Charities and leading energy firm call for action as devastating 'fuel poverty gap' doubles in 5 years

Disabled people’s energy costs are often higher than those of non-Disabled people because there is a need to run the heating more (to cope with lower mobility or prevent severe illness due to weakened immune systems) and to charge essential medical and mobility equipment.

The analysis compiled by Public First on behalf of the coalition, is called “Closing the fuel poverty gap: A plan for targeted energy support” and it found the fuel poverty gap - the amount by which energy bills would have to reduce to lift a household out of fuel poverty - has doubled since 2020, and now stands at over £400 a year.

Other shocking findings included in the analysis show that:

• Annual energy bills are, on average, £700 more expensive compared to five years ago – and expected to remain high as evidenced by recent price cap rise
• The Government’s Warm Home Discount is set to end in April 2026 with no proposals on future energy support
• Major charities and an energy company are warning without government action, the fuel poverty crisis will deepen for millions on low incomes, including Disabled and older people

Public Firsts report estimates that around 3.7 million British households are in fuel poverty, meaning they spend over 10% of income after housing costs on energy.

The group which commissioned the report includes SCOPE and MENCAP, and is calling for an urgent increase in support. While the Government’s Warm Home Discount is set to provide £150 this winter for some households, the report reveals it is missing more fuel-poor households than it reaches. Only 33% (1.2 million) of fuel poor households will be eligible for the expanded Warm Home Discount scheme, compared to around 67% (2.5 million) of fuel poor households that will miss out on much-needed support. And the Warm Home Discount is possibly due to end in April 2026, with no confirmation of what will replace it.

The report followed the announcement that the new energy price cap will come into effect in October. Ofgem announced that the energy price cap will rise by 2 per cent for a typical household in England, Scotland and Wales. The energy price cap sets the maximum limit suppliers can charge people for their energy use.

The group of charities are urging Government to ensure there is no gap in support from 2026. They are also calling for an increase in support to match the average fuel poverty gap of more than £400 a year, with top-up payments for Disabled people and more targeted support with energy bills for all those who need it.

Longer term, the charities are calling for a much more targeted, sustainable system of support with energy bills for all who need it. The report lays out how a payment based on income and indicators of high energy need, such as disability, payment type, and energy use, could be much better targeted and lift more than a million households out of fuel poverty.

Chris Norbury, Chief Executive at E.ON UK, said: "Millions of households are still struggling with unaffordable energy bills, and the current approach isn’t reaching those who need help the most. It’s vital we find a fair and lasting solution that recognises affordability as a long-term challenge, not a short-term crisis.

"A more targeted approach to supporting low-income and vulnerable households, funded appropriately across government and industry, would go a long way toward delivering the enduring change needed to lift people out of fuel poverty and make energy genuinely affordable in the future."

Dan White policy and campaigns officer at Disability Rights UK and co-lead of the Disability Poverty Campaign Group, said: “Another winter looms and another casualty list of Disabled people suffering in cold and dark homes will occur yet again, with the system apathetic yet again.”

“We know, year after year that unaffordable energy prices are taking a devastating toll on Disabled children and adults and   their families and carers. It’s exhausting, depressing and completely avoidable.”

“The Government must tackle the issue of fuel poverty once and for all for Disabled people. The evidence must now compel them to introduce an energy social tariff, and to implement urgent extra measures to ensure that Disabled people survive another tough and destructive winter.”

Read the full report here.