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Millions of people are facing a “cliff-edge” in support for energy bills, several leading charities have warned, as the government is urged to take action to tackle rising costs.
Around six million people are set to benefit from the Warm Home Discount this year, which gives a £150 rebate to energy bills for qualifying households.
But a new report commissioned by disability charity Scope has found that many will face a gap in support after this scheme expires in 2026.
The research carried out by Public First finds that energy bills are £700 higher than in 2021, with millions struggling to afford the costs after across the board cost of living pressures.
There are now around 2 million households are in arrears, and as many 6.1 million estimated to be living live in fuel poverty, it added.
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Household energy bills will fall by 7% from July, Ofgem has confirmed (PA) (PA Wire)
The findings come as Ofgem announces its energy price cap will rise by two per cent in October, taking the average bill from £1,720 to £1,755.
Abdi Mohamed, head of policy, research and influencing at Scope, said: “The system is broken. As the fuel poverty gap widens, millions of disabled people are being pushed deeper and deeper into fuel poverty.
“Life costs more if you are disabled – on average an extra £1,095 a month. We hear from disabled people every day who tell us they are unable to power vital medical and mobility equipment, facing increasing pain and losing their independence.
“The government must act with urgency to close the devastating gap in support and tackle this crisis.”
Signatories including energy company E.ON and Age UK called on the government to extend the Warm Home Discount, and increase it to £400 in recognition of rising costs.
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Signatories including energy company E.ON and Age UK called on the government to extend the Warm Home Discount (Rui Vieira/PA) (PA Archive)
This should be just the start, the groups add, urging that further discounted energy bill support be in place by 2027/28. This would come in the form of a ‘social tariff,’ starting at discounts of £700 for households most in need.
Unlike the Warm Home Discount – which has been extended to most benefit recipients this year – the new tariff would offer tapered, means-tested support to all households earning under £30,000.
The government is planning to consult on the future of the Warm Home Discount after 2026 later this year.
Chris Norbury, chief executive at E.ON UK, said: “Millions of households are still struggling with unaffordable energy bills, and the current approach isn’t reaching those who need help the most. It’s vital we find a fair and lasting solution that recognises affordability as a long-term challenge, not a short-term crisis.
“A more targeted approach to supporting low-income and vulnerable households, funded appropriately across government and industry, would go a long way toward delivering the enduring change needed to lift people out of fuel poverty and make energy genuinely affordable in the future.”
A government spokesperson said: “We are helping over six million households this winter by expanding the £150 Warm Home Discount and working with Ofgem on a debt relief scheme to bring down bills for every home.
“The only way to bring down energy bills for good is with the government’s clean energy superpower mission, which will get the UK off the rollercoaster of fossil fuel prices and onto clean, homegrown power that we control.”
