Tomorrow (Wednesday 1 April), the price cap changes and annual energy bills will fall by £117, or 7%2 for a typical household on electricity and gas and paying by direct debit3.
National Energy Action Chief Executive Adam Scorer says, ‘Any price drop is good news, but everyone knows that it will be overtaken by events. It is likely to be a false dawn. And the people who know that the best are those already struggling to afford their energy bills and know the real cost of an energy crisis.
‘Unfortunately, today’s good news is hugely overshadowed by the fear and dread of what may be to come.
‘Government may want to calibrate its response based on how the US/Israel conflict with Iran unfolds. But there is one step that is overdue and necessary regardless of what happens.
‘All of National Energy Action’s clients struggle to afford decent levels of energy and a quarter4 are also mired in overwhelming levels of debts. By some estimates we have £5.5 billion of domestic energy debt 5 concentrated in low-income, vulnerable households. A number that will only get worse in the coming months.
‘Whatever provision government may make to counter soaring energy prices, it must go faster and further in providing debt relief for the most vulnerable households.
‘The imminent Debt Relief Scheme is a necessary first step, but additional Treasury-funded support is urgently needed to clear a larger share of the debt mountain that weighs so heavily on fuel poor households.’
Fuel poverty statistics
The price cap change comes after the government published the latest fuel poverty statistics for England, on Thursday [26 March] 6. There is, however, and 18-month lag on the data. While the figures show 100,000 households were lifted out of fuel poverty in 2024, the depth of fuel poverty for people who pay for their energy with a prepayment meter, by cheque or by cash or who live off the gas network is worsening.
Adam Scorer adds: ‘For 100,000 households in England, it’s welcome news that they are no longer in fuel poverty, but millions are still struggling to keep warm and healthy and progress is slowing.
‘It’s very likely to continue and it could take another 20 years to meet the UK government’s legal requirement to ensure that as many households are able to heat and power their homes.’
ENDS
Notes to editors
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National Energy Action (NEA), is the national fuel poverty charity, working across England, Wales and Northern Ireland, to improve the lives of people in fuel poverty. We directly support people with energy and income maximisation advice, and we advocate on issues such as the current energy crisis and the need to improve the energy efficiency of our homes. See: www.nea.org.uk.
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https://www.ofgem.gov.uk/press-release/energy-price-cap-will-rise-02-january
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Ofgem estimates the typical household in England, Scotland and Wales uses 2,700 kWh of electricity and 11,500 kWh of gas in a year.
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National Energy Action client data
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£5.5 billion consumer debt level: https://www.energy-uk.org.uk/news/energy-uk-raises-alarm-over-5-5-billion-energy-debt-crisis.
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The government’s fuel poverty statistics for England can be found here: https://www.gov.uk/government/statistics/annual-fuel-poverty-statistics-report-2026.