“In the context of energy prices hitting their highest in about three years and expected to rise further in January, it was paramount that the Government support the most vulnerable households already struggling.
“Targeted intervention is something we’ve been calling for at Fuel Bank Foundation, so we welcome the £100 of direct support for households in lower council tax bands. This, along with the extension of the removal of VAT on electricity saving £50, will enable families to access the energy they need this winter. Additionally, scrapping standing charges on gas will make a tangible difference for millions of households once introduced, with three in five saving £47. These changes, combined with a pathway to levies being lifted off bills in the future, create optimism for increased energy affordability in the long term.
“The next few months are going to be tough for many households that prepay for their energy. Government statistics show that households that pay for electricity by prepayment meter have the highest rates of fuel poverty. Research suggests that during winter and after accounting for housing costs, prepayment customers need to spend more than 30% of their income on energy. They’re also paying nearly £300 more over winter than their direct debit neighbours.
“This all points to the need to reform prepayment meter billing to spread the cost throughout the year. We believe suppliers should be mandated to pause debt repayments over winter and rebalance standing charges across the year.”
