Energy Bills Archives - End Fuel Poverty Coalition

Energy industry profits hit half a trillion pounds while bills rise

Energy giants have pocketed over £500 billion in profits since the energy crisis started according to an updated analysis of company reports. [1]

Researchers working for the End Fuel Poverty Coalition examined the declared profits of firms ranging from energy producers (such as Equinor and Shell) through to the firms that control our energy grid (such as National Grid and UK Power Networks) as well as suppliers (such as British Gas).

As energy prices increase by 6.4% this week for households across the country, the analysis shows that almost half of the total profits since 2020 (£207bn) are generated by firms with extensive involvement in the gas industry.

The cost of every unit of gas used will surge by over 10% from 1 April, meaning the cost of gas is now double what it was in winter 2020/21. The cost of gas not only affects households’ ability to keep warm, but also sets electricity prices up to 40% of the time under energy market rules.

Also profiting are the firms and business units responsible for electricity and gas transmission and distribution. These are the “network costs” consumers pay for maintaining the pipes and wires of the energy system and are usually paid for through standing charges on energy bills.

But earlier this year, Citizens Advice found that these firms had made an estimated £4bn in extra profits after a “misjudgement” by regulator Ofgem. Previous research also found that the same firms underspent on vital grid improvements by almost £1bn.

A spokesperson for the End Fuel Poverty Coalition, commented:

“As energy prices remain at levels way above the 2020 benchmark, the energy industry is taking us for April fools. We need politicians and regulators to act to bring down energy bills now.

“This means radical reform of the electricity pricing markets, investment in homegrown renewables and taking on the vested interests of an energy industry which makes billions of pounds of profits every year at consumers’ expense.

“In addition, we need to see steps taken immediately to help households reduce energy consumption in a safe way, by improving energy efficiency of buildings. This is why MPs need to push the Chancellor to commit the full £13.2bn funding needed for the Warm Homes Plan through the Comprehensive Spending Review.”

Maria Carvalho, from Medact which represents frontline health workers, commented:

“The record-breaking profits of energy giants come at an unbearable cost to public health.

“Cold homes cause illness and drive patients into already overwhelmed NHS services, while energy debt traps families in a cycle of financial and mental distress.

“Every pound pocketed by these corporations is a pound that could have kept someone warm, well, and out of hospital. The government must act now to rein in energy profiteering and invest in a fair, sustainable energy system that protects health rather than harming it.”

Jonathan Bean from Fuel Poverty Action added:

“Without radical reforms, millions of us will continue to suffer and die in energy starvation due to inflated energy pricing. We are not getting the benefit of our increasing supply of cheap renewable energy.”

Warm This Winter spokesperson Caroline Simpson said:

“Frankly this is shameful. Whilst the whole of the UK struggles with ‘Awful April’ these energy profiteers are celebrating ‘Awesome April’ with their latest results showing they made over half a trillion pounds in profits since 2020.

“It’s incomprehensible in so many ways and plain wrong that a mere 20 companies have made so much money out of people’s misery. The industry can spare a few of their many billions to bring down bills, pay for energy efficient homes and switch from oil and gas to save the planet.

“Now more than ever, we need to give everyone in the UK the peace of mind that comes with having energy security from homegrown solar and wind so we’re not at the mercy of either profiteering oil and gas companies or hostile countries.”

ENDS

[1] The data was compiled from publicly available accounts and financial statements, using the best available measure of company profits. These measures differ from company to company due to reporting processes and regulatory requirements in different jurisdictions. In determining which measure of profitability to use, the research has prioritised the measure preferred in the company’s own accounts.

Full information available at: https://www.endfuelpoverty.org.uk/news/energy-firm-profits-tracker/ Data as at 21 March 2024.

The data was compiled by freelance business journalist David Craik. David’s experience has included writing business and city news and features for national newspapers and magazines such as The Daily Mirror, Sunday Times, Wall Street Journal, Scotsman and Daily Express. Much of his content focuses on company financial results and reports in the energy sector and on personal finance issues including wealth management, property, investing and managing household budgets and bills. If any firm wishes to correct the record, please email info@endfuelpoverty.org.uk.

English fuel poverty figures highlight failure to tackle energy bills crisis

The Government has published the latest English fuel poverty figures for 2024 [pdf].

It shows that in 2024, there were an estimated 11.0% of households (2.73 million) in fuel poverty in England under the Low Income Low Energy Efficiency (LILEE) metric.

This is a slight reduction from 11.4% (2.80 million households) in 2023, although among households where the oldest resident is aged over 75, there has been a slight increase in the numbers in fuel poverty (10.1% in 2024 up from 9.7%).

