Energy warning issued ahead of latest price cap announcement

More than three million pensioner households are in fuel poverty, according to new analysis. The total number of households in the UK spending more than 10% of their income on energy has reached 12.1 million, the research by the University of York found.

Older people are among the hardest hit with 3.2 million pensioner households in fuel poverty, including almost 964,000 in deep fuel poverty meaning they spend 20% of their income heating their homes. Campaigners warned that people cannot take any more price rises ahead of a further hike expected when regulator Ofgem announces the latest cap on Wednesday.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said: "Fuel poverty is very much still with us and these figures highlight how vital schemes like the Warm Home Discount are to help those struggling each year.

"But we are now approaching the fifth winter of the energy bills crisis and the time for tinkering with the price cap is over.

"The average household is still paying 67% more for their energy than in winter 2020/21.

"Ofgem is right to launch a comprehensive review of how energy system costs are allocated, but simply shifting budgets between standing charges and unit rates will not solve the problem.

"We also need to realise that the North Sea is now in terminal decline and unable to meet the UK's long-term heating needs. This means we must urgently plan to cut our dependence on gas and bring down the cost of electricity.

"Failure to act will lead to even greater reliance on gas imports, reduced energy security and increased energy bills."

Renters and people with children are also hardest hit, along with OAPs.

Jonathan Bradshaw, Emeritus Professor of Social Policy and Social Work at the University of York, added: "Official statistics on fuel poverty don't show the full picture of suffering caused by high energy bills.

"Our research uses benchmark official figures on living standards along with energy tariff data and statistical models to estimate the impact of energy costs on the population as a whole and on different groups of people.

"While the data shows a slight reduction in the numbers of households struggling compared to 2022/23, it is clear that fuel poverty is still with us."

The latest energy price cap will come into force in October and cover until the end of December.

A Department for Energy Security and Net Zero spokesperson said: "The only way to bring down energy bills for good is with the government's clean energy superpower mission, which will get the UK off the rollercoaster of fossil fuel prices and onto clean, homegrown power that we control.

"We are helping over six million households this winter by expanding the £150 Warm Home Discount and working with Ofgem on a debt relief scheme to bring down bills for every home."