A concerning report by think tank Resolution Foundation highlights that over one in three households in England, around 35%, will be grappling with higher energy bills this winter compared to
last year. Disturbingly, the impact of these escalating costs will disproportionately affect England's poorest households, as nearly half of them are projected to experience even higher energy expenses. This alarming trend emerges at a time when the government's focus on providing targeted assistance for energy bill payments has waned.
The think tank has criticized the government for its perceived lack of action to address the challenges posed by rising energy costs. Furthermore, it has pointed out that initiatives to encourage home insulation and establish a comprehensive energy policy have fallen short.
According to the Resolution Foundation, the Cost of Living payments extended to struggling households this year do not adequately address the financial burdens they currently face. The think tank underscores the multitude of economic pressures, including rent hikes and food price inflation, that households are contending with.
A Senior Economist at Resolution Foundation expressed concern about the cumulative effect of energy bill increases, given the backdrop of soaring food and housing expenses. While acknowledging that government support has become more targeted during the crisis, the think tank urges immediate action to bridge the remaining gaps, particularly for the most vulnerable individuals facing challenging times ahead.
Citizens Advice has also sounded an alarm, warning that from October 1, a staggering 6.3 million UK households could potentially fall into Fuel Poverty due to surging energy debt rates. Matt Upton from Citizens Advice emphasized that unless the government intervenes with additional support, the upcoming winter could be as challenging, if not more so, than the previous one.
The charity reported a 17% increase in the number of individuals seeking advice for energy debt during the first half of 2023 compared to the same period last year. This marks a substantial uptick of one-third since 2019.
For the estimated 7.2 million households in England set to endure higher energy bills this winter, with the most vulnerable families bearing the brunt, the absence of the energy bill support scheme since 2022 will be acutely felt. Photo by PPP, Wikimedia commons.