Budget response: Against 72% rise in energy bills, £100 support is an ‘inefficient sticking plaster’ as the most vulnerable face crippling bills and sky-high debt

• Fuel poverty charity National Energy Action says today’s Budget announcement does little to help the most vulnerable who are now facing cold homes and unpayable energy debts this winter.
• Energy bills remain cripplingly high, so a £100 cash payment won’t help those in greatest need. From January 2027, they are forecast to be £2,192 for a typical household, an increase of £915 (72%) since October 2021.
• The debt relief scheme, announced for next spring, is welcome but by then the debt mountain will be colossal, trapping low-income people in unavoidable debt and allowing debts to keep rising.

In today’s Budget, the Chancellor has announced that those in council tax bands A to D will receive the £100 payment, but fuel poverty charity National Energy Action says it’s an ‘inefficient sticking plaster’ leaving the most vulnerable facing yet another cold winter.

Energy bills for a typical household are forecast to reach £2,192 in January – £915 (72%) higher than October 2021 when the energy crisis began. But the Chancellor’s £100 payment won’t necessarily go to those in the greatest need.

National Energy Action Chief Executive Adam Scorer says:

‘Low-income households desperately needed the Budget to deliver energy bill support this winter. They did not get that. A £100 cost-of-living payment is a gesture, not a material difference. It’s an inefficient sticking plaster against sky-high bills and mounting debt. The payment is targeted by council tax band and there is no guarantee people can use it to stay warm when the cost of living has stretched their budgets to breaking point.

‘Last time energy bills were at similar levels in 2022, the Conservative government used council tax bands to get support to people, missing hundreds of thousands of low-income households and giving support to many who didn’t need it. Four years on, using the same approach is simply unacceptable. This Budget shows precious little progress has been made on data and targeting.’

‘Many who receive it won’t need it, while the most vulnerable are struggling in unheated, damp homes. The government could have targeted those in greatest need.’

No debt relief, yet

Energy debt has reached £5 billion and is rising. Today the Chancellor announced that the targeted debt relief scheme will be implemented, which is welcomed by National Energy Action as the charity has long campaigned for it. However, it has been delayed until 2027, leaving low-income families trapped in arrears they cannot escape from.

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

‘Years of high energy bills and cold and poorly insulated homes mean many have nothing left to fall back on, are sinking into energy debt, and are already rationing heat and cutting back on essentials. Cold homes cost us all. They cost the NHS, they cost children opportunities to learn, and they cost people their health and wellbeing.’

Warm Homes Plan

The Chancellor also announced that £1 billion has been reprioritised away from the Warm Homes Plan capital budget, which threatens plans to support low-income families live in efficient and affordable homes and prevent future energy crises.

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

‘Budgets are choices. This was supposed to be a Budget that responded to another energy crisis this winter and it’s not passed that test. The hardship people will face this winter and the costs that will land on the NHS aren’t inevitable. They’re the product of decisions made in successive budgets by successive governments. The government has the power to help people to stay warm this winter, but it needs to be courageous and use it.’

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. Read the Budget here: www.gov.uk/government/publications/budget-2026-document​
3. The Chancellor’s £100 payment to council tax bands A-D only applies to England. Devolved Administrations will receive consequential payments but have discretion to determine how that money is spent.

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