The average fuel poverty gap for England in 2024 (the reduction in energy costs needed for a household to not be in fuel poverty) was estimated at £407, down by 4% in real terms since 2023.

But the data also shows that the number of households who are required to spend more than 10 per cent of their income (after housing costs) on domestic energy. In 2024, 36.3 per cent of households (8.99 million) exceeded this threshold, up from 35.5 per cent in 2023 (8.73 million).

Jonathan Bean from Fuel Poverty Action, commented:

“The latest Government fuel poverty statistics expose the complete failure of Government and Ofgem to tackle the energy affordability and fuel poverty crisis.

“A shocking 36.3% of households in England are unable to afford the inflated energy prices we are forced to pay due to a rigged energy market and obscene profits. Many of us are forced to survive the winter huddled under blankets and go without hot water.

“The Government tries to hide the extent of fuel poverty by excluding the millions of us on low incomes struggling with high energy prices based on an often flawed EPC rating. But even using its own distorted figures, the Government has failed to address fuel poverty, and is expecting it to actually rise next year.”

The figures show significant revisions not only based on previous projections, but also fundamentally change previously published 2023 data. For example, the previous figure the ONS had produced for fuel poverty under the LILEE measure in 2023 was 3.17m households – a difference of over 300,000 households to the revised figure published today [pdf].

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented:

“The latest figures show the inadequacy of current fuel poverty monitoring.

“On the one hand it is welcome that official rates of fuel poverty are down – it means that investing in energy efficiency measures such as insulation and heat pumps works.

“But on the other hand, we see the measure which is most sensitive to the rising cost of living creeping up. This shows just how devastating the ongoing cost of living crisis is and what a mistake it was for the Chancellor to axe Winter Fuel Payments.

“It is now high time that the Chancellor finally commits in full to the £13.2bn Warm Homes Plan promised in the Labour Manifesto. This will ensure that millions of people can stay warm every winter.

“But given that energy bills continue to rise – and even the Office of Budget Responsibility has said that increases in gas prices are harming the economy – the Government must go further.

“The Chancellor must provide help to those struggling in fuel poverty now, not continue with cuts in vital support to older and disabled people.

“We need a government willing to invest in the solutions to the cost of living crisis – and the future of the country.”

Dr Matthew Scott, Senior Policy Officer at the Chartered Institute of Housing, said:

“Everyone should be able to live in a safe, warm home. However, the latest fuel poverty statistics published this morning show that progress essentially flatlined in the final years of the previous government.

“Through its Warm Homes Plan and updated fuel poverty strategy, the new government has an unmissable opportunity to reverse this trend. By building on its welcome investment into the Social Housing Fund and Local Grant programmes, the government can reduce energy bills and improve the health and wellbeing of millions of people before the end of the decade.

“CIH continues to call for the government to allocate the full £13.2 billion to its Warm Homes Plan in the forthcoming spending review, utilising the expertise and experience of social housing providers as key delivery partners.”

Jonathan Bean added:

“Government energy efficiency schemes are failing badly as they have only taken only 0.2% of households out of fuel poverty, even if changes to the Warm Home Discount Scheme are included. At this rate it will take until 2070 to hit the Government’s 2030 Fuel Poverty Target.

“One reason for the failure of retrofit schemes is that they have not focussed on the homes with the highest fuel poverty incidence, conversion flats (18.8%). Instead schemes are biased towards those in detached houses, who have the lowest fuel poverty incidence (7.3%). A totally new retrofit strategy is needed if the Government is serious about tackling fuel poverty.

“Electric only households have double the rate (20.7%) of fuel poverty than gas (10.0%) which highlights the urgency of bringing down inflated electricity prices that are currently quadruple the price of gas.”

Role of gas in the spotlight as energy prices set to rise

Forecasts reveal the energy bill price cap is set to rise yet again in April when Ofgem makes the next price cap announcement on 25th February.

Meanwhile analysis of the energy market prices show that the increasing average household cost of energy directly mirrors a trend-line of gas prices since July 2024. [1]

At the heart of the challenge is the system that sees electricity prices being set by the cost of gas up to 40% of the time under the marginal pricing rules.

With the cost of gas rising to a two year high in recent weeks, the over reliance on fossil fuels in the country’s energy system is continuing to cause distress in households.

A spokesperson for the End Fuel Poverty Coalition, said:

“As volatile energy bills continue to be set by our reliance on global wholesale markets and driven by the cost of gas, it is even more vital that we see moves toward sustainable, cheaper, renewable energy.

“This of course needs to be combined with support for vulnerable households with their energy bills and investment in helping people make their homes more energy efficient – especially those living in low quality private rented homes.

