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Energy bills to rise 65 per cent higher than four years ago

CAMPAIGNERS called for the government to reverse cuts to the winter fuel payment today, with energy bills set to rise by 10 per cent from next week.

Regulator Ofgem announced it will raise its price cap starting next Tuesday, pushing bills up from £1,568 to £1,717 for a typical household.

The End Fuel Poverty Coalition warned that energy bills will be 65 per cent higher than in winter 2020/21.

Millions have already fallen into energy debt, with Ofgem data revealing that the total owed has spiralled into a record-breaking £3.69 billion. 

This winter, some 1.2m pensioners in poverty and 1.6m disabled people will miss out on winter fuel payments, making it more and more difficult for them to cover the rising bills. 

The Labour government has announced cuts to the payment, previously available to all pensioners, limiting it to only those receiving means-tested benefits.

Comparison service Uswitch estimated that 752,000 older people will not use heating at all this winter as a result. 

Labour’s own research, from when the Conservatives discussed cutting the payment in 2017, warned that the cuts would cause 3,850 deaths.

End Fuel Poverty Coalition co-ordinator Simon Francis commented: “We’re now heading into the fourth winter of sky-high energy prices. 

“After October 1, bills will be 65 per cent higher than in 2020/21, meaning the average household will have paid more than £2,500 extra for their energy than had we not been so exposed to volatile gas prices and energy markets.

“For older people who previously received the winter fuel payment, but will no longer do so under the Chancellor’s new rules, the situation is even worse.

“For many pensioners, this winter will feel like the most expensive on record.

“What’s worse, there are more price increases on the horizon in January 2025.”

Mr Francis urged the government to reverse the cuts to the winter fuel payment, bring in more support for vulnerable households, reduce standing charges and introduce a social tariff.

“The energy industry has made more than £457bn in profit since the start of the crisis — so there is plenty of money in the system to be able to ensure everyone stays warm this winter and next,” he added.

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