Surge in prices means 465,000 will experience fuel poverty this Winter

Data science firm Outra reports the UK now has 4.29 million households experiencing fuel poverty, up from 3.83 million.

As winter takes hold, the impact of a January price cap increase has left more than 465,000 households in the UK grappling with fuel poverty, according to figures from data science firm Outra.

The 12.2% rise in households affected by fuel poverty, compared to October 2023, is attributed to the energy price cap increase on January 1. Now totaling 4.29 million households, the UK has seen a significant surge from 3.83 million, with an average increase of £94 per year on energy bills.

Birmingham, South Yorkshire, Newcastle, and Glasgow are among the areas most affected, each witnessing a substantial increase in households entering fuel poverty.

Birmingham has the largest number of new UK households entering fuel poverty with an extra 19,000, followed by South Yorkshire with 17,200 more, Newcastle with another 12,100, and Glasgow with an 11,900 increase.

Outra’s analysis suggests that while inflation has slightly eased, the cost-of-living crisis continues to burden British households.

The looming challenge for many is navigating sacrifices to make ends meet amid increased energy costs during the coldest weeks of winter. The data also highlights the vulnerability of “high-risk” households, anticipating a 19% rise in fuel poverty cases by October 2023.

The firm’s chief data and technology officer, Peter Jackson, said:

“Our household level data analysis shows that, while fuel prices have dropped from their peak, financial pain felt by those struggling with a sharp rise in household bills is far from over.

“With this 5% rise in energy costs for the average household and the coldest weeks of winter potentially still ahead of us, many will need to make sacrifices if they have any hope of making ends meet.”

With housing costs escalating and financial pressures intensifying, the struggle for many is far from over, emphasising the need for comprehensive solutions to address the widening crisis.

A Resolution Foundation report said 38% of people have reported a worsening financial situation, which is more than twice the number of those who reported an improving one (15%).

The report said that an increase in benefits and wages may help some people, but those who have not benefited from the rise may be suffering “disproportionately”.

The Foundation predicts that by October 2023, “severe levels” of food insecurity levels may affect a fifth of people, this is almost three times the number of people affected before the pandemic.