“Ofgem’s new price cap could push 6.3m UK homes deeper into fuel poverty”

Anticipated average annual energy bill of £1,925, prompt calls for increased government support and ongoing discussions about a social tariff strategy

Ofgem‘s new energy price cap might not be enough to prevent 6.3 million UK households from falling into fuel poverty.

National Energy Action (NEA)‘s calculations are grounded in Cornwall Insight‘s projection of a £1,925 annual cost for a standard energy bill starting from the 1st of October.

This figure remains approximately £700 higher than that of October 2021, when the energy crisis emerged, impacting 4.5 million UK households with fuel poverty.

With the absence of the £400 Energy Bills Support Scheme this winter, many households are expected to face energy bills similar to those of the previous year.

The charity emphasises that beyond immediate support for vulnerable households this winter, the UK Government must uphold its commitment to revamp energy consumer protection from April of the coming year.

This includes deliberating on a social tariff to assist low income and vulnerable households.

Chief Executive of NEA Adam Scorer, said: “For a third straight winter, vulnerable households will face stubbornly high bills and an increasing energy debt mountain. This winter there is no Price Guarantee and no £400 Energy Bills Support Scheme.

“The absence of targeted further financial support this winter to reduce the energy bills of the most vulnerable will mean millions of unheated homes and spiralling debt. It will add to the queues of people for the NHS and for the overstretched resources of charities like NEA.

“The UK Government can still act – by directly reducing energy bills via targeted energy discounts or a more targeted Energy Price Guarantee for low income and vulnerable households. It knows how to do it. It has millions of pounds unspent from previous schemes.”

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