New price cap will push five million households into fuel stress

Posted at April 4, 2022 » By : » Categories : News » Comments Off on New price cap will push five million households into fuel stress

More than five million English households are predicted to fall into fuel stress, new analysis has suggested.

Fuel stress is defined as spending 10% or more of a household budget on energy bills.

The new price cap has pushed a typical annual dual fuel bill up by £693 to £1,971 a year.

According to a study by Resolution Foundation, families in the North and Midlands will see the highest levels of fuel stress.

It estimates that the ‘efficiency gap’ between a typical Energy Performance Certificate (EPC) band E and EPC C-rated home is currently £320 a year.

The think tank also predicts that this gap will jump to £380 a year when the price cap will be updated in October, affecting 4.2 million families.

Resolution Foundation suggests that if the October price cap brings more increases in energy bills, this would mean that 32% of households, an estimated 7.5 million families in England would be in fuel stress.

Analysts from Cornwall Insight had forecast the price cap would rise further in October, with a predicted increase of over £600 from today’s rise.

A recent report by charity Age UK estimated nearly 24% of older households in England would be under fuel stress with the newly arrived price cap.

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