Nearly 8 million people struggled with energy bills in 2022

The government has released new data on fuel poverty in the UK, with figures showing that nearly eight million people struggled to pay energy bills last year.

7.39 million (30.3%) of households in England had to spend more than 10% of income on energy costs in 2022, up from 4.93 million (20.5%) in 2021.

There was also an estimated 13.4% of households experiencing fuel poverty last year, up from 13.1% in 2021, according to the government. 

This figure is expected to reach 14.4% in 2023, with the average fuel poverty gap – the reduction in fuel costs needed for a household to not be in fuel poverty – being about £443.

Data also revealed that the government is no closer to meeting its 2030 fuel poverty target for as many homes as reasonably practicable to be in homes with a minimum energy efficiency rating of Band C.

Currently, 52.8% of all low income households live in home with a rating of band C or better and this is projected to rise to just 53.5% in 2023.

Connor Schwartz, warm homes campaigner at Friends of the Earth, said: ‘The government’s narrow definition of fuel poverty is farcical because it discounts anyone living in a reasonably well insulated home. With bills as unprecedently high as they have been in the last year, even many of those in better insulated homes have had to make the impossible choice between heating and eating.

‘The government’s own figures suggest nearly eight million households were struggling with the price of their bills last year – that’s 50% higher than the year before. It’s unconscionable that so many are unable to afford to properly power or heat their homes.’

Schwartz said the government should focus on improving energy efficiency through rapid insulation and prioritise those who need it most to protect them from high energy costs.

‘This is the quickest and cheapest way to lower bills permanently, help keep people warm and well, and cut the harmful emissions that cause climate change,’ he said.

Energy regulator Ofgem announced the new energy price cap yesterday and warned that energy bills were unlikely to reduce, as the government’s Energy Price Guarantee (EPG) is set to end in April.

Fuel Poverty action is campaigning for a whole new approach to energy pricing structures under a new system called Energy For All. This would ensure every household gets enough energy to cover its needs free of charge.

Ruth London from Fuel Poverty Action, commented: ‘Public anger is intense and support is growing for a whole new system, Energy For All.

‘This would mean no standing charges, a free band of essential energy so that no one freezes to death with excess energy use charged at a premium.

‘This would be funded by windfall profits and end to fossil fuel subsidies with accelerated energy efficiency and renewables expansion to reduce cost of the proposals.’

Photo by Arthur Lambillotte