The UK Government published new details on 3 January 2023 of cost of living payments to be made from spring 2023 to spring 20241. The announcement covers payments to low income households, and National Energy Action (NEA) responded with an estimate that over 1.5 million more households will still be pushed into fuel poverty because of the April increase in bills, taking the total to 8.4 million UK households1.
NEA set out who it expects to be affected within that total: 1.8 million carers, 5.9 million low-income and financially vulnerable households, 3.6 million people with a disability, and 1.6 million households in off-gas homes1. The charity also said it believes around 2.5 million low-income households will not receive any targeted help at all, particularly low-income, working age households not receiving means tested benefits1.
Adam Scorer, chief executive of NEA, said the payments would help in part and that knowing broadly when they will be paid would help households manage their outgoings1.
"The Government's targeted support won't be enough however to stop millions of vulnerable people sinking further into debt or being at risk of physical and mental harm, as they ration their energy to dangerous levels."
NEA also called for the UK Government to stop households on prepayment meters, or paying by cheque or cash, paying far more than direct debit customers1. The government's own announcement page is cited by NEA but its contents are not reproduced in the NEA article, so the individual payment amounts and eligibility rules have not been reported here1.
| Group identified by NEA | Households or people |
|---|---|
| Total in fuel poverty from April | 8.4 million UK households |
| Additional households pushed into fuel poverty by the April hike | over 1.5 million |
| Carers | 1.8 million |
| Low-income and financially vulnerable households | 5.9 million |
| People with a disability | 3.6 million |
| Off-gas homes | 1.6 million |
| Low-income households NEA believes get no targeted help | around 2.5 million |
Why it matters for households
The payments are targeted, which means eligibility is tied to receiving certain benefits or meeting other criteria rather than to the cost of heating a particular home. NEA's estimate that around 2.5 million low-income households fall outside the support points to a gap for working age households on modest earnings who do not receive means tested benefits1. For a household in that position, the payment does not change what the home costs to run.
The figures also show how the support interacts with the way a home is heated and paid for. NEA counts 1.6 million households in off-gas homes among those in fuel poverty from April, a group that often has fewer options for changing how it heats a home1. Its call on prepayment meters and cash or cheque payment methods concerns the gap between what those households pay and what direct debit customers pay for the same energy, which affects the value of any one-off payment1. Energy independence at household level depends on both the cost of the fuel and the method of paying for it, and the NEA response addresses both.
What happens next
The payments are due to go out from spring 2023 to spring 20241. NEA has called for a deeper form of price support that captures those most at risk of a cold home, and for action on the difference in cost between payment methods1. No further dates have been reported.