Fuel poverty to hit 11m households in April

Ending the Energy Price Guarantee in April could see almost 11 million UK households in fuel poverty, a coalition of industry bodies has predicted.

While industry commentators welcomed new chancellor Jeremy Hunt’s announcement that the government will target support at the most vulnerable, concerns were raised that households face “huge uncertainty” over what will happen after the new cut-off date for the guarantee.

The End Fuel Poverty Coalition is made up of more than 60 organisations and campaigners, including charities such as National Energy Action and Age UK.

The group said its forecast is based on the latest estimates of energy prices from Cornwall Insight, which predict the average consumer will pay more than £4,000 from April next year as things stand.

As such, the coalition predicts that households in fuel poverty will rise from 7 million currently to 10.7 million. This is an increase from 24% to more than 37% of all households.

Although numbers are predicted to fall slightly later in the year, the coalition is still predicting that more than 10 million households will be in fuel poverty in winter 2023/24.

The figures come as a group of cross-party MPs have come out in support of introducing a universal basic energy allowance for households to replace the energy price cap.

A free basic energy allowance is the core component of campaign group Fuel Poverty Action’s Energy For All demand, which would see all households given enough energy to meet basic heating, cooking and lighting needs.

A petition calling for such an allowance has so far garnered more than 600,000 signatures and will be delivered to Downing Street on Wednesday (19 October).

Fuel Poverty Action’s Ruth London said the outlook for vulnerable customers was “frankly terrifying”, adding: “It is now all the more essential – and more possible – to win a totally new pricing framework like Energy For All. Finally there is now support for this inside Parliament.”

A spokesperson for the End Fuel Poverty Coalition added: “The government may have brought some stability to the markets, but it has come at the cost of huge instability in households’ finances.

“The new chancellor must work quickly, and with consumer groups and charities, to design a new package of support and energy market reforms that will help those in fuel poverty now and post April.

“But while the political focus on energy bills may now have shifted to next April, millions of the most vulnerable will be living in cold and damp homes this winter and will need further financial and non-financial support.”

Support for customers in the face of rising energy bills will be one of the key discussion points at Utility Week Forum on 8-9 November in London. Find out more here.