Millions of families at risk of ‘fuel stress,’ says think tank

The Resolution Foundation has warned that millions of households are at risk of ‘fuel stress’ this winter. The think tank, which is focused on improving living standards for low and middle-income families, is urging the government to support vulnerable people who are no longer eligible for the winter fuel payments.

The charity’s report says that 7.7 million families in England experienced fuel stress in 2023-24. The research was published today (1 October), the same day that typical gas and electricity prices are rising by 10% in England, Scotland and Wales.

What is fuel stress?

Fuel stress is when households have to spend least 10% of their income on heating their homes. With the price of energy going up, the Resolution Foundation has warned that fuel stress is no longer confined to the poorest households but to low and middle-income families too.

The think tank claims that the winter fuel payments, which provide one-off payments of £200 or £300 to help older people with their heating costs, were ‘poorly targeted,’ as working-age families are more likely to be living in poverty than pensioners.

The research warns that around 77% of single-parent households and 56% of couples with children are likely to experience fuel stress this winter, compared to 24% of pensioners.

But the report acknowledges that limiting the benefit to only those who receive pension credit or other forms of benefits, risks creating hardship for some low-income pensioners.

What does the Resolution Foundation propose?

To lessen the impact of rising energy bills this winter, the report is calling on the government to consider a number of measures. One measure is the expansion of the cold weather payments scheme, which gives recipients £25 when local temperatures drop below freezing for at least a week.

Currently, only those receiving pension credit and certain other benefits are eligible for the scheme. The Resolution Foundation is calling for the payment to be rolled out to all recipients of means-tested benefits, including child benefit, disability benefit and the state pension. This would increase the number of eligible families from 4 million in 2023/24 to 12 million.

Rather than bringing back the full winter fuel allowance, the authors are urging for non-pensioners, many of whom are more likely to be living in fuel stress, to be considered.

Alex Clegg, economist at the Resolution Foundation, noted how couples with children are more than twice as likely to experience fuel stress as pensioner households, so any new support should not be limited to pensioners.

“Reforming and expanding cold weather payments offers a viable quick-fix solution to help keep households warm when the mercury drops this winter.”

What has the government said?

In response to the report, a government spokesperson said they are doing everything they can to support vulnerable families this winter, “including with the £150 warm home discount expected to support three million eligible households, while around 1.3 million households in England and Wales will continue to receive up to £300 in winter fuel payments.”

Are you behind on your energy bills?

For more information on steps to take if you’re struggling with your gas and electricity bill payments, read our guide on what to do about energy arrears.