Fuel price rises: We must stop millions of UK families going into #FuelPoverty

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National Energy Action
National Energy Action is asking Rt Hon Rishi Sunak MP, Chancellor of the Exchequer, UK Govt
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Fuel price rises: We must stop millions of UK families going into #FuelPoverty
National Energy Action
National Energy Action

Update from NEA

​Thank you for your support - we are currently engaging in the Government working groups to help ensure that the details of the Heat Now Pay Later energy bill rebate work for fuel poor households.


Energy Prices are Increasing

In February, the energy regulator Ofgem announced a record 54% increase to the energy price cap to take effect from April. Prepayment meter customers will see the biggest increase, with their bills up by an additional £3 billion per year, £200 million more than households on Direct Debit. This is despite the fact these customers have lower incomes and are much more likely to already be in significant debt to their energy supplier. 

Fuel Poor Households Will be Hit Hard

Our research suggests that 6.5 million households across the United Kingdom will be in fuel poverty in April, 2 million more than just a year ago. Sadly, with the dreadful scenes in Ukraine, wholesale prices are already rocketing again with some analysts suggesting this could lift average bills to £3,000 per year. Ofgem could raise prices to that level in October, or potentially even earlier. On top of record increases in energy bills, historically high levels of inflation, higher rents and fuel prices mean millions of families are now struggling to afford the basics they need to live their lives and raise their children.

The UK Government has Taken Action, But it is Not Enough

We recognise that the Government has introduced the Energy Bill rebate scheme, however, this will not be enough to mitigate the impacts for the poorest households. The £200 energy bill rebate will not take effect until October, and will be paid back through increased energy bills in subsequent years. And while over three quarters of households that will benefit from the £150 Council Tax rebate are not in poverty, millions of low-income households are already getting some relief or are fully exempted from Council Tax and will not benefit from this rebate. 

We are calling on the Government to:

  • Exempt vulnerable households, in particular prepayment energy users, from paying the £40/year levy that will follow the £200 energy bill rebate. 
  • Provide additional support for low income households ahead of next winter, for example through a bigger Warm Home Discount that reaches more people, or by expanding the Winter Fuel Payment beyond pensioners.
  • Develop a social tariff that is additional to current energy market protections, providing a below cost energy price to low-income households
  • Help to clear utility debts through starting a payment matching scheme, matching every pound that a household makes towards their utility debt repayments.

For more information...

We have plenty more information and detail available on our energy crisis webpages - https://www.nea.org.uk/energy-crisis/

National Energy Action

About National Energy Action

National Energy Action (NEA) is the national fuel poverty charity, covering England, Wales and Northern Ireland. We aim to ensure that everybody can live in a warm and safe home.
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