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Nine Million UK Homes Face Winter Without Energy Bill Buffer

Soaring wholesale prices have pushed forecasts for a large January cap rise that will squeeze household budgets

Overview

  • Research for Uswitch shows more than nine million households are entering winter either in energy debt or with no account credit, with about 3.4 million currently in arrears owing roughly £750 million in total.
  • The government has expanded the Warm Home Discount to about six million households and letters confirming eligibility began being issued this week, with suppliers able to apply the £150 rebate between October and March.
  • Prime Minister Andy Burnham has asked the Chancellor and the Energy Secretary to assess whether gas standing charges can be removed, a step Nesta modelling says would typically cut average bills by only about £27 a year and shift costs onto unit rates.
  • Industry forecasters and suppliers warn the Ofgem price cap, which rose to £1,723 on October 1, could jump substantially in January because volatile wholesale markets have tightened due to geopolitical tensions.
  • Charities and advisers are urging targeted crisis support for disabled people and families with children while urging households to check eligibility, submit meter readings, consider fixed tariffs, and contact suppliers about repayment plans.