Millions of households across England, Scotland and Wales are facing higher energy bills this winter, after Ofgem’s latest price cap increase came into effect on Wednesday. The 2% rise means a typical household will pay £1,755 a year – around £35 more. Those on fixed deals are unaffected.
Suppliers and campaigners warn many families will struggle, with energy debt reaching a record £4.4bn. More than a million households currently have no repayment plan in place. Energy UK has urged the government to create “enduring” targeted support, warning current measures fall short.
While some suppliers offer help, such as emergency vouchers or debt write-offs, support varies widely. Ofgem is exploring a debt relief support scheme to write off unpayable arrears or match repayments, but funding would likely come from bills or taxation.
The government says it is taking “urgent action” and highlights the Warm Home Discount, which cuts £150 from bills for one in five households. Ministers have also pledged a large-scale home improvement programme to upgrade five million homes and long-term investment in domestic energy.
Energy UK argues that lasting support should be based on income, health and energy usage, and tied to reach those in greatest need. A report from the trade body suggests that spending £1.5bn a year could eliminate the fuel poverty gap, saving affected households around £400 annually.
Pensioners on incomes of £35,000 or less will also receive winter fuel payments after a government U-turn.
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