Fuel Poverty: rising risks and the need for targeted energy support

The latest crisis in the Gulf arrives with many in the UK still struggling with the after effects of the previous energy shock in 2022. New analysis shows that the UK’s fuel-poverty crisis is deepening again, with millions of households facing unaffordable energy bills despite the easing of wholesale prices. Public First’s research estimates that 6.1 million households are now in fuel poverty, and that the average fuel‑poverty gap has nearly doubled since 2020, rising to more than £400 a year—a clear indication that existing support is no longer keeping pace with need. With energy bills still around £700 higher than in 2021, households on low incomes, disabled people and older residents remain disproportionately affected. The current Warm Home Discount reaches only a fraction of those who need it; around 2.5 million fuel‑poor households miss out entirely, including many who are low‑income, disabled or older. Public First warns that without reform—particularly with the scheme due to expire in April 2026—millions could face a support cliff-edge just as colder weather returns.

The Government has recently announced over £50 million in new funding to help households reliant on heating oil, a group experiencing some of the steepest rises in energy costs. While this is a welcome intervention, sector analysis suggests it is far from sufficient to close the widening affordability gap and energy challenges in general are likely to impact on future service demands for charities. Overall, the evidence points to a need for a long-term, targeted support model—one that reflects the higher energy needs of vulnerable groups and aligns help with income, rather than relying on schemes that exclude millions who are struggling most.

Find out more about closing the fuel poverty gap.

If you have any questions, then please feel free to get in touch with Michaela Johns on 023 8046 1256 or email Michaela Johns.