London Daily

Focus on the big picture.
Friday, Mar 20, 2026

Energy price cap rises: Households will be in 'deep peril' and older people will be 'badly shaken' by increase in bills, charities warn

Energy price cap rises: Households will be in 'deep peril' and older people will be 'badly shaken' by increase in bills, charities warn

Chancellor Rishi Sunak has announced a £9bn package following word from Ofgem, the energy regulator, that prices are set to soar by 54% for 22 million households from the beginning of April, adding £693 to the annual costs of a typical household.

Households will be left in "deep peril" and older people will be "badly shaken" by the rise in energy bills, charities have warned.

On Thursday, energy regulator Ofgem announced prices are set to soar by 54% for 22 million households from the beginning of April, adding £693 to the annual costs of a typical household.

Later in the day, Chancellor Rishi Sunnak announced a £9bn package, including a one-off repayable £200 discount and a £150 rebate on council tax bills, and £144m to councils to support vulnerable households amid the surging energy prices.

However, the government's plan has been met with criticism with one fuel poverty charity describing it as "woefully inadequate".

'We need deep, targeted support"


National Energy Action (NEA) said the increases will mean the cost of heating an average home will have doubled in 18 months while numbers in fuel poverty will soar from four million to 6.5 million households across the UK in just six.

"These energy crisis measures are woefully inadequate and will leave those on the lowest incomes and in the least efficient homes in deep peril, NEA chief executive Adam Scorer said.

"We needed deep, targeted support for the most vulnerable. We have shallow, broad measures for all. That simply does not work."

"The rebates on bills and council tax are not sufficiently targeted, too small, and too complex," he added.

"We expect the government will have no choice but to return to the issue of spiralling fuel poverty and another price rise later this year. By then they'll be playing catch-up and great harm will already have been done."

According to an analysis by the Joseph Rowntree Foundation, even after the deferral scheme for energy bills and the council tax discount are taken into account, families on low incomes will spend on average 16% of their incomes after housing costs on energy bills.

This compares to 5% for middle-income families.

"Already people are not spending money because they do not have money to spend," Newham resident, Naveem Choudry told Sky News.

"It has already affected businesses and plus energy bills going up, which has very badly affected business. People are already scared because they don't have no money, they have no future.

Rise in energy prices caused by China and 'colder than usual winter' - Sunak


After announcing the government's £9bn support package, Chancellor Rishi Sunak attributed the record rise of energy prices to China pushing up global prices and the UK's "colder than usual winter".

Writing in The Sun, he said: "One (factor) is the steep rise in demand for gas in places such as China, which has pushed up global prices.

"Another is the fact that we have had a colder than usual winter so we have used up more of our own stores of gas here at home.

'Help is targeted at those who need it most," said the chancellor


"There are no two ways about it: (the £693 annual increase per household on average) ... is a big hit for people to take and I don't underestimate it one bit."

He continued: "We made a difficult decision last year that in order to tackle the unacceptable backlogs caused by the pandemic, as well as to pay for vaccines and integrate our health and social care system, we would have to raise the money to do so.

"We can't borrow for wholesale reform and we were upfront about that from the beginning."

Mr Sunak continued to say the "help is targeted at those who need it most, while also providing some support for those in the squeezed middle".

'We are gonna have to start considering using food banks'


For low-income families with children, the measures announced by the government will mitigate just 36% of the increase in their bills on average in comparison to 59% for low-income single-adult households, analysis by the Joseph Rowntree Foundation found.

A 47-year-old mother said the rise in fuel prices may mean she and her family have to start using food banks.

Melanie, who lives with her partner and six-year-old daughter in Flintshire, told the PA news agency she is "absolutely horrified" by the 54% increase in the price cap.

"If things keep rising the way they are, we're going to be in a terrible predicament where yeah, we are gonna have to start considering using food banks," she said.

"We pride ourselves on every time we do a food shop, we buy at least one thing for the food bank - the tables are going to turn where we're having to possibly ask them for help after April."

'It is disgusting' - Age UK calls for more help


Meanwhile, Age UK has urged the government to urgently rethink their plan, warning older people on low and modest incomes are "bitterly disappointed".

"With average energy bills now set to rise by a whopping £693 per year - and almost certain to increase further in a few months' time - the support the chancellor has announced simply does not go far enough," Caroline Abrahams, charity director at Age UK, said.

"It will still leave many of these pensioners facing energy costs surging by an extra several hundred pounds that they cannot afford to pay."

She added: "Tough and stoical though they typically are, many older people will be badly shaken by the news they are hearing today.

"There's no doubt it will lead to many more turning their heating down or off altogether because they will know these price surges and the chancellor's inadequate response signals a crisis in their personal finances, with no end apparently in sight."

One woman, 85-year-old Pauline Thorley, told Sky News: "I think it's disgusting... what can we do about it? Nothing."

Asked if the energy rise makes her worried about her own bills, she said: "It does, I'm on my own but I've still got the same heating as everybody else."

Newsletter

Related Articles

0:00
0:00
Close
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
UK VAT Decision Opens Path for Potential Refunds to U.S. Biopharma Firms
UK and Canada Advance ‘Middle Power’ Strategy to Shape Global Influence Beyond Superpowers
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Holds Back on Hormuz Escort Mission While Continuing Talks with Allies
TrumpRx Pricing Platform Faces Scrutiny as Some Medicines Remain Costlier Than in the UK
UK, Netherlands and Finland Explore Joint Defence Investment Bank to Boost Military Capability
Deadly Meningitis Outbreak in Kent Raises Alarm as Cases Surge and Emergency Response Expands
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
UK Prime Minister Urges Continued Focus on Ukraine Amid Escalating Iran Conflict
UK Introduces New Safeguards to Shield Lenders from Bank Run Risks
UK Promotional Products Market Surpasses £1.3 Billion as Demand Strengthens in 2025
Reeves Pushes for Deeper UK-EU Economic Ties to Revive Growth
UK Security Adviser Saw No Imminent Iranian Nuclear Threat Days Before War Erupted
France Signals Warm Welcome for UK Return to EU Single Market Amid Renewed Cooperation Talks
UK Defence Official Criticises Boeing Over Delays to E-7 Wedgetail Programme
UK Urged to Secure Quantum Talent as Minister Warns Against Repeating AI Setbacks
UK Mayors Set to Gain New Spending Powers Under Reeves’ Fiscal Devolution Plan
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
UK Set to Introduce Steel Tariffs of Up to 50 Percent in New Industrial Strategy
European Governments Decline Trump’s Call to Send Warships to Reopen Strait of Hormuz
Fears Over Iran Conflict Weigh on UK Consumer Confidence
Starmer Says UK Working With Allies on Hormuz Shipping Plan After Trump Raises Pressure
Iran War and Energy Shock Shake Britain’s Economy and Political Debate
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
King Charles and Queen Camilla Share Personal Tributes to Their Mothers on UK Mother’s Day
Prince William Honors Princess Diana with Mother’s Day Tribute
UK Economy Stalls in January as Households Cut Back on Eating Out
×