Call for action as devastating 'fuel poverty gap' doubles in 5 years

• A new report published today reveals the fuel poverty gap has nearly doubled since 2020 and now stands at more than £400
• Annual energy bills are, on average, £700 more expensive compared to five years ago – and expected to remain high as next price cap announced today [1]
• The Government’s Warm Home Discount is set to end in April 2026 with no detail on future energy support
• Major charities and an energy company are warning without government action, the fuel poverty crisis will deepen for millions on low incomes, including older people and disabled people

A new report from 6 major charities and a leading energy supplier today warns that the UK is facing a deepening fuel poverty crisis with millions on low incomes, older people and disabled people unable to afford the energy they need to live healthily.

New analysis by Public First on behalf of the coalition found the fuel poverty gap - the amount by which energy bills would have to reduce to lift a household out of fuel poverty - has doubled since 2020, and now stands at over £400 a year. [2]

Public First estimates that around 3.7 million British households are in fuel poverty, meaning they spend over 10% of income after housing costs on energy. [3]

The group is calling for an urgent increase in support. While the Government’s Warm Home Discount is set to provide £150 this winter for some households, the report reveals it is missing more fuel-poor households than it reaches. Only 33% (1.2 million) of fuel poor households will be eligible for the expanded Warm Home Discount scheme, compared to around 67% (2.5 million) of fuel poor households that would miss out on the much-needed support. And the Warm Home Discount is due to end in April 2026, with no confirmation of what will replace it. [4]

Today’s Energy Price cap announcement will see bills remain sky high, adding to the anxiety millions feel about affording essential energy costs as we head into the autumn and winter.

With MPs returning to parliament next week, the coalition - Scope, Age UK, Independent Age, Mencap, E.ON UK, Sense and Fair by Design – are urging the government to ensure there is no gap in support from 2026. And they are calling for an increase in support to match the average fuel poverty gap of more than £400 a year, with top-up payments for disabled people and standard credit customers who have higher costs.

Longer term, the group is calling for a much more targeted, sustainable system of support with energy bills for all who need it. The report lays out how a payment based on income and other indicators of high energy need, such as disability, payment type, and energy use, would be much better targeted and could lift more than a million households out of fuel poverty.

For more information contact the Scope press office on 020 7619 7200 or email pressoffice@scope.org.uk (out of hours please call 07843 467948)

Abdi Mohamed, Head of Policy, Research and Influencing at disability equality charity Scope, said:

“The system is broken. As the fuel poverty gap widens, millions of disabled people are being pushed deeper and deeper into fuel poverty.

“Life costs more if you are disabled – on average an extra £1,095 a month.[5] We hear from disabled people every day who tell us they are unable to power vital medical and mobility equipment, facing increasing pain and losing their independence.

“The current support available for disabled people barely scratches the surface. And many no longer get the Warm Home Discount at all, despite enormous energy costs.

“The government must act with urgency to close the devastating gap in support and tackle this crisis.

Caroline Abrahams CBE, Charity Director at Age UK, said: "Older people should be able to look forward to their later years with comfort and peace of mind, not the constant choices of heating or eating, cold or debt. With the Warm Home Discount scheme due to expire next April, we must not allow there to be a gap in support that would leave thousands of older people exposed to high energy prices all over again.

“This cannot be about getting through one winter at a time — we must build a future in which no older person is left cold or struggling to afford the essentials. To achieve this requires fairer energy prices, properly insulated homes and a support system that tackles the scourge of fuel poverty for the long term."

Chris Norbury, Chief Executive at E.ON UK, said:

"Millions of households are still struggling with unaffordable energy bills, and the current approach isn’t reaching those who need help the most. It’s vital we find a fair and lasting solution that recognises affordability as a long-term challenge, not a short-term crisis.

"A more targeted approach to supporting low-income and vulnerable households, funded appropriately across government and industry,  would go a long way toward delivering the enduring change needed to lift people out of fuel poverty and make energy genuinely affordable in the future."

