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Closing the fuel poverty gap: a plan for targeted energy support
This morning, Ofgem released the new energy Price Cap figure. And the costs of energy have gone up again. The energy Price Cap is the maximum amount energy suppliers can charge you for each unit of energy you use. It also caps the standing charge if you’re on a standard variable tariff. However there is no upper limit to what households pay. If more energy is used, you will pay more.
While this does not mean everyone will definitely face higher bills, it does say that the ongoing energy crisis shows no signs of slowing down. Millions of people on low incomes, older people and disabled people cannot afford the energy they need to live healthily. Disabled people are unable to afford to power vital medical equipment. Families on low incomes are going without food. Older people are having just one hot meal a week.
Energy bills are £700 a year more on average than they were 5 years ago. The system is broken. The Warm Home Discount (WHD) is nowhere near enough. It misses more households that need it than it reaches. And it is due to end in April 2026. The Warm Home discount is a one-off payment to support households with their energy costs. This year, it is £150. You can find out more about the Warm Home Discount on the government’s website to see if you’re eligible.
That is why Scope, alongside 5 other major charities and leading energy company E.ON, have worked with Public First on a report for government. The report looks at how the government can support with discounted energy bills for those who need it most. And it calls for the government to act now and make sure there is no gap in support from April 2026. They must increase support to match the average fuel poverty gap, which now stands at over £400 a year. And longer term, bring in a much more targeted, sustainable system of support with energy costs for all those who need it.
What are we asking for?
1. The extension and expansion of the Warm Home Discount (WHD)
The WHD is due to end in April 2026. We’re calling on the government to extend the WHD while they work on building better systems for targeted support. And to make sure more people can access this support.
The government should make sure that the WHD is available to more people. Those on disability benefits must be able to access this vital support.
The government should also increase the payment amount to £400. This would mean support matches the current fuel poverty gap.
Additionally, the government must consider:
- A £100 booster payment to those who receive the WHD but pay their energy bills by Standard Credit.
- A £100 booster payment for those who receive disability benefits.
Standard Credit customers pay for energy once they receive the bill, so only after the energy is used. This is different from direct debit payment where an annual cost is estimated and then split over 12 months, paid monthly or quarterly. For pre-payment meters, money is added to the account and used when there is credit.
These booster payments would support with the extra costs these households face.
The extension and expansion of the WHD would offer a smooth transition to a payment-based energy discount (or social tariff) by 2027 to 2028.
2. Discounted energy bill support to be in place by 2027 to 2028
The social tariff would be available to households:
- Where at least one household member receives benefits. This must include means-tested and non-means-tested benefits. And must include disability benefits.
- Who earn less than £30,000 a year, but do not receive benefits.
For eligible households, the social tariff would provide:
- Payments for households that need them most. This would start at £700 for those on the lowest income. And would go down to £0 for those earning more than £30,000 a year.
- £100 booster payments for disabled households, regardless of whether they receive benefits.
- £100 booster payments for low-income or disabled households paying by Standard Credit
How will it help?
Committing to this energy support would bring up to 1.13 million households out of fuel poverty. And build a system where energy prices do not force people to make impossible decisions. No one should have to choose between heating and eating.
- Since 2022, Scope’s Disability Energy Support (DES) service, has seen a 69% increase in client debt. Debt has now begun to rise in summer months. Comparing August 2023 to August 2024, monthly DES consumer debt increased by 143%.
It is vital that Ofgem and energy suppliers continue to:
- Track and report on consumer debt
- Share best practice (between suppliers) for supporting consumers
- Offer repayment plans when consumers are beginning to struggle
- Make consumers aware of the Priority Services Register
- Refer consumers to relevant charities and advice organisations
When will it happen?
We know that for a lot of people, energy support cannot come soon enough. Households are facing another winter of impossible decisions.
The government committed to consulting about plans for energy support this year. But they have not yet said when exactly this will happen. We are asking that they open this consultation to the public by autumn 2025. So that they can ensure there is support in place for winter 2026.
Making sure that everyone who needs it can access the support will take time. The government may have to change some legislation to make this possible. Because of this, we are asking them to prioritise making these changes in 2026.
If these changes happen next year, support could be in place for winter 2027. We want to make sure the government get this done as soon as possible.
But we also know that even one more winter without support can be hard. If you’re disabled and struggling with your energy bills, you can reach out to Scope’s Disability Energy Support Service.