The charity forecasts that the annual energy price cap will rise to around £1,848 for a typical household paying by direct debit and £1,804 for households using prepayment meters, reflecting continued volatility in global energy markets.
While the July rise represents an increase of around £200 a year, Fuel Bank says many households may not immediately feel the full impact because energy consumption falls during the summer months. However, the charity warns that the real financial pressure will arrive in autumn and winter, when colder weather drives up household energy use.
Families supported by Fuel Bank are already living in acute fuel poverty, unable to afford essential energy for heating, lighting, hot water and cooking. Without further support, many more households will be forced to severely ration energy use or go without heating and power altogether this winter.
Matthew Cole, CEO of Fuel Bank Foundation, said:
“Although prices are rising again from July, the real challenge will come later in the year when temperatures drop and households start using more energy. That’s when families already on the brink will really feel the impact.
“We are forecasting annual energy costs of around £1,900 by winter. For the people we support, that could mean roughly another £300 in costs over six months alone. Many of these households are already rationing heating, skipping meals and going without basic essentials.
“That is why we need to prepare for winter now. We need practical, targeted support for the households most at risk, to stop people having to choose between heating and eating, or worse, living without energy altogether.
“More people will receive the Warm Home Discount this year, which is a positive step forward, but this £150 payment simply isn’t enough to close the gap. Over the summer, we’ll continue talking about the practical things households can do at home to make sure every bit of heat and value is squeezed from every unit of energy used.
“We know the government is actively considering interventions ahead of this winter, but we urge ministers to act now and use existing mechanisms that can be delivered quickly and automatically.”
