London Daily

Focus on the big picture.
Tuesday, Sep 15, 2026

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
UK Doctors Warn Expanded Pharmacy First Scheme Could Put Patients at Risk
British Airlines Cut Short-Haul Capacity as Jet Fuel Costs Rise
UK News Publishers Forecast 40% Search Traffic Drop as AI Overviews Expand
Axel Springer Wins Approval for £575 Million Daily Telegraph Acquisition
London Mayor Sadiq Khan Opposes Heathrow Third Runway Over Climate Targets
Scotland, Wales and Northern Ireland Leaders Hold Summit Seeking Greater Autonomy
UK Energy Price Cap Set to Rise to £1,723 in October
UK Treasury Warns Middle East Conflict Is Threatening Economic Growth
Labour Moves to Retrospectively Cap Overseas Political Donations After Reform UK Funding Surge
HMRC Warns Nearly Seven Million Adults Are Unclear About State Pension Entitlements
UK Parliament Passes Sovereign Grant Reform Before Conference Recess
British Rail Passengers Gain Automatic Right to Switch Operators During Disruptions
Burnham Hosts Downing Street Business Summit as UK Fiscal Pressure Builds
Labour Government Moves to Challenge £72 Million in Reform UK Crypto Donations
UK Advertising Industry Warns Wider Junk Food Rules Could Put £1 Billion in Media Spending at Risk
Cornwall Opens Devolution Talks With UK Government Over Transport and Local Services
UK Parliament Considers Sovereign Grant Reform Setting Royal Funding at £99.9 Million
Trades Union Congress Calls for Income-Based Energy Tariff Funded by Higher Bank Levy
UK Prime Minister Rejects Second Scottish Independence Referendum
House of Lords Begins Scrutiny of Bill to Lower UK Voting Age to 16
Anthropic Says Claude Was Exploited in Weapons-Related and State-Linked Cyber Activity
Institute of Directors Urges UK Government to Avoid Business Tax Increases in Autumn Budget
Rising Gilt Yields Cut UK Fiscal Headroom to About £13 Billion Ahead of Budget
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
UK Government Promises Clearer Student Loan Guidance After Repayment Backlash
Charities Warn Unpaid Carers May Die Before Receiving Government Compensation
Dover Unrest Prompts Review of UK Counter-Extremism Strategy
Celtic Summit Leaders Reassert Right to Pursue Independence From UK
NHS Records Busiest Summer on Record Amid Severe Heatwaves
Harrods Faces Potential £150 Million Compensation Bill Over Al Fayed Abuse Claims
UK Parliament Opens Debate on Landmark Assisted Dying Legislation
Metropolitan Police Investigate Reform UK Over Alleged Foreign Electoral Donations
UK Economy Expands 0.4% in July as AI Investment Boosts Activity
Bank of England Signals Caution on Rates as Inflation Pressures Persist
Tesco Alerts Police After Scammers Use Its Branding in AI-Generated Fraud
Lindy Cameron Appointed First Female Permanent Under-Secretary at UK Foreign Office
UK Government to Rewrite Student Loan Guidance After Mis-Selling Criticism
Welsh First Minister Warns Andy Burnham Government to Respect Devolution
Trump’s Falkland Islands Remarks Trigger New Diplomatic Tension With Britain
Reform UK Receives Record £72 Million Donation From Cryptocurrency Billionaires
UK Bans Imports From Israeli West Bank Settlements and Sanctions Supporting Institutions
Bayeux Tapestry Draws Large Crowds at British Museum
Cuts to International Aid Raise Concerns Over Fragile Overseas Health Systems
UK Airlines and Logistics Operators Adjust Capacity as Fuel Costs Rise
UK Mortgage Arrears Edge Lower in Second Quarter
UK Government Advances New Devolution Offers for English Councils
UK Parliament Begins Debate on NHS Governance and Single Patient Record Reforms
Andy Burnham Launches Number 10 North Devolution Initiative
UK Parliament Rejects Assisted Dying Bill for Terminally Ill Adults
UK Bans Goods From Israeli Settlements in the Occupied West Bank
×