Ministers are under pressure to roll out fresh emergency help on energy bills amid warnings that millions of households could be plunged back into crisis.
Campaigners say families are still reeling from the last surge in costs and now face a renewed threat as volatile global gas and oil prices push bills higher again. Energy bills are due to come down by the equivalent of £117 a year under government changes to the price cap from April 1, however increases are expected from July through to the winter.
The End Fuel Poverty Coalition has written to the Government urging it to prepare an emergency support package, warning that without action, as many as 13 million households could soon be spending more than 10% of their income on energy.
Of those, around 5 million may be forced to spend more than 20%, a level widely seen as severe fuel poverty.
Some households are already feeling the squeeze. Those not connected to the gas grid are among the hardest hit, with heating oil users reporting refill costs have doubled in recent weeks, while LPG and heat network customers also face steep increases.
In a letter to ministers, the Coalition set out a series of urgent measures, including:
- Immediate support for households relying on heating oil, LPG and other off-grid fuels
- Preparations for targeted bill reductions if the price cap jumps this summer
- Expanded winter support through a stronger Warm Home Discount and Cold Weather Payments
- Faster rollout of a national energy debt relief scheme
- A scalable support system that can be switched on quickly if prices surge again
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “Millions of households are still recovering from the last energy crisis, with record levels of energy debt and many already struggling to afford their bills.
“The risk is that we see another wave of fuel poverty driven by the oil and gas price crisis caused by Trump’s war in the Middle East. This is history repeating itself and rather than making snap decisions, the Government should establish an emergency support framework now, so households know what support can be expected.
“Reducing energy price spikes benefits the whole country. It helps limit inflation, reduces pressure on household finances, prevents worsening fuel poverty and cuts the health impacts associated with cold homes.
“This support should be funded fairly. Energy companies and other parts of the energy industry make huge profits during periods of price volatility, so it is only right that windfall taxes and excess profits are used to help protect households from another energy price shock.”
Other groups echoed the call for swift action, warning that vulnerable households – particularly pensioners and those on low incomes – are already at breaking point.
Maria Booker, Head of Policy at Fair By Design, said: “The Government must use the next two and a half months to design an emergency support package that is both effective and fair. Support should be carefully targeted towards those who need it most and funded in an equitable way.
“This shock is yet another reminder of why the Government must accelerate progress on data-matching capabilities so that support can be better targeted. Ultimately, reducing our reliance on fossil fuels and transitioning to clean power generated here in the UK, will mean we are not at the mercy of global energy shocks like this in future.”
Robert Palmer, Deputy Director at Uplift, warned households could face a wider financial hit, saying: “Everyone in the UK is going to pay the price if this reckless conflict continues via a ‘Trump War Tax’ that could add thousands of pounds to people’s bills.
“We risk seeing higher energy bills, more expensive petrol, pricier mortgages and bigger food bills. It’s good to see some immediate support from the government on heating oil and it’s crucial that the government provides further support if it’s needed on bills.
“The UK must also plan for the long term. What we need is to ramp up the shift to renewable power so we have cheaper energy, secure supply and a cleaner environment. Oil and gas profiteers, who stand to make billions out of the Iran crisis, should pay their share of any financial help.”
Charities say older people are particularly exposed. Morgan Vine, Director of Policy and Influencing at Independent Age, said: “It is clear that support is needed for older people in financial hardship who are understandably anxious about what the fuel crisis could mean for them.
“With over half of older people on a low income already finding it a struggle to keep up with their energy bills, many are already making tough choices, not turning the lights on at night, heating only one room even in the depths of winter, or washing in cold water.
“Older people on low incomes can’t afford to absorb any more costs; they’re already at breaking point. The UK Government must take comprehensive action now to protect everyone on a low income from sky-high energy prices.”
Meanwhile, campaigners argue structural problems in the energy market are pushing bills higher.
Jonathan Bean of Fuel Poverty Action said: “Any emergency support must recognise that electric-only homes face much higher unit prices than oil and gas households due to our rigged energy market. The Government must urgently break the link between gas and electricity which allows firms to inflate the price of cheap renewable energy.
Experts also point to additional pressures embedded in bills, including so-called ‘hidden costs’.
Susie Elks, Senior Policy Advisor at E3G, said: “They must lower the cost of ‘hidden taxes’ on bills, which add £11bn to households and business energy bills. They must solve the energy debt crisis, which is adding £50-£70 to every household’s bill.
“They must find a way for us to modernise our energy networks, which have been chronically underinvested in, whilst managing the costs to households.”
The Coalition insists its proposals would sit alongside longer-term plans to cut bills permanently through improved energy efficiency and a shift away from fossil fuels.