Energy price cap rise ‘will push millions in Great Britain into fuel poverty’

Energy bills in Great Britain will rise by more than £220 a year from Wednesday, pushing an estimated 13.5 million households into fuel poverty, according to campaigners. The increase follows months of volatility on global gas markets and marks the steepest summer rise in four years. The End Fuel Poverty Coalition, using research from the University of York, said the number of homes forced to spend more than 10% of their income on energy will climb from almost 11.3 million in April to 13.5 million [1]. Almost 5.5 million homes will face bills consuming about 20% of their income, up from 4.3 million in April [1]. Simon Francis, the coalition’s coordinator, said the figures reveal “a growing number of households are spending an unsustainable share of their income just to heat their homes in winter and keep them cool in summer” [1]. The new cap sets electricity rates at 26.11p per kilowatt hour and gas at 7.33p for direct-debit customers, equivalent to an annual dual-fuel bill of £1,862 under the regulator’s previous methodology [1]. Using newer assumptions that reflect lower consumption, the regulator estimates the average household will spend £1,663 from July, with analysts at Cornwall Insight forecasting a slight drop to £1,654 from October [1]. The price surge extends a pattern that began during the 2021–2023 global energy crisis, when the post-pandemic economic rebound and Russia’s invasion of Ukraine sent natural gas and electricity prices to record highs [2]. That crisis pushed an estimated 11 million additional Europeans toward poverty because of energy inflation, and Europe’s reliance on imported gas left it uniquely exposed [2]. In the UK, the Joseph Rowntree Foundation reported that about one in five people were already living in poverty in 2021 [4]. Sharon Graham, general secretary of the Unite union, called the cap increase “another kick in the teeth for workers and families” and said the UK has “among the highest energy bills in Europe” [1]. Unite has planned protests demanding deep cuts to energy costs and the renationalisation of energy companies [1]. Francis said any plan to devolve energy control must include “a permanent social tariff, an end to energy debt, reduction of electricity costs and a credible plan to break the link between gas and electricity prices” [1]. The government has removed some policy costs from home energy bills and expanded its warm home discount scheme to reach 6 million households [1]. Martin McCluskey, the minister for energy consumers, said officials would monitor the situation before winter and “plan for all contingencies, while doubling down on our mission for clean power to bring down bills for good” [1]. The UK has committed to expanding offshore wind capacity to 60 GW by 2030, partly to improve energy security [7].