Energy bills expected to rise again in April – and it could be ‘soul destroying’ for struggling families

Energy bills rising again could be “soul destroying” for vulnerable people, campaigners have warned, urging the government to ensure that “those suffering are not abandoned”.

Ofgem increased the energy price cap to £1,738 in January, meaning that the average UK household will pay just under £145 for their energy bills each month.

It is expected to rise further in April, to an estimated £1,784.91, according to the consultancy Cornwall Insight. This will be an increase of just a few pounds for most households, but experts fear that even the smallest price rises will impact low-income families in the aftermath of the cost of living crisis.

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Caroline Simpson, a spokesperson for Warm this Winter, said: “UK bill payers are at their wits end spending over £700 more on energy than they did before the energy crisis, while just 20 companies have made £483bn in profits since it started three years ago. The idea that more increases could be on the way is just soul destroying.”

Energy bills are much lower than they were at the height of the cost of living crisis, when the government introduced an energy price guarantee and capped bills at £2,500 a year for a typical household.

But the support has also been stripped back – there is no longer an energy rebate which gave people a £400 discount on their bills in the winter of 2022/2023, and cost of living payments for low-income households were also stopped.

Since the Labour government came into power, the universal winter fuel payment has also been restricted to elderly people in receipt of pension credit – meaning that millions of pensioners have lost out on a payment worth up to £300 to help wit their energy bills.

Campaigners recognise that one-off payments are not the solution to fuel poverty in the UK, but they have called on the government to build a strategy to bring down the energy prices and provide targeted help.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “As households continue to suffer as a result of our dependence on volatile gas prices, the to-do list for the government in 2025 gets even longer. Ministers must set out plans to tackle affordability and discrimination in the energy market.”

Francis said this includes securing affordable energy bills through a social tariff, which would see discounted energy bills for vulnerable consumers – including elderly people, disabled people, carers and people who are claiming benefits.

He also called for the government to address issues around smart meters and prepayment meters, while ensuring all households can access the best tariffs and support.

“At the same time, ministers must deliver longer-term market reforms that prioritise consumers and not energy firms, while also delivering on the funding necessary to provide energy efficiency programmes that target the fuel poor and ‘worst first’ for insulation and retrofits,” Francis said.

Simpson added that 2024 was a “turning point” for getting the UK off expensive oil and gas, improving the country’s energy security and stabilising energy prices. The Labour government has shown a commitment to making Britain a “clean energy superpower”.

“But 2025 will need to see this momentum continue and much more done by the government to bring down the cost of energy bills for good. The government also needs to ensure that those suffering now are not abandoned. This means more support for households through a social tariff in time for next winter,” Simpson said.

Warm this Winter is also urging the government to invest £13.2bn in a Warm Homes Plan to insulate and ventilate the nation’s draughty homes, which Simpson claimed is the “quickest and cheapest way to bring down bills permanently”.

Peter Smith, the National Energy Action director, added: “The energy crisis is not going away. The government needs to make energy more affordable for the most vulnerable households, possibly through an expanded warm home discount, or a new energy social tariff. To combat the rising tide of debt, vulnerable customers will need a help-to-repay scheme that accelerates how quickly money is paid back or writes it off entirely.

“However, we know the best way to reduce fuel poverty and make energy bills more affordable in the long term is to invest heavily in energy efficiency. The UK government’s Warm Homes Plan must be primarily aimed at those most in need. The full amount of energy efficiency investment promised in the Labour Party’s manifesto is needed if we are to meet legal fuel poverty goals by the end of this decade.”

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