“Over 7m UK households to pay more for energy this winter”

Rising daily charges and no repeat of last year’s £400 energy support will hit the poorest homes hardest, according to a new report

More than a third of households in England, equivalent to around 7.2 million homes, are expected to see an increase in their energy bills this upcoming winter compared to the previous year.

This includes almost half of the poorest families, according to recent research by the Resolution Foundation.

The study, titled “Gotta Get Through This,” delves into the projected energy costs that households will face this winter.

This comes just before the anticipated energy price cap announcement for the fourth quarter of 2023 by Ofgem, set to be revealed this Friday.

The anticipated announcement by Ofgem could bring a drop in the energy price cap starting from October.

This would translate to a decrease in average annual energy bills, dropping from £2,100 last winter (2022-23) to roughly £1,925 for this winter (2023-24).

This reduction is largely attributed to the falling wholesale gas prices.

Despite the decrease in the cost per energy unit, it is expected to be outweighed by an increase in the daily standing charge.

Furthermore, the absence of last winter’s universal £400 energy support payment further diminishes the projected savings, the Resolution Foundation suggests.

Almost half (47%) of households in the lowest income bracket are among those set to grapple with these challenges, according to the report.

According to the Foundation’s analysis, households using less than 79% of the average gas and electricity consumption can expect increased bills this winter.

This situation applies to 35% of households in England, according to the research.

Jonathan Marshall, Senior Economist at the Resolution Foundation, said: “With these energy bill increases coming on top of a prolonged period of fast-rising food and housing costs, the cost of living squeeze is far from over.

“And, although government schemes have improved their targeting of support throughout the crisis to those most in need, significant gaps remain which should be urgently addressed to help the most vulnerable get through the challenging months ahead.”

Make sure you check out the latest Net Hero Podcast episode:

Latest Podcast