London Daily

Focus on the big picture.
Friday, Jun 20, 2025

Two-thirds of UK families could be in fuel poverty by January, research finds

Two-thirds of UK families could be in fuel poverty by January, research finds

Estimated 45m people will struggle to pay energy bills this winter with predicted rises in price cap

Two-thirds of all UK households will be trapped in fuel poverty by January with planned government support leaving even middle-income households struggling to pay their bills, according to research.

It shows 18 million families, the equivalent of 45 million people, will be left trying to make ends meet after further predicted rises in the energy price cap in October and January.

An estimated 86.4% of pensioner couples are expected to fall into fuel poverty, traditionally defined as when energy costs exceed 10% of a household’s net income, and 90.4% of lone parents with two or more children.

The new study by the University of York also shows huge regional variation in the cost of living crisis with 57.9% of households in the south-east predicted to be struggling with energy bills by January, compared with 70.9% in the West Midlands and 76.3% in Northern Ireland.


The figures come after inflation soared to a 40-year high of 10.1% – heaping more pain on households as the costs of food, energy and fuel continue to rise.

Asda chairman Stuart Rose criticised the government– which will fund a £400 universal energy grant in October as well as further support targeted at the poorest families – for a “horrifying” lack of action over inflation. “It’s going to be painful for everybody,” he told BBC radio.

“We have been very, very slow in recognising this train coming down the tunnel,” added the Tory peer.

The warning that 65.8% of all UK households will be in fuel poverty by January follows revised forecasts from the consultancy Cornwall Insight last week that annual energy bills could top £4,200 from January. Just the week before they had predicted the energy price cap was on track to rise to £3,615.


The consumer champion Martin Lewis described the latest forecast as “tragic news” and urged the “zombie government” to come up with an immediate action plan to help households.

Labour announced plans earlier this week for the energy price cap to be frozen at the current level, meaning that the expected rises in October and January would not go ahead, funded by a beefed-up £8bn windfall tax on energy company profits.

The party had faced some criticism for not focusing exclusively on the poorest households but Labour insiders suggested that the new University of York analysis showed that “squeezed middle” families would also be struggling to make ends meet.

The shadow climate change and net zero secretary, Ed Miliband, said: “These shocking figures show the full scale of the national emergency that could unfold unless the Conservative government acts to freeze energy bills.

“This is a crisis that will not just threaten the most vulnerable, but also the middle-income families and pensioners across the country, who will be despairing about how they are going to get through this winter. We simply cannot allow the British people to suffer in this way.”

The government has not proposed suspending the energy price cap rise, but it has announced an array of measures intended to help people pay their bills, and Boris Johnson has said he is certain that his successor will offer more help in the autumn, although neither candidate has yet set out a detailed plan.

In an interview with the Financial Times earlier this month, Truss appeared to rule out one-off payments to support those most in need. “I would do things in a Conservative way of lowering the tax burden, not giving out handouts,” she said when asked about energy bills.

But within days the Tory leadership frontrunner was stressing that she was offering people targeted support, with two of her key supporters, Iain Duncan Smith and Thérèse Coffey, the current welfare secretary, said to be encouraging her to use universal credit as a means of getting help with energy bills to those most in need.

Another Truss supporter, Simon Clarke, currently chief secretary to the Treasury, even hinted she might stop wealthy people receiving the £400 energy bills payout, which was announced in May by Sunak, the then chancellor, as part of a £15bn energy support package.

However, she has vowed to go ahead with plans to reverse the national insurance rise as her primary way of helping people with the cost of living crisis, even though critics say it would disproportionately benefit the better off and leave struggling middle-income families without any additional support.

At a leadership hustings in Belfast, Sunak stepped up his attacks on Truss’s tax plans, warning millions faced a “very tough time” this winter without direct support. He said the foreign secretary would be guilty of “moral failure” if she did not focus on the most vulnerable.

He added that steering the country through the winter as energy prices soared was the “most important” short-term issue.

“I think millions of people are at risk of a very tough time and I’ve been very clear that my plan is to support them,” he said.

But Truss instead insisted “taxes are too high and they are potentially choking off growth”, as she promised an emergency budget to tackle the cost of living emergency.

Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×