Energy is “becoming a luxury” for millions of UK households and the government’s response to the crisis has been “woefully inadequate”, a national fuel poverty charity has warned.
Fuel Bank Foundation, which provides emergency financial support to prepayment meter (PPM) customers, as well as those who use alternative fuels, has published its latest report which highlights the extreme lengths some are going to as a result of fuel poverty.
Current estimates are that 6.3 million households in the UK are in fuel poverty, up from 4.5 million in 2022. The charity’s report described the conditions that some people will be living in as “Dickensian”.
“As temperatures drop, the days get shorter, and the need for energy increases, there will be a huge surge in the number of people who face living in Dickensian conditions: no heating, hot water, or warm meals, no washing machine, and no lighting.
“Consequently, many children and adults will become physically or mentally ill, and existing illnesses will worsen. Those with a critical need for energy – like people who need electricity to keep breathing machines running – will be exposed to significant risk.
“And for many, life will be unbearably hard. It’s a far cry from the usual narrative of hot chocolates and warming comfort foods.”
In the last 12 months, the charity has seen an 85% increase in demand for its services.
A survey of people the charity has helped in the past year found more than half (51%) said they were choosing between food and energy at least once a week, while three quarters (75%) were rationing heat and/or hot water.
Almost all (99%) of the people surveyed were making at least one financial sacrifice, with 21% making four or five and 23% seven or more financial sacrifices.
Younger people (aged 18 – 35) are more likely to be constantly living in fuel crisis as they are the most likely group to have children at home and therefore their outgoings often “far exceed” the money coming in. Furthermore, they are also the most likely group to be new to PPMs and struggle to adjust to a new way of planning their energy usage and finances.
The report found that 15% run out of money to top up their meter daily, while more than a quarter (26%) were already disconnected from their energy supply when they applied for an emergency fuel voucher.
Matthew Cole, head of Fuel Bank Foundation, said: “The sad reality is that things many of us take for granted, like switching on the kettle to make a hot drink, watching TV or putting the heating on, are becoming a luxury that many people can’t afford.”
Fuel Bank makes a number of recommendations it wants to see implemented including, among other things, increasing benefits in line with inflation and implementing a national energy efficiency programme, with priority given to homes that are the hardest to heat.
The “vastly increased VAT receipts” that are being received by Treasury thanks to high energy bills, coupled with the unredeemed Energy Bills Support Scheme payments, should be used to give those who need it targeted and automatic financial support.
It added: “The Warm Homes Discount (WHD) scheme must be reformed and simplified as a matter of priority to ensure households can easily understand and access it. The government must also progress its work on a social tariff to help customers who struggle to pay for energy, yet are not eligible for WHD.
“Support levels should be tailored to households’ needs, allowing them to stay warm and avoid fuel crisis. Crucially, this support should be funded centrally.”
Cole added: “The number of people turning to us for help has already increased this year and currently we’re forecasting a further 26% increase in demand in 2024. This isn’t sustainable.
“Action by the UK government to tackle the fuel poverty crisis has been woefully inadequate. We need a long-term, strategic action plan, coupled with immediate support for those who are going to struggle this winter.
“Next week’s Autumn Statement is an opportunity for the chancellor and the government to implement measures to ensure families can stay warm this winter.”
An Energy UK spokesperson said the figures were sadly “unsurprising”.
They added: “That’s why we continue to call on the government to put in place targeted bill support for the most vulnerable households this winter as well as looking at ways to make bills more affordable over the long-term.
“Suppliers continue to step up the support they provide to customers struggling to afford their bills through direct financial assistance and emergency credit as well training frontline staff to help callers further and closely working with charities and consumer bodies – but they can’t solve an affordability problem of this scale on their own.”
A Department for Energy Security and Net Zero spokesperson said the government spent £40 billion paying around half a typical household’s energy bill last winter.
They added: “Energy prices are falling, and our Energy Price Guarantee remains in place to protect people until April next year. We’re also continuing to support the most vulnerable, with three million households expected to benefit from the £150 Warm Home Discount, £900 for those on means-tested benefits, and an extra £150 for disabled people.
“We continue to keep all options under review for those most in need.”