Around 6.5 million households will still be in fuel poverty when the new price cap will come into place.

As Ofgem prepares to unveil the new price cap level on 25th May, which will be implemented from 1st July, important issues surrounding fuel poverty persist, according to National Energy Action (NEA).

NEA’s research team estimates that nearly 6.5 million households will still be in fuel poverty, even with the new cap (previously reported at 7.5 million households).

This figure indicates a significant increase of two million households facing fuel poverty since October 2021, when bills were roughly half the current level at £1,271 annually.

The withdrawal of government support has further compounded the situation, with bills in July expected to be similar to last winter’s rates, according to the report.

Adam Scorer, the Chief Executive Officer of NEA, acknowledges that while any relief from record-high prices may be welcomed, prices are still over 80% higher than before the energy crisis, leaving an additional two million households trapped in fuel poverty.

Scorer has emphasized that more than 2.5 million low income and vulnerable households no longer receive any government assistance for unaffordable energy bills, underscoring the ongoing nature of the energy crisis for these individuals.