Energy crisis far from over despite April price cap reduction, warns Fuel Bank Foundation

On 1st April, the energy price cap will fall by 7%, reducing the average annual household bill by around £117. While this may appear to be welcome news, the charity stresses that this is not a reduction in the cost of energy. The decrease largely reflects changes in how policy costs are applied to bills, rather than lower wholesale energy prices.

Energy prices had started to ease slightly following the peaks of late 2022 and early 2023, however recent global tensions have reversed this trend, driving a new spike in fuel costs. The Fuel Bank Foundation now forecasts that the energy price cap could rise by at least £205 in July, placing even further strain on households.

Families supported by Fuel Bank, already living in fuel poverty, are unable to afford essential energy for heating, lighting, hot water and cooking, leaving them highly vulnerable to further price shocks.

Without urgent government action, more households will be forced to make impossible choices between heating and other essentials.

Fuel Bank Foundation is calling on the government to introduce targeted, long-term financial support for vulnerable households, and for suppliers to adopt more sustainable and compassionate approaches to energy debt, for example, pausing debt repayments over the colder months to ensure every penny pays for vital warmth when need is greatest, with debt recovered in the warmer months.

While Fuel Bank Foundation continues to help those struggling, the charity warns that immediate, long-term solutions are essential to address the anticipated energy price rises this year.