More than 465,000 households in the UK face “fuel poverty” this winter due to the January increase in the energy price cap, figures show.
Data science firm Outra revealed that the price cap increase on January 1 led to a 12.2 percent rise in households affected by fuel poverty, compared to October 2023.
A household is deemed to be in fuel poverty when they spend more than 10 percent of their income on heating.
The UK now has 4.29 million households experiencing fuel poverty, up from 3.83 million, the research found.
Peter Jackson, chief data and technology officer at Outra, said: “While fuel prices have dropped from their peak, financial pain felt by those struggling with a sharp rise in household bills is far from over.
“With this five percent rise in energy costs for the average household and the coldest weeks of winter potentially still ahead of us, many will need to make sacrifices if they have any hope of making ends meet.”
Birmingham has the largest number of new UK households entering fuel poverty with an extra 19,000, followed by South Yorkshire with 17,200 more, Newcastle with another 12,100, and Glasgow with an 11,900 increase.
The increase in the price cap at the start of January has led to an average increase of £94 a year on energy bills, from £1,834 to £1,928.
Outra said these figures indicate that while inflation has eased, the cost-of-living crisis is still dominating the lives of British households.
The data scienctist also found self-defined “high risk” households are more likely to fall into fuel poverty.
The new energy rates are set to cause 383,000 “high-risk” households to become fuel impoverished – an increase of 61,000 or 19 percent more than the number reported in October 2023.
Between October 2023 and January 2024, these households will face an average increase of 6.68 percent to their energy bills.
This hike is likely to push a significant number of households into fuel poverty, given their current financial struggles.
Outra said housing costs will continue to be a “significant burden” for people as increases in mortgage payments and rent have put increased pressure on people’s finances.
A Resolution Foundation report said 38 percent of people have reported a worsening financial situation, which is more than twice the number of those who reported an improving one, at 15 percent.
The report said that an increase in benefits and wages may help some people, but those who have not benefited from the rise may be suffering “disproportionately”.
The Foundation predicts that by October 2023, “severe levels” of food insecurity levels may affect a fifth of people, this is almost three times the number of people affected before the pandemic.
What support is available to help with energy bills?
Energy debt support schemes
Many suppliers have debt support schemes offering grants and other help to those who have got into energy debt.
The British Gas Energy Trust offers grants to eligible people regardless of which supplier they are with.
Benefits
It’s worth checking if you are missing out on any benefits that can increase your household income and so help towards energy bills.
You can use a benefits calculator such as the one on the Turn2us website to check what benefits you are eligible for.
People on certain benefits also get Cold Weather Payments, a £25 payment that goes out during periods of cold weather. The scheme has been replaced in Scotland by the Winter Heating Payment, a one-off payment of £55.05 regardless of the weather.
Demand Flexibility Service
People who take part in this scheme are paid to reduce their energy usage during peak hours. They receive the payments in cash, vouchers or other means.
Check with your energy supplier to see if they are taking part in the scheme.
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