The Government has announced a cut in the support available to households in fuel poverty next winter, according to the End Fuel Poverty Coalition1. The announcement covers the 2023/24 financial year, and comes as all energy bills are set to increase from 1 April 2023, at the same time as the Energy Bills Support Scheme finishes1.
The coalition reports that the most vulnerable households received support of up to £1,500 in 2022/23, and that this figure reduces to £1,350 for 2023/24, a cut of 10 per cent1. It attributes the 2023/24 figure to media reports rather than a published government statement1. The final increase in bills will depend on energy prices, which have fallen in recent months, but predictions currently range from 12 per cent to 20 per cent1. The Energy Price Guarantee caps the unit cost of energy rather than the total bill, and the coalition notes that many more vulnerable households pay significantly more than the stated average1. The average household bill in winter 2021/22 was £1,277, meaning the average household will be paying £1,523 to £1,723 more by winter 2023/241.
The coalition sets out the support it expects in 2023/24 against what was offered in 2022/231:
| Support | 2022/23 | 2023/24 |
|---|---|---|
| Average household bill through Energy Price Guarantee | £2,500 | £3,000 |
| Energy Bill Support Scheme | £400 to all households | No plans to extend scheme |
| Cost-of-living payment for means-tested benefit claimants | £650, split into two payments | £900 to 8m households, in four instalments through to Spring 2024 |
| Payments for people with disabilities | £150 | £150 for more than six million people |
| Payments for pensioners | Up to £300 | £300 for over eight million pensioners, on top of Winter Fuel Payments |
The coalition states that support in 2023/24 for households not on means-tested benefits, and for those living in off gas grid properties, has yet to be confirmed by the Government1. It also notes additional increases in energy costs that many Economy 7 customers saw on their bills from 1 January 20231.
A spokesperson for the End Fuel Poverty Coalition said:
"In short, bills are going up, support is going down and households will be worse off than they were this winter."
The coalition also said that this winter it has seen over 9m adults living in cold damp homes, and that while it supports prioritising support for those who need it most, the Government must go further to help the millions of homes in fuel poverty throughout 2023. It said this means more financial support, but also non-financial measures such as banning the forced transfer of households onto more expensive pre-payment meters1.
Why it matters for households
For a household already in fuel poverty, the practical effect is a smaller payment against a larger bill. The Energy Price Guarantee limits what each unit of gas and electricity costs, not what a home pays in total, so a household using more energy than the average will pay more than the £3,000 figure in the table1. The end of the £400 Energy Bill Support Scheme removes a payment that went to all households, not only those on means-tested benefits1. How fuel poverty is defined and measured differs between the nations of the UK, which affects which households are counted and which support they are eligible for; this is set out in the site's guide to fuel poverty policy. Households with a medical need for warmth, and the support available to them, are covered in the guide to vulnerable and medically dependent households. The difference between the two main winter payments is explained in Warm Home Discount vs Winter Fuel Payment, and eligibility for the latter in who qualifies for the Winter Fuel Payment. Schemes that fund physical improvements to a home, rather than bill support, sit under grants and schemes, including ECO4.
What happens next
Bills increase from 1 April 2023, when the Energy Bills Support Scheme finishes1. The £900 payment to households on means-tested benefits is to be made in four instalments through to Spring 20241. The Government has not confirmed support for households not on means-tested benefits or for off gas grid properties for 2023/241.
Sources1 cited
- Government announce cut in financial support next winter - End Fuel Poverty Coalition, endfuelpoverty.org.uk