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Ofgem price cap increase to coincide with predicted rise in child fuel poverty to over 2.5m households

End Fuel Poverty Coalition calculations predict more than 2.5 million households with children will be in fuel poverty from 1 April 2022, when the next Ofgem price cap increase takes effect.

A newspaper on a kitchen table beside a model of energy bills and the price cap

End Fuel Poverty Coalition calculations predict that more than 2.5 million households with children in the UK will be in fuel poverty from 1 April 2022, the date the next Ofgem price cap increase comes into force1. The figures were first reported by Sky News and published by the Coalition on 1 April 20221.

The Coalition says the number of children in fuel poverty will have doubled since 20191. As a share of all households with children, fuel poverty rises from 19.4% in 2019 to an estimated 38.6% after the price cap increase on 1 April 20221.

The predicted rates differ sharply by household type1:

Household typePredicted fuel poverty rate from 1 April 2022Households
Lone-parent households55.7%855,938
Couples with dependent children33.4%1.69m

The Coalition said the figures exceed its previous calculations1.

"The stark reality of life under the Government's energy bill crisis is clear to see. Among the worst affected will be the most vulnerable, including children."
End Fuel Poverty Coalition spokesperson, source1

The Coalition also said the measures already announced by the Government "hardly scratch the surface of the support needed", and called for a full package of measures for those in fuel poverty alongside work to improve the energy efficiency of buildings and move the country to a secure, sustainable, non-fossil fuel based energy supply1.

Dan Paskins, Director of UK Impact at Save the Children, said it was "deeply worrying" that the number of families in fuel poverty was set to double that spring, and that a child in a single parent family was more likely to experience fuel poverty than not1. He said the best way of supporting families through the crisis was making sure benefits keep up with rising costs, which he said were on track for a real terms cut1.

The Coalition cites a Public Health England report linking cold homes and poor housing conditions to a range of health problems in children, and a Childhood Trust report finding indirect impacts including lower rates of educational attainment and strain on young people's mental health1. It also cites the British Medical Journal, which reported that children growing up in cold, damp and mouldy homes have higher than average rates of respiratory infections and asthma, chronic ill health and disability, and are more likely to experience depression, anxiety and slower physical growth and cognitive development1.

Why it matters for households

Fuel poverty is measured against income and required energy spending, so a household can be pushed into it by a price cap rise alone, without any change in how much energy it uses. For a home with children, the predicted shift is from roughly one in five households in 2019 to close to two in five from 1 April 20221. For lone-parent households, the prediction is that more than half will be in fuel poverty1. The Coalition's cited health evidence links cold and damp homes to respiratory illness, mental health strain and slower development in children1. Energy independence for these households is constrained by the same two factors the Coalition names: the energy efficiency of the building, which sets how much heat is needed, and the cost of the supply that fills that need1. The Coalition says the measures announced so far fall short of what it considers necessary1. No figure for the total cost of the support package, and no assessment of how many households it would reach, has been reported1.

What happens next

The Ofgem price cap increase takes effect on 1 April 20221. The Coalition's figures describe conditions from that date1. Its stated asks are a full package of measures to help those in fuel poverty now, urgent work to improve the energy efficiency of buildings, and a move to a secure, sustainable, non-fossil fuel based energy supply1. Save the Children's stated ask is that benefits increase in line with inflation1. No timetable for either has been reported1.

Sources1 cited
  1. Children set to suffer as energy bills rocket - End Fuel Poverty Coalition, endfuelpoverty.org.uk