Citizens Advice published a policy paper, Hitting the Rationing Wall, on 26 August 2026, setting out survey and casework evidence on how households are coping with energy costs and calling on the Government to act before winter1.
The paper states that prices have steadied but remain 43% higher in real terms than in 2021, and that half of the charity's debt clients are now living in a negative budget, meaning their income cannot cover their essential living costs1. The average debt client's monthly deficit has risen by 45% since 2022, from £276.02 to £388.921. The paper argues that households already using close to the minimum energy they need cannot cut further, so they absorb price rises by rationing food, rent and healthcare instead1.
The most common actions were using less heating and hot water (63%), reducing household energy use such as kitchen appliances, washing machines or turning off lights (47%), and reducing spending on food (33%)1.
Asked what they would do if prices rose again in the next year, 23% of households said they would turn off the heating or hot water, 31% said they would cut back on food spending and 20% said they would run down savings to pay for essentials1. Over a third, 37%, said they were worried about affording their energy this winter1.
The paper also notes that Ofgem's recent changes to the Typical Domestic Consumption Values reduce headline bill figures even though unit rates remain high1.
Citizens Advice made three recommendations to the Government1:
"Take further action to remove policy costs off of electricity bills by removing the remainder of the Renewable Obligations (RO) scheme and all of Feed-in-Tariff (FIT);"
"Urgently deliver the much delayed Debt Relief Scheme (DRS)."
| Measure | Households taking it in the past year |
|---|---|
| Using less heating and hot water | 63% |
| Reducing household energy use | 47% |
| Reducing spending on food | 33% |
| At least one action | 74% |
Why it matters for households
The paper describes energy as a rigid necessity with no like-for-like substitute, which means cuts fall on other essentials once energy use is already at a minimum1. For a household near that floor, the practical effect of a further price rise is not a lower bill but a wider deficit, and the charity's own debt clients now average a shortfall of £388.92 a month1. The three measures proposed would act on different parts of the bill: removing the remaining Renewable Obligation and Feed-in-Tariff costs from electricity unit rates, restructuring the Warm Home Discount around assessed energy need, and writing off arrears through the Debt Relief Scheme1. Each bears on how far a household can control its own costs without cutting consumption further, which is the point at which energy independence stops being a matter of choice. The policy costs and levies element is the one that applies to every electricity bill regardless of supplier, while the Debt Relief Scheme and the Warm Home Discount are targeted at households already in arrears or on low incomes. The survey findings sit alongside the wider work of energy consumer bodies in England, Scotland and Northern Ireland, where the support landscape differs.
What happens next
The paper says the Government has a limited period to get support to households ahead of this winter, and that acting now would lower the cost of electricity for everyone while protecting those most at risk1. No timetable for the three measures, and no Government response to the paper, has been reported.
Sources1 cited
- Hitting the Rationing Wall - Citizens Advice, citizensadvice.org.uk