“But until homes can be upgraded, consumers need to navigate a confusing array of energy tariffs. When comparing tariffs, customers must use their own energy usage and must not rely on industry averages as this may hide the true cost a household will pay.

“Customers also need to look out for exit fees which may trap you into uncompetitive tariffs in the future. And, if a household is interested in moving to a ‘tracker’ style tariff, it is even more important to make sure you look at your own usage, the unit costs and the standing charges and check that they will offer you real value for money.”

The current gas price surge is driven by the conflict in Ukraine, a colder than expected European winter and volatile wholesale markets operated by city market traders.

Campaigners have claimed that the latest energy price forecasts show customers are being gaslighted by an industry that has made £483 billion in profits since 2020.

Warm This Winter spokesperson Caroline Simpson said:

“It’s soul destroying that there will be another price cap rise. What billpayers don’t know is that even their electricity bills are chained to gas prices. This over reliance on gas – both for our heating and in setting the electricity price – is why we saw huge hikes in bills four years ago and now we are seeing prices set to rise again.

“Instead, the public are being told by some politicians that net zero and green policies are to blame which couldn’t be further from the truth and we need to stop gaslighting people.

“Our bills are high and the ones who benefit are greedy gas and oil companies who are making billions. That is why we desperately need to develop our own renewable energy sources as the only way to achieve lower prices and energy security for good.”

ENDS

[1] Raw data for chart as below.

Date	Gas price (USD/MMBtu)	Average annual energy bill (GBP)
Jul-24	2.04	1568.00
Aug-24	2.24	1568.00
Sep-24	2.32	1568.00
Oct-24	2.35	1717.00
Nov-24	2.82	1717.00
Dec-24	3.31	1717.00
Jan-25	3.95	1738.00
Feb-25	3.62	1738.00
Mar-25	Trend line	1738.00
Apr-25	Trend line	1846.00* or 1823.00**

Source for Natural Gas Prices: Bloomberg taken on closest working day to 17th of each month. Source for Energy Bill prices: Ofgem / *Guardian 18/2/25 **BBC 18/2/25

Snow and cold health warnings demonstrate need for energy bill support

As health experts warn old and disabled peoples’ lives are at risk with Britain set to freeze until Wednesday (January 8), campaigners are calling for the government to fast track a social tariff backed by three-quarters of voters.

Warm This Winter found a huge majority of the public think the Government should provide more support to vulnerable households with their energy bills [1] which they also believe should be funded by the wider energy sector that has made over £483 billion in profits according to the latest stats released by campaigners.

Three quarters of the public (75%) back the Government bringing in a social tariff to provide a discount on energy bills to those in greatest need of help.

A social tariff offers lasting protection to those who depend on heating and electricity the most for their health and well-being, reducing the costs of every unit of energy they use and shielding them from volatile and persistently high energy prices.

But after many pensioners have now seen their winter fuel payments removed, 78% of the public called for a social tariff to be made available to older people.

And 86% felt that those who are dependent on powered medical equipment in order to stay healthy at home (e.g. dialysis machines, oxygen concentrators, artificial ventilators) or rely on energy to power equipment (e.g. charge wheelchairs, run fridges for medicines) should get the tariff.

Similar high levels of support were found for the social tariff going to those who have respiratory diseases (81%), have cardiovascular disease (77%), disabilities (76%), are financially vulnerable (72%) or are at risk from not using energy due to money worries (69%).

As in previous polling, the public backed the social tariff being paid for by the energy industry (producers, networks and suppliers). There was also support for the cost being split between industry and general taxation.

There was almost no support for it being fully funded by spreading the costs across everyone else’s energy bills, which is usually what happens with support schemes at present.

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented:

“As households continue to suffer as a result of our dependence on volatile gas prices, the to-do list for the Government in 2025 gets even longer.

“As a priority, Ministers must set out plans to tackle affordability and discrimination in the energy market. This is an imperative to reduce and prevent the public health complications that arise from so many millions of people living in cold damp homes.

“We must see affordable energy bills for those most in need of support through a social tariff alongside other measures to bring down prices, address issues with smart meters and ensure all households can access the best tariffs and support.

“At the same time, Ministers must not let up in delivering longer-term market reforms that prioritise consumers, while also providing the £13.2bn in funding needed for the Warm Homes Plan and continuing to drive forward renewable energy projects which improve our energy security.”

Warm This Winter campaign manager, Caroline Simpson, commented:

“The public believe that a social tariff must be implemented and this needs to be done as soon as possible to avoid more scenes of vulnerable people living in cold damp homes every winter. Hard-pressed bill payers also want to see this programme paid for by energy industry profits.

