Fuel poor households facing energy bills of over £2,200 a year from tomorrow

Contact: Nick Palmer, Press and Media Officer, nick.palmer@nea.org.uk Mobile: 07596 858719

• New analysis from National Energy Action shows that a typical fuel poor household will face an energy bill of £2,282 from 1 Oct
• This comes as bills forecast to rise by a further 25% in January

With energy bills rising tomorrow (1 October), new analysis by fuel poverty charity National Energy Action shows that fuel poor households will be hardest hit, as they face annual energy bills of over £2,200.

From 1 October, Ofgem’s energy price cap will rise by 3.6% to £1,723 for a household that uses a typical amount of energy. However, new analysis by the national fuel poverty charity shows this headline price cap figure significantly understates how much many fuel poor households will really be paying.

For an Energy Performance Certificate (EPC) D-rated home, which over 75% of fuel poor households live in, National Energy Action estimates the annual energy bill will reach £2,282 from tomorrow, if the occupants meet their energy needs and don’t ration. This is due to the poorer than average energy efficiency of the home. This is nearly one-third more than what a typical household would pay.

Many of the most vulnerable households face bills even higher than £2,282. National Energy Action’s latest data shows that over 40% of households seeking support from the charity have unavoidable high energy needs linked to health conditions, having children or being 65 and older. This means they are particularly exposed when the price cap rises and must spend more than other households.

National Energy Action is calling on the government to act quickly and announce targeted measures in the October Budget to focus support on the most vulnerable households, many of whom are already in energy debt and struggling with essentials.

Adam Scorer, National Energy Action’s Chief Executive says:

‘This latest price cap rise, just before winter, means there is simply no light at the end of the tunnel for vulnerable and low-income households. In fact, if forecasts for the January 2027 price cap are correct, then it’s set to get a whole lot darker in the new year.

‘The headline price cap figure is already bad, but it doesn’t reflect the even worse reality for millions of fuel poor households. Our evidence shows vulnerable and low-income households already skipping food and heating even before this next price cap rise and temperatures start to drop. For these households, energy rationing and the debt crisis will only worsen when bills rise. A 25% rise in January would be catastrophic for these households, and the government must realise the level of crisis barrelling towards those in fuel poverty.

‘You can see just how much people are struggling by looking at the debt figures. There’s about £7 billion of energy debt in the market, and it’s been growing every quarter since autumn 2022. This is unsustainable, not just for households but also for the market as a whole.

‘The Autumn Budget must deliver additional targeted support for households most at risk this winter, alongside action to tackle energy debt and improve the least energy efficient homes.’

ENDS

Notes to editors

1. National Energy Action (NEA) is the national fuel poverty charity. We’ve worked across England, Wales, and Northern Ireland for over 40 years, to ensure that everyone can afford to live in a warm, healthy home. ​
2. The Ofgem price cap is a cap on the unit rate of energy, not a cap on a household’s total energy bill. Ofgem chooses to represent the cap with the annual energy bill of a household using what it calculates is a ‘typical’ amount of energy. This is called the Typical Domestic Consumption Value (TDCV).
3. Ofgem announced the TDCV is being decreased to reflect lower consumption of energy, as a result of rationing and energy efficiency measures. The new ‘typical’ household consumes 2,500 kWh of electricity and 9,500 kWh of gas per year. This is down from 2,700 kWh of electricity and 11,500 kWh of gas per year. The new TDCVs will be used to express the default tariff price cap levels in all Ofgem publications from July 2026 onwards. See Ofgem explainer.
4. A typical EPC D household uses 3,500 kwh of electricity and 13,200 kwh of gas, as per government energy consumption statistics: gov.uk/government/statistics/national-energy-efficiency-data-framework-need-consumption-data-tables-2021
5. Bloomberg forecast for January 2027: com/news/articles/2026-09-15/uk-energy-bills-forecast-to-jump-25-and-drive-up-inflation

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