Personal Finance. Money. Investing.

“Fuel Stress” Expected To Hit 6 Million In The UK Amid Soaring Energy Costs

According to recent research, the number of UK households affected by “fuel stress” is set to treble to over 6 million when the energy price cap comes into effect on 1 April.

Posted: 17th January 2022 by
Finance Monthly
Share this article

“Fuel stress”, or “fuel poverty”, is a term used when at least 10% of a household’s budget is spent on energy bills, indicating that energy costs are unaffordable. 

New research by the Resolution Foundation released on Monday suggests that, while fuel stress is currently at 9%, it is expected to jump to 27% due to the energy price cap rising by more than 50% on the back of rising fuel prices

In the North East of England and the West Midlands, levels of fuel stress are expected to be the highest at 33% and 32% respectively. Levels of fuel stress in pensioner households are expected to hit 38%, and 35% among those living in local authority housing. 

On 7 February, Ofgem will announce the new price cap level, which is expected to be increased to around £2,000.  

The Resolution Foundation has called on ministers to do more to support lower-income families through the benefits system. Alternatively, the foundation recommended that an additional payment based on the Warm Homes Discount Scheme (WHD) could be pursued. 

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram