments tops £29m. In cities like Birmingham, Glasgow and Leeds, the value of these missed payments are over £4m a piece.

Data for the full scheme also reveals that energy firms still owe £241m to households through the support scheme, a majority of that being through unclaimed PPM vouchers with new figures expected to be published next week.

A spokesperson for the End Fuel Poverty Coalition, which is part of the Warm This Winter campaign, commented:

“Since the initial revelations about the missing payments, it is welcome that energy firms have made more effort to track down customers and deliver payments to them, but this work must continue until they have exhausted every avenue to get money into the hands of people who need it.

“However, what is very concerning about these figures, is that the Energy Bills Support Scheme is not getting through to the very areas of the country which need it most.

“In towns and cities, which will also be the battlegrounds in the next general election, households have been left in the cold this winter as payments are not getting through and vouchers are left unredeemed.

“But even in rural areas – where many homes have also suffered from delays in payments not shown in these figures by being offgrid – there are still massive gaps in the support getting through.

“If anyone feels they have missed out on Energy Bills Support Scheme payments they should contact their energy firm immediately.”

Frazer Scott, CEO of Energy Action Scotland, said:

“It is simply disgraceful that so many households have been failed by Government support. The EBSS vouchers expire in June and it is now unlikely that most of these households will now receive some or all of the £400 to which they are entitled.

“People will have simply gone without heat and power across the coldest months putting their health and wellbeing at risk. It is made all the more difficult due to the credit holding limitations of older prepayment electricity meters. This ranges from £99 to £250 depending on your meter and supplier. The larger the outstanding voucher value, if you have it, the more difficult it may be to apply it.

“Those living in rural areas face even more barriers to accessing the value of their vouchers with many having to pay significant travel costs to access their local post office or other redemption point.

“It isn’t right that those in the lowest incomes are enduring yet another unfairness in a system that for the majority, including the most wealthy of households, people with multiple homes, was provided automatically.”

Any money unclaimed by the public or undelivered by the energy firms is due to be returned to the Government after deadline for claims to the scheme ends in June.

ENDS

Full Data Set Available: EFPC April energy-bills-support-scheme-gb-payments-april-2023

Energy firms set for profits boost from fixed tariffs

Research from Future Energy Associates has estimated that two energy firms that have offered new fixed tariffs are set to rake in an average of £484 and £469 respectively in profit on each customer. [1]

The profits will be driven by energy firms buying energy at a fixed cost and selling it to customers at a level below the current Energy Price Guarantee (EPG), but above the likely level of energy bills when the Ofgem price cap comes back into force for consumers from 1 July.

Analysts predict that based on an average household bill under the expected Ofgem Price Cap of £2,064 [2], customers who switch to the deal will lose out by £212 on the Ovo fix or £197 on the SSE offer compared to sticking to the Government’s EPG rate and then moving to a variable tariff governed by the Ofgem price cap from 1 July. [3]

A spokesperson for the End Fuel Poverty Coalition which is part of the Warm This Winter campaign, commented:

“The Wild West of the energy market is back, with energy firms trying to make a quick buck from people’s confusion with their energy bills.

“They are playing on the cost of living crisis to try and tempt customers onto a deal that offers security, but appears to come at a very high price to their pocket. People continue to be penalised by Britain’s broken energy system.”

Clem Atwood from Future Energy Associates, commented:

“After record breaking power prices of last winter we are now seeing forward electricity prices come down, meaning suppliers are now paying less for power than accounted for by Ofgem’s price cap.

“While costs continue to come down, suppliers will look to exploit consumer desires to move onto lower rate tariffs by trying to fix customers at close to current rates. Our analysis of costs shows that recent fixed tariffs are likely to make suppliers around 20% profit, whilst fixing customers at unit rates above the forecasted Ofgem price cap.”

Tessa Khan, executive director of Uplift, said:

“Energy companies are addicted to trying to make eye-watering profits at every turn. Having raked in billions in a matter of months from both government support schemes and the pain felt by businesses, they are now starting to turn again to our energy bills.

