Business Wednesday, May 13

More than 40 organisations have signed an open letter

Ministers are facing a stark two-week deadline to step in on soaring energy costs, as campaigners warn millions of households could be hit by sharp bill rises this summer.

With just 15 days to go before regulator Ofgem confirms the next price cap, charities say the Government must “go further and faster” to protect struggling families. Energy bills are forecast to jump by 18% in July, with a further 4% rise in September, piling fresh pressure on household finances already stretched by the cost-of-living crisis.

Crunch moment for bill payers

The warning comes ahead of Ofgem’s expected announcement on May 27, with any increase taking effect from July 1. Campaigners say the looming rise risks wiping out recent Government efforts unless urgent action is taken now.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “In just 15 days, households will learn how much their energy bills will increase.

“The Government should be focused on working out a package of support for vulnerable households and those in energy debt now, while urgently reforming electricity prices to bring down costs for everyone. Ministers must put aside the power struggle and get on with the day job.”

He added that breaking the link between electricity and gas prices and expanding support for green technology would be key to cutting bills long term.

Voters feeling the squeeze

The intervention follows polling by the Energy and Climate Intelligence Unit showing the cost of living is the top driver of voting intention, with energy bills the single biggest concern among voters.

More than 40 organisations – including Asthma + Lung UK, Friends of the Earth and Disability Rights UK – have signed an open letter urging the Prime Minister to act. They warn that without further intervention “millions of households will continue to suffer”.

READ MORE: Brits warned of prison sentence over energy cost-cutting move

‘Go further and faster’

Tessa Khan, from climate group Uplift, said: “Labour must not repeat the mistakes of past governments that failed to prepare this country for soaring energy costs driven by overseas wars. This government is going in the right direction, but clearly needs to go much further and faster to ensure everyone benefits. Now is not the time for half measures.”

The letter acknowledges recent steps – including shifting some green levies off bills and funding for home upgrades – but warns these could be “wiped out before households feel them”.

Four key demands

Extra financial support for households this winter, including:

  • An expanded Warm Home Discount
  • Action to tackle spiralling energy debt
  • A permanent break between electricity prices and volatile gas markets
  • Greater support for insulation, solar panels, heat pumps and electric vehicles

They are also pushing for a “Warm Homes Guarantee” to ensure lower bills and stronger consumer protections.

Pressure after ballot box backlash

Crossbench peer John Bird, who signed the letter on behalf of the Big Issue, said: “The British public punished the government at the ballot box last week for not going fast or far enough on cost-of-living pressures. People need to feel the change being promised in their everyday lives by the time winter rolls back in.”

Vulnerable households at risk

Charities warn the impact will be particularly severe for vulnerable groups. Jackie O’Sullivan of Mencap said: “Rising energy bills hit people with a learning disability hard… The Government has taken positive steps, but must act to tackle the crushing energy debt crisis.”

Frazer Scott of Energy Action Scotland added: “Far too many people are trapped in a vicious cycle of debt and despair… Essential energy is out of reach in an enduring crisis.”

And Jan Shortt of the National Pensioners Convention said older people were being forced to shoulder “ever-increasing” costs.

The intervention ramps up pressure on ministers ahead of the summer price cap decision with just days left to act before households find out how much more they will have to pay.

Last month, Chancellor Rachel Reeves signalled that any energy bill help later this year would be targeted at the poorest households, rather than a universal bailout of the type offered by Liz Truss when she was prime minister in the wake of the Russian invasion of Ukraine.

Share.
Exit mobile version