“Most also agree the only way to bring down everyone’s bills in the long term is to help households reduce their energy use, by insulating and ventilating the UK’s housing, which is some of the leakiest in Europe. But in the meantime we must ensure we protect the most vulnerable people in our society from the continuing high cost of energy driven by volatile gas prices.”

ENDS

[1] Opinium conducted an online survey of 2,014 nationally and politically representative UK adults between 7th and 8th October 2024.

Energy firm profits top £483 billion since start of crisis

Just 20 energy companies have made £483 billion in profits since the start of the energy bills crisis. [1]

While the full range of figures for 2024 have yet to be declared, profits this year amount to £9bn with another £77bn of interims also posted.

Recent Ofgem price cap changes have seen energy bills creep upwards with a further 1.2% increase due to come into force from 1 January 2025.

A spokesperson for the End Fuel Poverty Coalition, commented:

“While consumers have suffered in cold damp homes this winter, energy firms’ boardrooms have been celebrating further bumper profits.

“To add insult to injury, around a quarter of what is spent on heating our draughty properties is wasted, because the fact is that the UK has some of the worst insulated homes in Europe. Fuel poor households are literally seeing money fly out of their windows and into the pockets of the energy industry.

“We are repeatedly told that there is not enough money to provide support for older people with their energy or to roll out comprehensive programmes of insulation, these figures show this is simply not true. There is plenty of money in the energy industry, it’s just not in the hands of hard-pressed customers.”

The staggering sums are revealed in the End Fuel Poverty Coalition’s updated profit tracker which examines profits made by a sample of companies that include energy producers (such as Equinor and Shell) through to the firms that control our energy grid (such as National Grid, UK Power Networks and National Gas Transmission) as well as suppliers (such as British Gas). It does not include supply chains or market trading firms.

As recently as October, changes in the price cap meant that suppliers will be able to make an additional 11% in profits on every standard variable tariff. Analysis of these figures suggest that supplier profits allowed through the Price Cap could amount to c.£1.2 billion over the next 12 months, enough to cover the cost of Winter Fuel Payments for almost all pensioners. [2]

Warm This Winter spokesperson Caroline Simpson said: “We reckon it’s about time the energy industry stopped lining their own pockets and supported the estimated 8.8 million people that have spent Christmas in cold damp homes.”

A March 2024 Warm This Winter Tariff Watch report also called for improvements in transparency of the ownership of energy network and transmission firms after it found that British households had been boosting the profits of Chinese and Qatari Government-backed funds.

ENDS

[1] Researchers examined the declared profits of the 20 energy firms the End Fuel Poverty Coalition is most asked to comment on. This sample of the industry ranges from energy producers (such as Equinor and Shell) through to the firms that control our energy grid (such as National Grid, UK Power Networks and Cadent) as well as suppliers (such as British Gas). It does not include supply chains nor market trading firms. Previous updates have been published on:

The updated tracker is available at: https://www.endfuelpoverty.org.uk/news/energy-firm-profits-tracker/

[2] Ofgem Price Cap decision, p4 https://www.ofgem.gov.uk/sites/default/files/2024-08/Summary_of_Changes_to_Energy_Price_Cap_1_October_to_31_December_2024.pdf. EBIT allowance from 1 October 2024 is £44 per standard variable tariff customer per year. Ofgem state that 27m customers are on a standard variable tariff. £44 * 27m = £1.19bn.

Millions to spend a fourth winter in cold damp homes

New figures reveal that 16% of UK adults (8.8m people) live in cold damp homes, exposed to the health complications that come from living in fuel poverty. [1]

While the Government has announced that a Warm Homes Plan will help improve people’s homes in years to come, this will come too late for the one in ten (9%) who frequently experienced, dangerous, levels of mould in their homes over the past 12 months.

People who live in poorly insulated homes risk seeing damp and mould spread and the NHS warns that people living in these conditions are more likely to have respiratory problems, respiratory infections, allergies or asthma.

Damp and mould can also affect the immune system while living in such conditions can also increase the risk of heart disease, heart attacks or strokes.

Cold homes can cause and worsen respiratory conditions, cardiovascular diseases, poor mental health, dementia and hypothermia as well as cause and slow recovery from injury.

To tackle the problem, a large majority of people support a fully funded nationwide insulation and ventilation programme to create healthy, energy efficient homes that will slash excess deaths caused by cold, damp houses in winter.

