English fuel poverty figures highlight failure to tackle energy bills crisis

MARCH 28,2025

The Government has published the latest English fuel poverty figures for 2024. They show that in 2024, there were an estimated 11.0% of households – 2.73 million – in fuel poverty in England under the Low Income Low Energy Efficiency (LILEE) metric. 

More older households in fuel poverty

Among households where the oldest resident is aged over 75, there has been a slight increase in the numbers in fuel poverty (10.1% in 2024 up from 9.7%).

The average fuel poverty gap for England in 2024 (the reduction in energy costs needed for a household to not be in fuel poverty) was estimated at £407.

The data also shows the number of households who are required to spend more than 10% of their income (after housing costs) on domestic energy.  In 2024, 36.3% of households (8.99 million) exceeded this threshold, up from 35.5% in 2023 (8.73 million). 

Jonathan Bean from Fuel Poverty Action, commented: “The latest Government fuel poverty statistics expose the complete failure of Government and Ofgem to tackle the energy affordability and fuel poverty crisis.

“A shocking 36.3% of households in England are unable to afford the inflated energy prices we are forced to pay due to a rigged energy market and obscene profits. Many of us are forced to survive the winter huddled under blankets and go without hot water.

“The Government tries to hide the extent of fuel poverty by excluding the millions of us on low incomes struggling with high energy prices based on an often flawed Energy Performance Certificate rating.  But even using its own distorted figures, the Government has failed to address fuel poverty, and is expecting it to actually rise next year.”

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented: “The measure which is most sensitive to the rising cost of living is creeping up. This shows just how devastating the ongoing cost of living crisis is and what a mistake it was for the Chancellor to axe Winter Fuel Payments.

“It is now high time that the Chancellor finally commits in full to the £13.2bn Warm Homes Plan promised in the Labour Manifesto. This will ensure that millions of people can stay warm every winter. 

“But given that energy bills continue to rise – and even the Office of Budget Responsibility has said that increases in gas prices are harming the economy – the Government must go further. The Chancellor must provide help to those struggling in fuel poverty now, not continue with cuts in vital support to older and disabled people.

“We need a government willing to invest in the solutions to the cost of living crisis – and the future of the country.”

Progress has “flatlined”

Dr Matthew Scott, Senior Policy Officer at the Chartered Institute of Housing, said:
“Everyone should be able to live in a safe, warm home. However, the latest fuel poverty statistics published this morning show that progress essentially flatlined in the final years of the previous Government.

“Through its Warm Homes Plan and updated fuel poverty strategy, the new Government has an unmissable opportunity to reverse this trend. By building on its welcome investment into the Social Housing Fund and Local Grant programmes, the Government can reduce energy bills and improve the health and wellbeing of millions of people before the end of the decade.

“CIH continues to call for the government to allocate the full £13.2 billion to its Warm Homes Plan in the forthcoming spending review, utilising the expertise and experience of social housing providers as key delivery partners.”

Jonathan Bean added: “Government energy efficiency schemes are failing badly as they have only  taken only 0.2% of households out of fuel poverty, even if changes to the Warm Home Discount Scheme are included.  At this rate it will take until 2070 to hit the Government’s 2030 Fuel Poverty Target.   

“One reason for the failure of retrofit schemes is that they have not focussed on the homes with the highest fuel poverty incidence, conversion flats (18.8%).  Instead schemes are biased towards those in detached houses, who have the lowest fuel poverty incidence (7.3%).  A totally new retrofit strategy is needed if the Government is serious about tackling fuel poverty.  

“Electric-only households have double the rate (20.7%) of fuel poverty than gas (10.0%) which highlights the urgency of bringing down inflated electricity prices that are currently quadruple the price of gas.” 

Ofgem’s “cruel tariffs”

Earlier this month, the End Fuel Poverty Coalition was among the charities and consumer groups that warned that Ofgem’s proposals for standing charge reform could see many households end up worse off if they accept one of the proposed tariffs. 

In a submission to the official consultation on the issue,  the Coalition described how consumers would only need to use half of the “typical domestic consumption values” before their bills increased if on a “zero standing charge” tariff.

It argued that the proposals did not move costs away from energy bills and simply “rearranged the deckchairs”, that they presented a flawed version of rising block tariff for consideration and did not contain wider proposals for reform previously put forward.

The National Pensioners Convention also warned the Ofgem consultation on standing charges that their proposals for reform were ‘not good enough’ and that these cruel tariffs should be scrapped.

In its letter of submission before the consultation closed this month, it also told the industry regulator of its disappointment that it has made no effort to reduce energy firms’ inflated, multi-billion pound profits.

Profits up

This week, Ithaca was the latest company to announce what Warm This Winter spokesperson Caroline Simpson called “obscene profits”. She added: “What makes it worse is that Ithaca is holding the UK back by making millions in North Sea drilling while investing nothing in UK renewable energy.

“Polling shows time and again UK bill payers don’t want ‘drill baby drill’ they want clean power that also gives us much needed energy security. That is why it is crucial as a country we continue to ramp up our production of homegrown, renewable energy which is abundantly available and the quickest form of power generation to get up and running. And we need to stop the oil and gas profiteers who use the UK bill payers as a cash machine.”

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