Energy Price Cap Reaction

February 25, 2026

Energy Price Cap Reaction Featured Image

Responding to today’s confirmation from Ofgem that the energy price cap will fall by 7% from 1st April, Matthew Cole, CEO of Fuel Bank Foundation, said:

“A reduction in bills is welcome news and will offer some relief to households who have been under relentless pressure. But we must not confuse a fall in bills with an end to fuel poverty. Energy bills remain hundreds of pounds higher than before the energy crisis, and for many families, that is still simply unaffordable.

“This fall is being driven by the removal of policy costs from bills rather than cheaper energy. While we support action that takes costs off people’s bills, the underlying price of energy remains high, and millions are still carrying debt built up over years of sky-high charges.

“There is also a dangerous assumption that once bills come down slightly, or winter passes, the problem eases. It doesn’t. Energy is essential all year round to wash, cook, clean, refrigerate food and medicines, and power vital medical equipment. These are basic needs, not luxuries. Yet there will be no further targeted support until next winter, leaving low-income households exposed over the summer months.

“Lower bills are a step in the right direction. But we need a system that recognises energy as essential, not optional. That means targeted, long-term support, fairer standing charges, simplified prepayment, sensible debt practices, and sustained investment in improving the quality and efficiency of our homes. Without meaningful structural change, fuel poverty will continue to remain a year-round reality for millions.”