Nearly three-quarters (72%) agree the worst insulated homes should be the priority as almost half (47%) of those polled are worried about how they will stay warm this winter, with 46% worried if they have to rely on the NHS this winter. [2]

A spokesperson for the End Fuel Poverty Coalition, commented:

“The sheer numbers of people living in cold damp homes this winter should send alarm bells ringing throughout Westminster.

“These shocking figures have hardly changed since last year and with energy bills heading upwards again in January, the situation is now critical for the Government.

“The Chancellor must take two immediate steps in the Comprehensive Spending Review. Firstly, she must fully support the Warm Homes Plan with £13.2bn of funding and a commitment to help the worst insulated homes get support first.

“Then Ministers must also bring in more support for vulnerable households this winter and speed up plans to bring in a social tariff for next winter – a move that is backed by the vast majority of voters.”

Following the findings of the poll, commissioned by campaign group Warm This Winter, organisations have signed an open letter sent to Darren Jones, the Chief Secretary to the Treasury calling for the Government to commit to the £13.2 billion.

Warm This Winter spokesperson Caroline Simpson said: “It is shocking that whilst people are looking forward to celebrating the festivities, too many are still living in true Dickensian conditions, where cold damp homes are making them ill.

“We need to see a Government that has the ambition to create the homes people deserve and banish these appalling conditions to a bye-gone era where they belong.”

ENDS

[1] Opinium conducted an online survey of 2,000 UK adults between 22nd and 26th November 2024. Results have been weighted to be nationally representative. In 2023, there were 54,196,443 people aged 18 plus in the UK according to ONS.

[2] Opinium conducted an online survey of 2,014 UK adults between 7th and 8th October 2024. Results were weighted to be nationally and politically representative of the UK adult population.

Insulate us from energy shocks say bill payers as public reveal cold winter fears

New figures from the Warm This Winter campaign have found that almost half (47%) of those polled are worried about how they will stay warm this winter, with 46% worried that they may need to rely on the NHS this winter. [1]

Over 65s are the most concerned group with half (50%) worried about how they will stay warm and the same number of older people scared about needing to use the NHS in the colder months.

The figures come after data, released by the DWP to the House of Commons Select Committee on work and pensions, have shown thousands of pensioners will be pushed into poverty by the decision to remove Winter Fuel Payments.

Campaigners warn that the official statistics are likely an underestimate of the suffering caused by the decision. Those missing out on Winter Fuel Payments this year include 1.2m pensioners in absolute poverty and 1.6m disabled older people.

As part of the long term solution to cold damp homes, the Warm This Winter data shows that nearly three quarters (72%) of the public want the UK’s worst homes to be prioritised with a properly funded insulation and ventilation scheme.

But until the Government’s Warm Homes Plan is introduced, energy bills remain around 65% higher (c.£700 per average household) than in winter 2020/21 – a fourth winter of the energy bills crisis driven by our over reliance on expensive gas.

As the first cold snap of the 2024/25 winter hits home, data analysis by academics has found fuel poor households are using dangerously low amounts of energy during freezing weather.

This has also led to calls to reform the Cold Weather Payments so they are paid out when the Met Office predicts the temperature in the next 24 hours is likely to fall to -4C or below, rather than paid after a cold snap as is the case at present.

As well as short term measures to high energy bills, six out of 10 people actively support a fully-funded nationwide insulation and ventilation programme to create healthy, energy efficient homes that will also make bill payers less exposed to energy shocks.

Experts have calculated it could save households up to £400 on yearly energy bills.

A spokesperson for the End Fuel Poverty Coalition said:

“The dangerous situation households will face this winter is becoming clearer – more people are likely to be living in cold damp homes which will put people in harm’s way.

“Fully funding support to insulate, ventilate and improve the heating in people’s homes is the fastest way to bring down energy bills for good.

“Households – and employers in the industry – need the reassurance that the Government will stick to its word and deliver the £13.2bn investment in the Warm Homes Plan that they promised during the election campaign.

“But home improvements on such a scale will take time to take effect and will be no comfort to those struggling this winter.

“That’s why it is so vital the ministers bring in more support for vulnerable households this winter and speed up plans to bring in a social tariff for next winter – a move that is backed by the vast majority of voters.”

Caroline Simpson, spokesperson for the Warm This Winter campaign said:

“The public have spoken. They want a comprehensive, funded, insulation and ventilation programme which prioritises the worst homes first.

“If the Government acts now and puts the right measures in place, it would be welcomed by the majority of people in the UK no matter how they voted in July. And as well as making healthier, happier homes, it would also bring down bills in the long term, which would protect us from the ongoing cycle of energy shocks.”

