Average annual bills are forecast to fall to £1,641 from April 1, but campaigners warn fuel poverty will continue year-round with no further support planned after winter.
Millions of households will still struggle to afford their energy bills this year despite a forecast fall in the price cap this week, a national fuel poverty charity has warned. Energy regulator Ofgem is due to announce its next price cap on February 25, with bills expected to fall from April 1.
The Fuel Bank Foundation predicts the cap will drop by £117 for a typical household paying by direct debit, cutting average annual bills from £1,758 to £1,641. For prepayment meter customers, bills are forecast to fall from £1,711 to £1,594.
Ofgem changes the price cap for households every three months by setting a maximum price energy suppliers can charge people in Scotland, England and Wales for each kilowatt hour of energy they use.
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However, it’s crucial to remember the price cap does not limit a household’s total energy bills – people still pay for each unit of gas and electricity they use which means the more you use, the higher the bill and the less you use, the lower the costs.
Still £500 higher than before the crisis
While the reduction will be welcomed, the charity says families will still be paying around £500 more each year than before the energy crisis.
When the price cap was introduced in 2019, average bills stood at £1,137. They fell to £1,042 in October 2020 before soaring during the energy crisis.
Matthew Cole, chief executive of Fuel Bank Foundation, said: “Any reduction in energy bills is welcome… but we cannot ignore the bigger picture here and we shouldn’t pretend this solves fuel poverty. It doesn’t.
“People are still paying hundreds of pounds more than they were just a few years ago and the cost of living has risen across the board. For many households, energy simply remains unaffordable.”
Fall driven by policy change
The charity said the expected drop is largely driven by the removal of policy costs from bills, rather than a fall in wholesale energy prices.
It warned this risks masking the scale of the problem facing low-income households.
There will also be no further targeted energy support for struggling families after April, with eligible households having already received the Warm Home Discount.
Fuel Bank Foundation said this creates a “dangerous gap”, arguing that fuel poverty does not disappear when winter ends.
Last year, the charity supported almost 60,000 households between June and the end of September 2025, with one in five of those seeking help during the summer months.
Energy debt still impacting families
The organisation also warned that many households are still carrying energy debt built up during years of sky-high bills.
Even with a £117 reduction, campaigners say that will not undo the financial damage already done.
Fuel Bank Foundation is calling for longer-term reforms, including changes to standing charges, support for prepayment customers, pausing debt recovery during winter and greater investment in home energy efficiency.
Matthew Cole added: “We need a system that recognises energy as essential, not optional. Short-term fixes aren’t enough. Without meaningful, long-term support, fuel poverty will remain a daily reality for millions.”
If you are struggling with fuel bills, contact your energy supplier as soon as possible to ask about payment plans, hardship grants or emergency credit.