The depth of fuel poverty blighting Britain’s poorest households is expected to worsen because of energy price rises this year, according to official forecasts.
The Labour party said it was a national disgrace that the government was failing to turn the tide on fuel poverty.
A key measure known as the average fuel poverty gap – between households’ energy bills and what they can afford to pay – narrowed slightly in 2016.
But the Department for Business, Energy and Industrial Strategy forecasts that the gap will expand by 9%, up from £326 in 2016 to £357 in 2018.
The department said the growth would be “mainly driven by increases in fuel prices”.
All the big six energy suppliers, and many of the newer challenger firms, have recently raised prices, blaming an increase in wholesale costs. German supplier E.ON last week raised its prices for the second time this year.
The proportion of households living in fuel poverty in 2016 rose for the second year in a row to 11.1%, or around 2.55m homes.
Fuel-poor households are defined as those with above average energy costs where their income would fall below the official poverty line after paying to heat and light their home.
The prospect of deepening fuel poverty comes despite a price cap for millions of vulnerable households, which started in April 2017.
“It shows that some households in a risk of fuel poverty are not yet benefiting from the safeguard tariff [price cap],” said Peter Smith, director of policy and research of fuel poverty charity National Energy Action.
A wider price cap for millions more households on default tariffs is due to take effect by the end of the year.
Rebecca Long-Bailey, the shadow business secretary, said: ‘‘It is a national scandal that ripoff energy price rises are increasing the number of people forced to live in fuel poverty.”
“While energy bills continue to rise, the Conservatives’ energy price cap is still not in place and is not expected to be until the end of the year, over 18 months after the promise was made.”
Amelia Womack, deputy leader of the Green party, said: “No one should have to choose between putting food on the table or heating their home, and it is outrageous that despite knowing people are living with these choices the government hasn’t done anything to address the issue.”
Both parties called for a concentrated effort to insulate the homes of people living in fuel poverty.
A business department spokesperson said: “This government is driving £6bn into tackling the root cause of fuel poverty through energy efficiency upgrades installed in some of our poorest homes over the next 10 years.”