Support for a funded insulation and ventilation programme crosses party lines with 69% of those who intend to vote Labour, 65% of Liberal Democrats, 54% of Conservatives and 53% of Reform, backing a more comprehensive plan.

Jan Shortt, National Pensioners Convention (NPC) General Secretary said:

“Will the Chancellor now reconsider her decision and reinstate the Winter Fuel Payment to all pensioners this year – or will she take responsibility for the risk to the health and welfare of those struggling to survive the cold without the allowance?

“Given that we already have freezing weather across the country, it is inevitable that those without the support of the Winter Fuel Payment will be suffering in cold homes – many afraid to turn the heating on at all.

“The NPC is concerned to learn that the wait for those applying for pension credit is extended to 10 weeks as the extra staff being brought into the DWP will not be trained until the new year. This delay will take those applicants who need their winter fuel payment now to at least February.

“We genuinely fear that some may not survive to see February and their delayed payment.”

ENDS

Opinium conducted an online survey of 2,014 nationally and politically representative UK adults between 7th and 8th October 2024

Public support for energy social tariff surges ahead of the Budget

A huge majority of the public back the Government providing more support to vulnerable households with their energy bills. [1]

Following the Chancellor’s removal of the Winter Fuel Payment from most pensioners, 67% of the public now want to see Ministers take action to boost other energy bill help.

Three quarters of the public (75%) also back the Government bringing in a social tariff to provide a discount on energy bills to those in greatest need of help.

The new polling by Opinium for the Warm This Winter campaign reveals that support for a social tariff has surged from 57% of the public backing the move in a similar poll published before the General Election.

In the new figures, while 12% don’t know if they back the move, 13% oppose the plan.

A social tariff offers lasting protection to those who depend on heating and electricity the most for their health and well-being, reducing the unit cost they pay and shielding them from volatile and persistently high energy costs.

In the run-up to the 2024 election, the Labour Party committed to deliver a “fairer energy system for everyone” and over half (55%) of Labour voters said that this made them more likely to vote for the party in July’s election. [2]

But after many pensioners have now seen their winter fuel payments removed, 78% of the public called for a social tariff to be made available to older people.

86% felt that those who are dependent on powered medical equipment in order to stay healthy at home (e.g. dialysis machines, oxygen concentrators, artificial ventilators) or rely on energy to power equipment (e.g. charge wheelchairs, run fridges for medicines) should get the tariff.

Similar high levels of support were found for the social tariff going to those who have respiratory diseases (81%), have cardiovascular disease (77%), have a disability (76%), are financially vulnerable (72%) or are at risk from not using energy due to money worries (69%).

The most recent energy industry profits tracker shows that over £457bn in profits have been generated by firms since the start of the energy bills crisis. Over £1,200 per household in profit has been generated by network operators and transmission firms alone. [3]

There was almost no support for it being fully funded by spreading the costs across everyone else’s energy bills, which is usually what happens with support schemes at present.

Warm This Winter campaign manager, Caroline Simpson, commented:

In the run-up to the 2024 election, the Labour Party committed to deliver a “fairer energy system for everyone” and over half (55%) of Labour voters say that this made them more likely to vote for the party in July’s election.

But after many pensioners have now seen their winter fuel payments removed, 78% of the public called for a social tariff to be made available to elderly people.

A spokesperson for the End Fuel Poverty Coalition commented:

“This autumn is being dominated by the Chancellor’s cold hearted decision to remove Winter Fuel Payments from elderly people which we know will hit those with disabilities and pre-existing health conditions very hard indeed.

“But not only is this the wrong policy from a public health perspective, it also flies against popular opinion.

“Protecting vulnerable consumers from energy prices that remain way above 2021 levels is a popular and easy to implement policy. The Government must now prioritise delivering a social tariff while its longer term reforms to boost renewables and its Warm Homes Plan have the time needed to deliver results.

“The public would support this being paid for by the whole energy industry. Producers, transmission firms, network operators, market traders, suppliers and their supply chains could all chip in through their profits to make this happen.”

David Southgate, policy manager at disability equality charity Scope, said:

“It’s clear there is widespread support for making energy bills much fairer for disabled people. The government must listen.

“Life costs a lot more when you’re disabled. Disabled people have to spend more of their income on energy and continually face eye-watering bills. For charging vital equipment like wheelchairs, hoists and breathing equipment, or for more heating to stay warm and well.

“Disabled households are now beyond breaking point. They have cut back everything they can and are increasingly forced into unmanageable debt.

“That’s why Scope continues to call for discounted bills for disabled people. This would finally put an end to the impossible situation millions of disabled people face trying to make ends meet.”

