Citizens Advice published its Winter Warning report on 24 August 2023, setting out the case for targeted help with energy bills over the coming winter. The charity said falling prices should not be read as the end of the affordability crisis, and that its data suggests millions of households are facing a winter as bad as, or worse than, the last one1.
The report states that the current price cap remains 60 per cent higher than in winter 2021, and that once the removal of direct government support is taken into account, the amount the average household actually pays for its energy this winter will be roughly the same, or even more, than last winter1. It reports that in the first six months of 2023, 7.8 million people had to borrow money to cover their energy bills, and that 1.2 million children live in households that have had to go without heating, hot water and electricity. Citizens Advice said it expects those numbers to rise this winter if the government does not step in1.
"In this report, we set out the case for targeted energy bill support over the coming winter."
The report notes that options for introducing meaningful assistance in the time remaining are limited, and so focuses on the case for expanding the Warm Home Discount mechanism1. The Warm Home Discount is a rebate applied to the electricity bills of eligible households, and it sits alongside other forms of support such as the Winter Fuel Payment. The report does not set out a new eligibility threshold or a costed expansion in the text published on the page; those details have not been reported here.
The publication page carries a note that an amended version of the report was published to correct the total cost of the Energy Price Guarantee on page 271. The page itself is dated 24 August 20231. The two dates relate to different versions of the same document.
| Figure cited by Citizens Advice | Value |
|---|---|
| Price cap level compared with winter 2021 | 60% higher |
| People who borrowed to cover energy bills, first half of 2023 | 7.8 million |
| Children in households going without heating, hot water and electricity | 1.2 million |
Why it matters for households
The report's central claim is that headline price falls do not translate into lower bills for the average household once direct government support is withdrawn. For a household, that means the amount leaving the bank account each month may not fall even as the unit rates quoted in the price cap do. The price cap sets the maximum a supplier can charge for units and standing charges on a default tariff, not the total bill, so usage still drives the amount paid.
The borrowing and self-disconnection figures point to households absorbing higher costs through debt or by going without energy rather than through reduced consumption alone. For energy independence at home, the practical effect is that a household's ability to keep the lights on and the heating running depends increasingly on its own buffer against price shocks, whether that is savings, debt arrangements with a supplier, or eligibility for a rebate scheme.
Citizens Advice is one of the energy consumer bodies that advise households on bills, complaints and supplier behaviour. Its argument that the Warm Home Discount should be expanded is a proposal, not a change in the scheme's rules; the current eligibility criteria and rebate level are unchanged by this report.
What happens next
The report calls for targeted support over the coming winter, but no government response, timetable or decision on expanding the Warm Home Discount is set out in the published material1. Whether the mechanism is expanded, and on what terms, has not been reported.
Sources1 cited
- Winter Warning: The urgent case for energy bill support this winter - Citizens Advice, citizensadvice.org.uk