The latest financial statement from the Chancellor failed to meet in full any of the recommendations set out by the End Fuel Poverty Coalition in its budget submission.
While the energy firms Windfall Tax and the Household Support Fund were both extended for limited periods, other support measures end on the 31 March.
The budget also contained no new funding for energy efficiency support.
A spokesperson for the End Fuel Poverty Coalition commented:
“What we needed from the Chancellor was a long term plan for warm homes and cheaper energy, but instead the government has condemned families to another winter in cold homes and has failed to fund reform to Britain’s broken energy system.
“The government is pulling the plug on support for households in fuel poverty. The Energy Price Guarantee and the cost of living payments now join the Energy Bills Support Scheme on a bonfire of policies that were helping people with surging energy bills. The Household Support Fund will be extended, but only for another 6 months – ending before next winter sets in.
“But as this support is axed, the price households pay for their energy is still 60% higher than in 2021 and levels of energy debt are soaring. Meanwhile the wider cost of living crisis means people simply can’t afford to keep the lights on.
“While the extension of the Windfall Tax is a recognition that the energy crisis is not over, economists estimate that it has actually shaved £18bn off the cost of extracting fossil fuels over next three years by increasing energy firms’ tax relief allowances. This loophole must be closed.”
Jonathan Bean, from Fuel Poverty Action added:
“Removing the loopholes in windfall taxes on huge energy firm profits would fund essential energy for all.“
Warm This Winter spokesperson Fiona Waters said:
“Today’s budget is a waste of energy that will still leave millions out in the cold.
“There’s some cold comfort in the extension of the Housing Support Fund but it will barely make a dent in the huge debt ordinary people have now built up as they struggle to pay sky high bills that are still 60% more than three years ago.
“Families, pensioners, children and the poor are freezing as energy companies make a billion pounds in profit each and every week.”
Will Walker from Warm This Winter campaign members Ashden, commented on X that the budget was “barren” and that:
“Unfortunately, what we’ve seen over the last decade from Government is dither, delay and division on net zero. This has undermined business and investor confidence, weakened supply chains and added to UK energy bills.”
Joanna Elson CBE, chief executive of Independent Age, said:
“Today’s Budget was a missed opportunity to help those in later life already living in financial hardship and address the incoming pensioner poverty surge. Cutting National Insurance won’t help the more than 2 million older people living in poverty, or the many more living with precarious finances struggling to make ends meet. Transformative change is needed to improve their lives.
“While the lower energy price cap and the increased State Pension are welcome, there is still a long way to go for older people in financial insecurity to be able to afford even the basics. Bills are still astronomically high, and our helpline hears daily from older people rationing themselves to just one meal a day and washing in cold water to save energy.
“The cost-of-living payments have ended and older people in financial hardship are already at breaking point. While the temporary extension of the Household Support Fund is welcome, long-term solutions are needed to protect them from high household costs. The UK Government needs to introduce a single energy social tariff and water social tariff. This would help shield people of all ages living on a low income, including older people, from high and unmanageable costs.
“Today, the UK Government reiterated its commitment to uprate Pension Credit, but it must now implement a strategic and targeted plan to get this money into eligible pockets. As the latest figures show that up to 880,000 households missed out, an uptake strategy is urgently needed to target those who need financial support but aren’t aware it exists or don’t know they are eligible.
“Pensioner poverty has been steadily rising since 2012. Sadly, nothing announced today will reverse this alarming trend. That’s why we need a cross-party review to establish an adequate minimum level of income needed to avoid poverty in later life. Until that happens, we risk seeing more older people fall into financial hardship.”
Image credit: Warm This Winter / © Jess Hurd