“It is yet another sign that the government needs to step in and fix the UK’s broken energy system. We need a complete overhaul of the system, including switching to cheaper renewables and funding for insulation, not a return to the bad old days of profiteering energy firms ripping us off.”

Jacky Peacock, Head of Policy at Advice for Renters, commented:

“Many of the families we assist have restricted their energy use to two hours a day and may well think that the fixed price guarantee will result in a saving. We’ll be doing our best to warn them to avoid such offers which are little short of scams.”

Ruth London from Fuel Poverty Action added:

“After all the misery suppliers have inflicted on their customers – unpayable bills, break-ins to impose unwanted prepayment meters, ill health, and cold, dark homes – is this a time for dirty tricks? The suppliers are playing on people’s fears and when we can’t pay their inflated prices we will be blamed and punished for going into debt.”

Notes to Editors

The content of this story is provided based on the assumptions below and the analysis by energy data experts. It should not be taken as formal financial advice. The prices of energy are correct at the time of analysis and may change considerably from the predictions made here.

[1] Tariffs examined: Ovo 1 year fix and SSE 1 Year Fix v28. Supplier Profits Calculated Utilising Comprehensive Methodology from Future Energy Associates (FEA), outlined below. In order to evaluate supplier profits, a comprehensive methodology was employed, which encompassed several steps as detailed below:

Firstly, the FEA collected electricity forward prices for a 12-month period, which is the level an energy supplier could be expected to pay for the energy they then re-sell to domestic customers.
Subsequently, electricity wholesale prices were calculated for each quarter, with both seasonal fluctuations and peak/base prices taken into consideration.
These wholesale prices were adjusted according to each of the non-wholesale price components present in a typical household bill. The analysis differentiated between components that adapt to decreasing wholesale prices and those that remain fixed, irrespective of wholesale price fluctuations.
Following this, electricity retail price unit rates were calculated by multiplying the annual Ofgem consumption values and standing charge forecasts. This process yielded the electricity portion of the household bill.
With respect to gas, the same difference ratio between gas and electricity prices, as derived from Cornwall Insight’s price cap forecasts, was assumed.
Lastly, gas and electricity prices were combined to determine the annual household energy bills, thereby allowing for a comprehensive assessment of supplier profits.

A chart is available which shows that, for the average household, fixing now would result in a higher bill. This model assumes that the whole difference between the cost to the consumer and the cost to the supplier is profit. This assumption is a fair one as Ofgem and suppliers regularly correspond on the costs incurred by suppliers in delivering supply to consumers, which Ofgem then reflects every quarter in its price cap calculations (and therefore has been reflected in the operating cost assumptions made by this model). This process ensures energy firms should not be subject to significant operating losses on providing domestic supply.

This is summarised in the table below.

OVO, SSE Case Study (all numbers are GBP)
Tariff Names	OVO 1 Year Fixed 23 March 2023	SSE 1 Year Fixed v38
Annual Costs to households £	2275	2260

Ofgem Price Caps / EPG	Forecasted Average Ofgem Price Cap (01/04/23 – 30/0304/24)		See note [2]
Annual Costs to households £	2063		See note [2]

Tariff Names	OVO 1 Year Fixed 23 March 2023	SSE 1 Year Fixed v38	Notes
Annual Excess Costs To Households	212	197	I.e. difference between fixed tariff and average Ofgem Price Cap
Annual Supplier Costs of buying energy	1791	1791	Based on FEA calculations on forward energy prices when fixed tariffs announced.
Annual Supplier Profits £	484	469	See above for assumptions.
Annual Profits %	21.27%	20.75%	As a percentage of the cost a consumer could be paying on the Ofgem Price Cap.

[2] Based on EPG, Ofgem Price Cap and latest Cornwall Insight predictions and adjusted by FEA to take into account a full year of price cap changes and the Energy Price Guarantee operating for part of the year.

[3] A chart is available to outline the current situation for energy bills in comparison to the fixed tariffs now on offer.