Fuel Bank Foundation Comments on Forecast Rise in Energy Bills in April

The average dual fuel household paying by direct debit and those that prepay for energy using a prepayment meter could see annual bills of up to £1,800.

Commenting on the forecast increase, Matthew Cole, CEO of Fuel Bank Foundation, the national fuel poverty charity, said:

“Any hope of energy bills coming down have been dealt a major blow, with the latest forecasts pointing towards an increase of around three per cent in April, with some analysts forecasting an increase of up to five per cent. This would mark the third consecutive quarter of energy price hikes.

“Before COVID, annual bills of £1,200 were considered high, and yet here we are five years later and £600 more expensive and we’re talking about £1,800 being high.”

Household Impact

“As a charity, we’re already seeing hundreds of thousands of desperate people being referred to us for help because they don’t have the money to keep the heating and lights on at home. This winter alone, we estimate that quarter of a million people will be helped by Fuel Bank.

“A longitudinal survey of people helped by Fuel Bank Foundation, conducted between June and November last year, found that more than 60 per cent are more concerned about their financial situation than they were 12 months ago. Forty per cent are also still having to make the choice between topping up their prepayment meter and buying food at least once a week.

“While some households are just about weathering the storm, there’s a lot of people, such as those on low incomes, those with higher energy demands, for powering medical equipment for example, and those whose homes have poor energy efficiency, who are going to find it really tough over the coming months. Our analysis shows that over 40 per cent of the people we support, month in, month out, have a critical dependency on energy.”

Support

“With six million households in the UK still in fuel poverty, the government, Ofgem, the energy sector and industry bodies must work collaboratively to address the root causes of fuel crisis and to provide the strategic and tactical mitigation that’s needed to alleviate and eradicate fuel poverty for good.

“We understand and appreciate the fiscal challenges the country is currently facing, and that energy prices follow world events, but we need to consider and implement change that supports those with an affordability challenge, if only to avoid greater costs in years to come.

“Warm, energy efficient homes are of course a big part of the solution, and we welcome the government’s consultation on plans to force private landlords to meet higher energy performance ratings in their properties by 2030, thus ending the misery of millions of private renters who are forced to live in sub-standard accommodation.

“However, this will take time. In the meantime, more support and protection against higher fuel bills for people on the lowest incomes and those with the highest energy costs is needed to avoid them falling through the gaps.

“One way of achieving this would be to provide additional support – many call this a social tariff – that helps close the fuel poverty gap for vulnerable and low-income households. It wouldn’t be a flat reduction in energy bills like the Warm Homes Discount £150 payment, but rather a variable, dynamic discount on energy bills that reflects the current cost of energy that ensures those at risk of fuel crisis are supported. A similar model of support must also be developed to support those who rely on unregulated fuels, such as heating oil or LPG, or who buy energy via their landlord.

“We hope to hear more about the government’s plans on how it intends to tackle the fuel crisis in the forthcoming Spring Budget.”