Fuel poverty isn’t falling despite policies to help

The number of households living in fuel poverty has remained flat over the past two years, according to a new report.

Government policies to reduce fuel poverty haven’t helped to bring down the number of fuel-poor households like we saw in the ten years before.

In 2023, around 3.17 million households were living in fuel poverty. This was unchanged from 3.18 million households in 2022.

But from 2010 onwards levels of fuel poverty fell by 40% over a decade, followed by 5 years from 2019 to 2024 where fuel poverty remained flat before rising.

The flatline figures follow several global energy shocks that have taken place since 2021, including the pandemic and Russia’s invasion of Ukraine in 2022. And come ahead of energy bills rising by 10% from 1 October.

Commenting on its annual report Caroline Flint, Chair of the Committee on Fuel Poverty, said: “There has been a stalling of progress – fuel poverty has flatlined. I don’t think any government anticipated this.  Perhaps the stable energy prices for most of the 2010s created an optimism that fuel poverty would continue to fall for years to come.  That optimism was misplaced. 

Last year, the Committee hoped that with the pandemic behind us, energy efficiency programmes would step up and progress would continue – even if the government’s milestones were at risk of being missed.  Now, it seems the pandemic – when so much stopped - obscured the lack of progress being made.

This report is not defeatist.  The Committee believes fuel poverty can be beaten.  But for too many low-income households, the unaffordability of bills, especially in the coldest months, is all too real.  We foresee that targeted financial support, possibly including the use of social tariffs, for vulnerable and low-income households may be needed for some years to come.”

What should you do if you can’t afford your energy bills?

There is help available if you’re struggling to pay your energy bills.

You should contact your supplier as soon as possible if you can’t pay your bill.

Under Ofgem rules, they must work with you to find a payment plan that is affordable to you.

According to the industry regulator, you can ask for:

• a review of your current payments and debt repayments
• payment breaks or reductions
• more time to pay
• access to hardship funds
• advice on how to use less energy

Hardship funds and grants

Your supplier might have a hardship grant that could help with your energy costs, pay off debts, or cover the cost of making energy-saving improvements to your home. Speak to them to find out what support they offer.

There are also several charities providing grants and financial support to households struggling with energy costs. Find a list of those at Turn2Us. What you qualify for will depend on your personal circumstances.

Government support

The government offers a range of support to people struggling with bills, such as:

• winter fuel payment
• cold weather payment
• warm home discount
• fuel direct scheme

Use our free benefit tool to see if you are eligible for help.  

You might also be able to get help for energy bills from your council through the household support fund, although this is set to close at the end of September 2024.

Join the priority service register (PSR)

All energy suppliers have a priority services register.

The register protects and helps vulnerable energy customers who might need extra help, such as pensioners, people with health conditions, households with children under five, and those who need to use medical equipment.