Contact: Anna Cook, Head of Communications and Campaigns, anna.cook@nea.org.uk Mobile: 07884 371913
October energy bill rise to plunge 400,000 more UK households into fuel poverty this winter
- 6 million UK households to be in fuel poverty from 1 October, according to National Energy Action’s figures.
As Ofgem announces the new price cap today (Friday 23 August), fuel poverty charity National Energy Action’s figures show the number of UK households in fuel poverty will rise to 6 million from October. This is an increase from 5.6 million who are currently trapped in fuel poverty. A typical annual energy bill will be £1,717, 9% higher than it currently is.
This increase comes as millions of vulnerable pensioners now miss out on the Winter Fuel Payment. Not only do low-income pensioners who just fail to qualify for means-tested benefits miss out, so do the thousands who are eligible for pension credit, but who do not receive it.
Energy bills fell slightly this summer, but this is usually when households use the least energy. This latest increase will kick in just as temperatures typically begin to drop. It also comes as energy debt is at record levels, with customers owing over £3 billion.
National Energy Action says that it is crucial that all eligible households are put on the means-tested benefits that unlock access to energy bill support.
National Energy Action Chief Executive Adam Scorer says, ‘Struggling households are in the third year of an energy crisis. Even before the crisis, our clients had no slack in their budgets. Three years on, they are mired in record levels of energy debt and severely rationing their energy.
‘The gap in support for vulnerable households who are not on means-tested benefits has grown. They cannot go into another winter with even less support than last.
‘If the receipt of pension credit were automatic, this would guarantee all eligible households access to the benefits attached to pension credit. Around 880,000 eligible pensioners do not receive pension credit and are cut off from Winter Fuel Payment.
‘There is still time for Ofgem and UK government to act for those at greatest risk, but without support, this winter. Actively reduce their levels of debt and extend support beyond the hard edge of means-tested benefits. Government says it can only stretch the financial elastic so far, but they are cutting off support from those who have zero flexibility in their own budget, with no choice other than debt or going cold.’
ENDS
Notes to editors
- National Energy Action (NEA), is the national fuel poverty charity, working across England, Wales and Northern Ireland, to improve the lives of people in fuel poverty. We directly support people with energy and income maximisation advice, and we advocate on issues such as the current energy crisis and the need to improve the energy efficiency of our homes. See: www.nea.org.uk/
- The definition of fuel poverty that National Energy Action uses is that a household is in fuel poverty if it needs to spend 10% or more of its income on energy in order to maintain a satisfactory heating regime.
- An estimated 10 million pensioners now miss out on Winter Fuel Payment. Of those, Age UK says 2 million are vulnerable.
- Ofgem has also already confirmed that energy debts are at record levels. This means, alongside their usage for the winter, households will also already be paying back large debts going into the winter.
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