MORE than 12.1 million households are struggling with the cost of their energy bills and cannot afford a price increase tomorrow, campaigners warn.
Two fifths of households are currently finding it difficult to pay their energy bill and are spending more than 10% of their income on gas and electricity, according to the University of York.
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Of this group, almost 5 million spend more than 20% of their income on energy, which means they are in fuel poverty.
The news comes ahead of the new energy price cap being announced tomorrow.
Industry regulator Ofgem changes the price cap for households every three months, largely based on the cost of energy on wholesale markets.
Energy bills are expected to rise from £1,720 per year to £1,737 a year tomorrow – an increase of 1%, according to forecaster Cornwall Insight.
Read more on energy bills
But campaigners have warned that even a 1% increase in energy bills will pile further pressure onto households already struggling to make ends meet.
The figures also reveal the areas where families will be hardest hit if the price cap rises.
Northern Ireland and the West Midlands have the highest poverty rates, followed by Scotland and the North East.
In comparison, the lowest rates are in Wales, the South West and Eastern England.
Meanwhile, households with children are more likely to be already struggling with their energy costs, as are people who rent their homes.
Worryingly, 3.2million of those in fuel poverty are pensioner households.
Of this group, 964,000 are in deep fuel poverty, which means they spend more than 20% of their income on energy.
As households fall behind on their energy bills, the amount they owe to their supplier has hit an all-time high of £4.15billion.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “We are now approaching the fifth winter of the energy bills crisis and the time for tinkering with the price cap is over.
“Ofgem is right to launch a comprehensive review of how energy system costs are allocated, but simply shifting budgets between standing charges and unit rates will not solve the problem.”
He added that a typical household is still paying 67% more for their energy than just five years ago.
Meanwhile, Tessa Khan, executive director at climate action organization Uplift, said: “The primary cause of the years of persistently high energy prices is the UK’s dependency on gas to generate electricity and heat our homes – which at its peak was three times higher than pre-crisis levels and remains almost double what it was.”
Help with energy bills
If you are struggling with your energy bill then there is plenty of support on offer.
For example, the Winter Fuel Allowance offers £300 to pensioners to help cover the cost of their heating during colder months.
Around 75% of pensioners are expected to receive the support this year, after Labour’s u-turned on the tighter eligibility criteria it announced last winter.
Elsewhere, struggling families can get access to money through the Household Support Fund (HSF).
Each council in England has been allocated a share of the £742million fund and can distribute it to residents in need.
Exactly how much you can get and how the money will be paid depends on your council and situation.
The scheme has been extended multiple times with the latest round running between April 2025 and March 2026.
Meanwhile, thousands of households will receive the Warm Home Discount, which is worth £150.
The discount is given to households on a low-income or claiming certain benefits, such as Universal Credit.
It is not paid as cash and is instead applied as credit to your energy bill.
If you are falling behind on your energy bill then you can also get help through your energy supplier.
British Gas has announced a £140million support package to help customers facing financial hardship.
This includes free energy grants, tailored support for households and small business customers and funding for advice centres and charities.
It has also launched You Pay: We Pay, which gives households the opportunity to have their payments matched by British Gas for a period of six months.
Elsewhere, Octopus Energy’s £30million Octo Assist fund is designed to help customers keep on top of their energy bills.
It includes free electric blankets, Winter Fuel Payments and standing charge waivers.
Meanwhile, EDF’s Customer Support Fund gives grants and help to vulnerable customers who are struggling with energy debt.
It can support customers with electricity or gas bill debts, and provide essential white goods such as a fridge or cooker.
How do I calculate my energy bill?
BELOW we reveal how you can calculate your own energy bill.
To calculate how much you pay for your energy bill, you must find out your unit rate for gas and electricity and the standing charge for each fuel type.
The unit rate will usually be shown on your bill in p/kWh.The standing charge is a daily charge that is paid 365 days of the year – irrespective of whether or not you use any gas or electricity.
You will then need to note down your own annual energy usage from a previous bill.
Once you have these details, you can work out your gas and electricity costs separately.
Multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type – this will give you your usage costs.
You’ll then need to multiply each standing charge by 365 and add this figure to the totals for your usage – this will then give you your annual costs.
Divide this figure by 12, and you’ll be able to determine how much you should expect to pay each month from April 1.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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