Matthew Cole, head of the Fuel Bank Foundation, told the Energy Security and Net Zero (ESNZ) Select Committee on 6 September 2023 that the UK is heading for another winter fuel crisis without further energy bill support from government1. He was giving evidence at the committee's inquiry on preparing for the winter1.
Cole called on the Government to provide further financial support targeted at low-income households and those with high energy costs or usage1. He said energy bills remain double what they were before the global energy crisis, despite Ofgem's reduction to the energy price cap for the last quarter of 2023, covering 1 October to 31 December1. The cap was set at £1,923 for the average dual fuel household paying by direct debit and £1,949 for prepayment meter customers1.
Cole said many people are still paying off debt accrued from last year, and warned of the consequences of further high bills this winter1:
"Many people are also still paying off debt accrued from last year. Throw in further high energy bills this winter and the results for millions of households already in fuel crisis could be catastrophic."
He urged the Government to repeat the Energy Bill Support Scheme (EBSS) but restrict it to specific vulnerable groups, including disabled people, low-income households and homes with higher heating costs1. He said payments should match need rather than being split equally each month, noting energy usage is higher in January than in October1. He also said the logistics of payments, particularly for prepayment meter customers, needed addressing, with millions of such customers missing out last time, and that credit should ideally be applied automatically to the meter rather than requiring the customer to act1.
Cole said some energy suppliers have improved customer service but that standards need raising across the industry, particularly on being proactive with vulnerable customers1. He said suppliers should review customer circumstances and behaviour themselves rather than relying on the customer to make contact, and that customers should be able to reach their supplier easily through a suitable channel and get practical, actionable advice1.
Why it matters for households
The price cap sets the maximum a supplier can charge per unit of gas and electricity on a default tariff, so a lower cap does not by itself mean a lower bill: a household that uses more energy pays more, and the figures quoted are for an average user1. For homes on prepayment meters, the cap level was set higher than for direct debit customers1. Cole's evidence points to two practical issues for household energy independence: whether support reaches the homes that need it, and whether prepayment customers can access credit without having to claim it themselves1. Households in dispute with a supplier over billing, service or complaints and redress sit within the framework overseen by Ofgem, the regulator whose cap decision Cole referenced1.
What happens next
The Fuel Bank Foundation's account does not report any government response to Cole's call for a further targeted support scheme, nor any timetable for one1. No date has been reported for the committee's findings or for any further evidence sessions1.
Sources1 cited
- Fuel Bank charity boss warns MPs of impending winter fuel crisis | Fuel Bank Foundation, fuelbankfoundation.org