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Better targeted support needed to help 7.7m households struggling with fuel bills, research finds

MORE than a third of England’s households will likely struggle with fuel bills this winter — including most families with children, according to an independent think tank.

The Resolution Foundation examined the nationwide extent of fuel stress — defined as needing to spend over 10 per cent of income after housing costs on heating.

Its analysis, published today, found that 7.7 million families — some 37 per cent of all households — suffered from fuel stress in England in 2023/24. 

And it discovered single-parent households were the hardest hit, with more than three in four (77 per cent) likely to experience fuel stress this winter.

The foundation also found that most couples with children are expected to struggle, with some 56 per cent likely to experience fuel stress.

It highlighted that this is over twice the rate seen among pensioner households, in which one in four are impacted. 

Labour's decision to introduce means-testing for the Winter Fuel Payment (WFP) will lead to over one million low-income pensioners losing the crucial benefit that helped them make ends meet, it said.

While creating hardship for many older people, the Resolution Foundation argues that the WFP is poorly targeted overall.

The think tank has called on Chancellor Rachel Reeves to introduce support for all households experiencing fuel stress in her upcoming budget.

Resolution Foundation economist Alex Clegg said: “Couples with children are more than twice as likely to experience fuel stress as pensioner households, so any new support should not be limited to pensioners.”

The foundation has suggested expanding the cold weather payments scheme, which currently grants a £25 payment when temperatures drop below freezing for a week.

Currently those on certain benefits, such as jobseekers’ allowance and pension credit, are eligible. 

The foundation also called for the qualifying temperature to be raised and eligibility to be widened to support low-income pensioners who no longer qualify for WFP, as well as working age people and families.

Mr Clegg added: “Looking beyond this winter, the government should prioritise developing a social tariff and investing in energy efficiency for our homes. 

“This would help to ensure that vulnerable families are insulated from future energy shocks, whatever their age or circumstances.”

A government spokesperson said: “We will do everything possible to support vulnerable families this winter - including with the £150 Warm Home Discount expected to support three million eligible households, while around 1.3 million households in England and Wales will continue to receive up to £300 in Winter Fuel Payments.”

 

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