6.3 million households are now in fuel poverty, the highest number since records began. That’s roughly one in five homes across the UK, according to analysis published by LabourHub and reported by multiple outlets. The figure has doubled since 2021, when the energy price cap was £1,138 a year. Today it stands at £1,928, and the cap will rise again in October.
As reported by LabourHub, the crisis is worsening fastest in low-income areas and poorly insulated homes. The government has announced some support, the Energy Price Guarantee and the Warm Home Discount, but these are sticking plasters on a broken system. The real fix is structural: making homes cheaper to heat.
Who qualifies, and who doesn’t
Fuel poverty in England is defined as a household spending more than 10% of its income on energy, with the remaining income below the official poverty line. The latest data from the Department for Energy Security and Net Zero shows 13.1% of English households now meet that threshold. In Scotland and Wales, the figures are higher, around 25% and 23% respectively, because definitions differ and housing stock is older.
The catch is that most government help is means-tested. The Warm Home Discount gives £150 off electricity bills for low-income households. The Energy Price Guarantee caps unit rates, but not total bills. Neither touches the root cause: leaky walls, single glazing, and gas boilers running at 60% efficiency.
What it costs a typical 3-bed semi
Energy Saving Trust estimates that a typical 3-bed semi-detached home in the UK uses 12,000 kWh of gas and 2,900 kWh of electricity per year. At current price cap rates (24.5p/kWh for electricity, 6.24p/kWh for gas), that’s an annual bill of roughly £1,450 for gas and £710 for electricity, total £2,160, assuming no standing charges. With standing charges added (about £330 a year), the real figure is closer to £2,490.
Improving the EPC rating from D to C, through cavity wall insulation, loft insulation to 270mm, and double glazing, can cut that by about 25%. That’s roughly £600 a year saved. A heat pump, installed under the Boiler Upgrade Scheme (£7,500 grant), could save another £100-£200 annually versus a gas boiler, depending on the property’s heat loss.
Grants and timelines
The Great British Insulation Scheme offers free or subsidised insulation to low-income households and those in EPC bands D-G. Applications are open through local councils and energy suppliers. The Boiler Upgrade Scheme is available to all homeowners in England and Wales, regardless of income, until 2028. Solar panels, not covered by the scheme, can pay back in 8-12 years at current electricity prices, faster if you use a battery.
But timing matters. The October price cap rise will add roughly £12 a month to a typical bill. Households on prepayment meters, who already pay more, will be hit hardest. Ofgem has proposed capping prepayment premium from 2025, but that’s not law yet.
What homeowners can do now
Check your EPC rating on gov.uk. If it’s D or below, apply for the Great British Insulation Scheme through your energy supplier. For heat pumps, get quotes from MCS-certified installers before the October price rise, as demand will spike. And switch tariff, the price cap is not the cheapest deal on the market. Fixed deals are starting to reappear at 5-10% below the cap.
The government must act, as LabourHub argues. But while Westminster debates, the most effective action is in your own loft, walls, and heating system. Every kilowatt-hour not used is a kilowatt-hour not paid for.
Frequently Asked Questions
Eligibility depends on your property's EPC rating (D-G) and household income. You can apply through your energy supplier or local council. The scheme covers cavity wall, loft, and solid wall insulation. Check your EPC on gov.uk first.
Yes, but the savings depend on your current heating system and home insulation. A typical heat pump saves £100-£200 a year versus a gas boiler at current cap rates. The £7,500 Boiler Upgrade Scheme grant makes the upfront cost comparable to a new gas boiler.
