Households vulnerable to another energy crisis, MPs warn

More needs to be done to protect households from the effects of another energy crisis, a group of MPs have warned.

According to the Public Accounts Committee (PAC), the government “deserves credit” for supporting people as energy prices soared in 2022.

However, it believes that not enough has been done to ensure vulnerable people get effective support if a price spike happens again.

The PAC pointed out that existing schemes to protect against international gas price fluctuations aren’t sufficient to shield households.

Instead, it says the government is relying on the expansion of renewable energy to reduce bills over time.

Volatility ‘is the new normal’

Sir Geoffrey Clifton-Brown, chair of the PAC, said the government “should be commended” for how quickly it’s sought to “shield billpayers” from volatile energy markets in recent years.

However, he stated that volatility has become “the new normal”, thanks to soaring energy demand and an uncertain geopolitical outlook.

“Some households remain exposed at a time when the UK’s electricity bills appear world-beatingly high and debt weighs down billpayers’ finances to an alarming degree,” Sir Geoffrey commented.

As a result, he believes the government must be “fully prepared to issue targeted and effective support, with those most in need the focus of that support”.

“We cannot see a repetition of precious funds being beamed out across the spectrum to those who do not require help,” Sir Geoffrey added.

Government’s focus on renewables ‘will bring bills down for good’

In response to the PAC report, the government said its mission for clean power is “the only way to protect UK billpayers from future price shocks”.

“We will bring down bills for good by moving towards a clean, homegrown power system that we control,” a spokesperson commented.

The government added that it is rolling out support for consumers, including through proposals to expand the warm home discount to almost 3m more households next winter, and allocating nearly £2bn of funding to creating warmer, more energy-efficient homes across England.

What to do if you’re struggling with energy bills

If you're finding it hard to keep up with rising energy bills, talk to your supplier about any help they can provide, like grants.

It’s also well worth checking to see what other support you might be eligible for.

Use our benefits calculator or get in touch to find out what you could claim.

And don’t forget to try our handy budget planner, so you can see where you could save money in your household and free up cash for vital expenses.