ENDS

[1] Opinium conducted an online survey of 2,014 nationally and politically representative UK adults between 7th and 8th October 2024

[2] 32% of 2024 Labour voters said it made no difference to their vote or they didn’t know. 7% said it made them less likely to vote Labour, but did so anyway.

[3] Data as at 3 September 2024. Researchers examined the declared profits of the 20 firms the End Fuel Poverty Coalition is most asked to comment on. This sample of the industry ranges from energy producers (such as Equinor and Shell) through to the firms that control our energy grid (such as National Grid, UK Power Networks and Cadent) as well as suppliers (such as British Gas). It does not include supply chains nor market trading firms.

Winter fuel payment cuts set to hit 84% of disabled pensioners

Over four-fifths (84%) of older people with a long-term health condition or disability claim they will no longer get Winter Fuel Payments according to new research. [1]

The figures, reported in the Daily Express, suggest that one in five (19%*) people who have long-term health conditions or disabilities, are over 66 and say they will no longer likely get Winter Fuel Payments claim that they are worried about their own safety because of the risks of living in a cold damp home this winter. This compares with 17% of the general public and 14% of all over 65s.

The figures* also indicate that those respondents who claim they are no longer eligible for Winter Fuel Payments and have a physical disability are more likely to live in a home that is often cold and damp than the general population.

81% of older people who are already worried about cold and damp in their own homes claim they will not get Winter Fuel Payments.

While owner occupiers are most likely to no longer get Winter Fuel Payments, 77% of older people who rent will miss out, with those in social housing* especially affected by the cuts.

Commenting on the figures, a spokesperson for the End Fuel Poverty Coalition, commented:

“The data is yet another warning sign. The indications are that older people who no longer get the Winter Fuel Payment are more likely to suffer in cold damp homes this winter than the general public.

“For those pensioners with a physical disability, the situation is potentially even worse. Many do not have access to the means tested benefits needed to claim the Winter Fuel Payment and the Government must urgently assess the impact on this group in particular and provide more support for them.

“Until the Government fully implements its plans to improve insulation and ventilation of buildings as well as stabilise energy costs, vulnerable households will continue to need financial support.

“That’s why the Winter Fuel Payments were so important. The money provided help for older households to stay warm each winter. Sadly, now more older people are expected to live in cold damp homes this winter and this puts them at greater risk of ill health, with over quarter of a million older people becoming so ill they will be forced to the doors of the NHS.”

James Taylor, Scope’s executive director of strategy and social change, said:

“These findings are a shocking indictment of a plan that will leave older disabled people in an impossible situation this winter.

“Life already costs more when you’re disabled. Higher electricity bills because of medical equipment to power. Higher heating bills because of health conditions affected by the cold.

“Since the start of this crisis, we’ve heard from disabled people who are going without heating and forgoing medical treatment. Sacrifices that put their health at risk.

“While some disabled pensioners receive pension credit, there are an alarming number who will miss out this winter. We’d urge anyone who thinks they could be eligible to apply, or to get in touch with our helpline for advice.

“We desperately need a longer-term solution for the eye-watering energy costs many disabled people face, which is why we’re calling for the government to bring in discounted bills for disabled households.”

ENDS

[1] Winter Fuel Payment research by Opinium (undertaken 7-8 Oct 2024, sample of 2,014, weighted to be politically and nationally representative).

Among respondents aged over 66, 88% say they do not receive a qualifying benefit and, therefore, will no longer get the Winter Fuel Payment in winter 2024/25. 2% preferred not to answer or did not know, leaving 10% saying they are on a qualifying benefit.

2024 voting behaviour

90% of Labour voters aged over 66 claim they will no longer get the Winter Fuel Payment

89% of Conservative voters aged over 66 claim they will no longer get the Winter Fuel Payment

96% of Lib Dem voters aged over 66 claim they will no longer get the Winter Fuel Payment*

80% of Reform voters aged over 66 claim they will no longer get the Winter Fuel Payment

Region

93% of Scots aged over 66 claim they will no longer get the Winter Fuel Payment*

91% of people aged over 66 and living in southern England claim they will no longer get the Winter Fuel Payment

88% of people aged over 66 and living in London claim they will no longer get the Winter Fuel Payment*

87% of people aged over 66 and living in the English Midlands claim they will no longer get the Winter Fuel Payment

85% of people aged over 66 and living in northern England claim they will no longer get the Winter Fuel Payment

81% of people aged over 66 and living in Wales or Northern Ireland claim they will no longer get the Winter Fuel Payment*

* indicates that the base sample is below 50 and caution should be taken in using or reporting on this figure with more detailed research required to confirm the findings.

