Millions of families could be driven into fuel poverty as new energy price cap takes hold Apr 01, 2022

new energy price cap

With the energy price cap rising from £1,277 to £1,971 per year from today, annual energy bills could increase by £693 for those on default tariffs and £708 for customers on prepayment meters.

According to fuel poverty charity National Energy Action, an estimated 8.5 million people across the UK will be driven into fuel poverty, an increase of 5.3 million from 2019.

In order to deal with this increase, Chancellor Rishi Sunak has released a £150 house rebate as well as a £200 loan.

Unfortunately further help will not be available until autumn as the Chancellor said: “Clearly, it’s very difficult to sit here today and speculate on what happens to energy prices, with the biggest impact on living standards coming in the autumn.

“Let’s wait until we get there and then we can decide on the most appropriate course of action, but I don’t think anyone today knows what that appropriate course of action ought to be.”

However, right now help can be found through available schemes such as the Warm Homes Fund or ECO scheme for the installation of energy saving measures.

Duncan McCombie, CEO of YES Energy Solutions said: “With the 54% increase in price cap many homeowners are looking for a way to save money on their energy bills.

“Due to this price hike millions of families who may have been able to pay their energy bills comfortably could soon be fuel poor, including half a million children.

“That’s why we are urging the Government to intervene, however, there is funding we can provide for home upgrades for those receiving means tested benefits.”

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