Millions of people have been plunged into fuel poverty following an unprecedented £700-a-year rise in energy costs.

The biggest spike to household bills in living memory kicks in today, with the energy price cap rocketing by 54% to just under £2,000 a year.

The hike comes at the same time as a cost-of-living crisis that has sent National Insurance, inflation and council tax soaring while income tax thresholds are being frozen – leading to the biggest fall in living standards in 70 years.

Bills are set to rise at least 10 times faster than wages this year, leaving millions of families worse off.

Naturally, many people are wondering what support is available.

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Chancellor Rishi Sunak has announced some help for families but campaigners, trade unions and opposition MPs have said it does not go far enough.

Many charities are stepping in with their own support schemes amid fears millions of people will be forced to choose between ‘heating or eating’.

Here, Metro.co.uk explains everything you need to know about the fuel poverty crisis, and what help is available if you are struggling to pay the bills.

What is fuel poverty?

Fuel poverty is generally defined as when a household spends more than 10% of its income heating their home.

According to the End Fuel Poverty Coalition, two and a half million households with children are now in fuel poverty after the new energy price cap came into effect today.

That’s equivalent to two in five households, and it rises to more than half looking at single-parent homes.

Analysis by the Resolution Foundation also says that the number of households spending more than 10% of their budgets on gas and electricity in England will double overnight, from 2.5 million to 5 million.

What help is there to tackle fuel poverty?

The Government’s Energy Rebate Scheme – a £150 Council Tax rebate and a £200 discount for all billpayers – will go some way towards reducing the impact of the energy price cap.

In England, all households that are in council tax bands A-D will receive the £150 rebate. The one-off payment will be made directly by local authorities from April and won’t need to be repaid.

You can find out your council tax band by checking with your local authority or on the postcode checker.

All domestic electricity customers will also get £200 off their energy bills from October under the Energy Bills Rebate.

Energy suppliers will apply the discount from October, with the Government meeting the costs.

The discount will then be automatically recovered from people’s bills in equal £40 instalments over the next five years. This will begin from 2023, when global wholesale gas prices are expected to come down.

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However, campaigners warn that this support doesn’t go far enough in protecting low-income households from rising energy bills.

 The Resolution Foundation says 11% of the poorest fifth of households are ineligible for the council tax rebate because they live in Band E-H properties, while 59% of the richest fifth are eligible. Meanwhile, many landlords pay their tenants’ council tax and are under no obligation to pass the discount on.

In addition, council tax is going up by an average of £67 from today, swallowing up almost half the rebate designed to help with energy bills.

What charities are offering help with fuel poverty?

Many charities and local community groups are stepping in to plug gaps in government support.

Age UK is running programmes across the country to help older people stay safe, warm and comfortable in their own homes.

Their Warm Homes programme helps older people apply for benefits and offers energy checks to make sure homes are running efficiently, identifying where costs can be kept down.

The Rainy Day Trust is another charity offering help to struggling individuals or families.

The organisation offers:

• A boiler and heating system service by a qualified engineer to improve the efficiency of the heating system, make sure that it is ready for winter and reduce heating costs.
• The installation of a corrosion inhibitor into any water-based heating system that will reduce the sludge build-up in the radiators, improving water flow and reduce heating costs by up to 10-15%.
• Grants to help with utility bill arrears.
• Grants to buy heating oil in the summer when prices are lower ready for the colder winter weather, or payments made direct to utility companies.

You can apply for help here

Fuel vouchers

Fuel Bank is another organisation offering targeted support to people in fuel poverty. It has recently partnered with energy network companies across Britain, allowing it to provide same or next day emergency financial support to people struggling to top-up their prepayment gas and/or electricity meters.

Fuel Bank also offers advice to manage energy costs, support families out of crisis and find better energy deals.

It also provides vouchers through foodbanks and other organisations to make sure people have enough energy for heating and eating.

Each voucher has enough money to top up the customer’s prepayment meter for around two weeks.

You can only get a Fuel Bank voucher if you’re in need of food support. 

To qualify, you have to:

• be referred by a third party who has categorised you as someone in urgent – ‘crisis’ – need for food 
• have a prepayment meter 
• be classed as eligible for fuel as well as food vouchers 

You can find out more information here

Grants and benefits to help you pay your energy bills

There are a number of other grants and benefit schemes to help if you’re struggling to afford your energy bills or top up your prepayment meter.

You can use this grant finder on Ofgem to see if you are eligible for any.

These already existed before the record rise in prices.

They include:

• Winter Fuel Payment – a £100 to £300 fuel payment for people born on or before 5 October 1954 (over 60s)
• Winter fuel support scheme – a £200 annual payment for Welsh households in receipt of certain benefits.
• Cold Weather Payment – a £25 payment for every 7 days of very cold weather between November and March. 
• Warm Home Discount – a £140 discount for some people getting Pension Credit or some people in low-income household
• Household Support Fund – a funding package to help vulnerable households this winter. Contact your local council for advice and help on accessing the fund.
• Child Winter Heating Assistance – a £202 annual payment per disabled child and young person under 19 living in Scotland.

Citizens Advice also has some useful tips here if you are struggling to pay your bills.

Get in touch with our news team by emailing us at [email protected].

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