Charity ‘forced to take action’ over government’s support failings

A charity says it has been “forced to take action” by doubling the support it provides to vulnerable consumers due to the government failing to provide any additional energy bill help this winter.

Fuel Bank Foundation, which provides emergency fuel vouchers for struggling households with prepayment meters (PPMs), has increased the amount of financial support it is providing, costing it an additional £2.2 million.

It is almost doubling the value of its vouchers, from £49 to £89 which it says will provide around ten days’ worth of heat, light and power for the average household.

In winter 2022/23 the government provided every household a £400 discount on their energy bills via the Energy Bill Support Scheme. This ended in March last year and while prices are still high compared to before the energy crisis, no more such targeted support has been announced.

The Energy Price Guarantee meanwhile, which capped all household bills at £2,500 per annum, ended in June 2023. It is however still being used for PPM customers as a way of tackling the PPM premium.

Matthew Cole, head of Fuel Bank Foundation, said: “Without targeted energy bill support from the government, budgets will be at breaking point.

“Recognising this, we wanted to do something meaningful to help those who are going to struggle this winter. Increasing the value of our winter fuel vouchers was the obvious choice.

“Before the energy crisis, a £49 fuel voucher provided around seven days’ worth of credit on a meter, but as fuel costs increased, this reduced to between three and five days, meaning we were providing less support for the same money.

“From 1 December last year we started to flex the value of vouchers to ensure people were getting at least seven days’ of heat, light and power. However, our ambition has always been to provide clients with ten days of energy, and with the increase to £89 we’re pleased to have achieved our goal.

“Unfortunately, providing this level of support and the additional money needed to fund it is unsustainable in the long term.”

Last year, the charity saw an 85% increase in demand for financial support and it helped nearly 640,000 people across the UK.

Cole added: “Fuel vouchers are a short-term fix, albeit an important one. For people who have no money to top up their meter, the vouchers are a vital lifeline.

“However, as a charity we’re determined to find a longer-term solution, enabling our clients to help themselves and getting them out of the fuel crisis cycle.”

A Department for Energy Security and Net Zero spokesperson said: “We recognise the cost-of-living challenges families are facing, which is why we are spending £104 billion supporting households with bills.

“Our Energy Price Guarantee remains in place to protect people until April. We’re also continuing to support the most vulnerable, with three million households expected to benefit from the £150 Warm Home Discount and £900 for those on means-tested benefits.”