Cold damp homes cost to NHS estimated as energy price cap rises

New estimates predict that cuts to the winter fuel payment could lead to increased costs to the NHS. [1]

The analysis, first reported in the Daily Express, suggests that in 2024, the total cost to the NHS for treating pensioners in cold, damp homes may reach at least £1.5bn a year, with c.2.3m older people living in poor housing conditions.

Within these figures, an estimated 262,000 pensioners will live in cold damp homes due to the decision to axe winter fuel payments. This alone could cost the health service more than £169m a year, the research suggests.

The news comes as energy bills are set to increase for all households by 10% from 1 October.

This will leave the average household paying around 65% more for their energy than in winter 2020/21 and comes on top of years of the wider cost of living crisis, meaning households have less ability to pay these high prices. Energy debt has now hit £3.7bn according to Ofgem figures published last week.

For pensioners who previously had winter fuel payments, but now miss out, energy prices will seem higher than at any point in their lives. Those missing out on Winter Fuel Payments this year include 1.2m pensioners in absolute poverty and 1.6m disabled older people.

As personal finance experts point out, the increase in the triple lock does not replace the winter fuel payment and Uswitch.com estimate 752,000 older people will not use heating at all this winter.

Among the wider public, National Energy Action has calculated that around half of households will be rationing their energy use.

A spokesperson for the End Fuel Poverty Coalition commented:

“We’re now heading into the fourth winter of sky high energy prices, meaning the average household will have paid more than £2,500 extra for their energy than had we not been so exposed to volatile energy markets.

“For older people who previously received the winter fuel payment, but will no longer do so under the Chancellor’s new rules, the situation is even worse.

“The long term way to reduce the costs to the NHS of people living in cold damp homes is to improve insulation and ventilation of buildings as well as stabilise energy costs by getting the country away from being hooked on volatile gas prices.

“But until the Government fully implements its positive plans in these areas, vulnerable households will continue to need financial support. That’s why the Winter Fuel Payments were so important, the money provided help for older households to stay warm each winter.

“Sadly, now more older people are expected to live in cold damp homes this winter and this puts them at greater risk of ill health, meaning the costs to the NHS will soar.”

Caroline Simpson, Warm This Winter campaign spokesperson added:

“This 10 percent price cap rise is yet another blow that households can ill afford, especially when energy companies are raking in billions in profits every week.

“People want to see a transition to renewables, they want to see an end to being reliant on unscrupulous gas giants which is leading to them having to choose between eating and heating and frankly that money needs to go back in people’s pockets.

“That’s why we are pleased this government is taking great steps to end the broken energy system they inherited, but they must also help households who simply cannot afford to continue paying 65% more than they were three years ago on energy bills and look at help such as a social tariff. If they’re looking at how to fund it, these profiteering energy companies would be a good place to start.”

Jan Shortt, general secretary of the National Pensioners Convention, said:

“The loss of the winter fuel allowance for the majority of older people clearly puts them at risk. It is a known fact that older people require warmth and a stable temperature to maintain their health.

“Living in cold, damp homes heightens the risk of strokes, heart disease, respiratory conditions and generally harms the rest of the body.

It therefore follows that the risk of overwhelming the NHS in winter is high and the cost of dealing with the consequences of the Government decision will be felt throughout the NHS and care sectors.”

Age UK charity director Caroline Abrahams added:

“We’re hearing from older people worried about how they will cope without their winter fuel payment, including many on low and modest incomes who are planning to ration their heating this winter because they’re frightened how they’ll manage this winter.

“For an older person to be forced to live in a cold home is deeply worrying because it’s very bad for their health, especially if they are living with lung or heart conditions or are very frail.

“The consequences for them could be severe and we’re sure that we’ll see more older people going to hospital this winter as a result – the last thing they or the NHS needs.

“The Government must do more at the Budget to ensure pensioners can navigate the coming cold months safely and with their health intact, or the consequences will be felt by older people and the NHS.”

Morgan Vine, head of policy and influencing at Independent Age, warned that living in a cold and damp home can have “very serious implications” for OAPs:

“Many of the older people on a low income we speak to tell us they were already cutting back on heating before the announcement to means test the winter fuel payment.

“With the reality of now losing hundreds of pounds this winter, many have shared they will be making severe cutbacks including not turning the heating on at all.

“Others have told us they will reduce the amount they eat so they can turn the heating on for a few hours a day.

“It is unacceptable that people in later life are having to make dangerous sacrifices as we approach the colder months, and we are concerned that the demand for NHS services could increase as a result.”

ENDS

[1] Estimates and calculations available online in this pdf. The research was first reported in the Daily Express on 29/30 September 2024.