Maria Booker, Head of Policy at Fair By Design, said:

“This research reinforces what we’ve long known: if we want energy bill support to reach those who need it most, we must build a system based on income, not benefits. While this won’t happen overnight, it’s achievable in two years if we start now.

“In the meantime, we urgently need a more generous Warm Home Discount and targeted support for disabled people and those paying the unfair standard credit premium.”

Joanna Elson CBE, Chief Executive of Independent Age, said:

“Far too often older people in financial hardship are bed bound by the cold, turning in early for the night dressed in hats and scarves in a desperate bid to keep warm through the winter months. It’s clear from this new research we commissioned alongside Scope and other organisations, the fuel poverty crisis is still ongoing and a political intervention is urgently needed.

“The situation is dire, in the UK over one million older households are living in fuel poverty. The people in later life we speak to are making drastic and dangerous cutbacks because they cannot afford their energy bills. They are routinely switching off heating systems for weeks on end, visiting public places to stay warm and cutting down on food so they can pay their energy bills. This is unacceptable.

“In the short-term, they need the UK Government to make changes to the Warm Home Discount. It needs to be extended to at least 2027 and the targeting of the entitlement must be improved. Currently it misses far too many older people on low incomes, including those eligible for Pension Credit that do not receive it. We also want to see the amount increased from £150 to £400, to better reflect the higher cost of bills and lift people out of fuel poverty.

“The energy crisis of the past three years cannot be allowed to happen again. Long-term planning is needed. Targeted bill support would protect people of all ages in financial hardship from future energy price spikes. We urge the UK Government to immediately launch a consultation to explore targeted bill support options with a view of implementing this by 2027 or 2028. Solutions to tackle fuel poverty are available, now is the time for action.”

Jon Sparkes, Chief Executive OBE of learning disability charity Mencap, said:   

“People with a learning disability simply must be protected from ever increasing energy costs, or they face being pushed into fuel poverty, unable to stay safe, warm and healthy. 

“The 1.5 million people in the UK with a learning disability are more likely to have unavoidably high energy costs because they may need to charge specialist or medical equipment or heat their homes for longer.   

“Shockingly, 44% of respondents to a Mencap survey told us that in the past they had not turned on their heating despite being cold.   

“With bill prices set to increase even further this Autumn, people with a learning disability and their families will continue to face these dangerous choices which leave them feeling anxious and afraid.  

“The Government must tackle these issues once and for all by introducing targeted energy affordability support for those who need it; this report offers pragmatic steps to how this could become a much-needed reality.” 

Amy Norman, Director of Energy and Environment at Public First, said:

“The welfare system is not an effective way to deliver energy affordability support. Public First analysis shows that the Warm Home Discount misses more fuel poor households than it helps. Building a better system of data-matched income targeting is necessary, but will take time even with swift action. In the meantime, the government must extend and uprate the Warm Home Discount to address the growing fuel poverty gap.”

Tom Marsland, Head of Policy at the national disability charity Sense, said:

“Unaffordable energy prices are taking a devastating toll on disabled people with complex needs and their families.

“Heartbreakingly, a young woman told us she was often housebound because powering her electric wheelchair cost too much. A mum, whose daughter can’t regulate her own body temperature, was forced to skip dinner every day to pay sky-high heating bills.

“And shockingly, Sense research has found two in five (41%) families with a disabled child can’t afford to keep their home warm enough during winter.

“As another winter approaches, the Government must introduce a social energy tariff to tackle fuel poverty.”

Notes to editor

[1] Difference between direct debit price cap prices from July-September 2025 and 2020/21 winter. Ofgem, Costs included in price cap level, May 2025

[2] Department for Energy Security and Net Zero, Annual fuel poverty statistics, 2025. Estimates in England suggest on average, the fuel poverty gap, which measures the amount by which energy bills would have to reduce to lift a household out of fuel poverty, now stands at £407, up from £223 in 2020.

[3] Closing the fuel poverty gap: a plan for targeted energy support report, Public First, August 2025

[4] Closing the fuel poverty gap: a plan for targeted energy support report, Public First, August 2025

[5] Scope, Disability Price Tag report, June 2025

Report available to view on Public First’s website.