Support planned for UK households struggling with winter energy bills

Ministers have pledged to help families struggling with gas and electricity bills this winter after energy bosses warned consumer debt had risen to more than £3 billion.

Ministers met energy bosses on Wednesday to discuss ways to support struggling families in the coming cold months, as Labor came under fire for scrapping universal winter fuel payments for pensioners.

Executives from 10 UK energy suppliers – including British petrol boss Chris O’Shea – met Energy Minister Miatta Fahnbulleh along with consumer groups, charities and regulator Ofgem.

The Guardian understands there is “broad agreement around the table” to help consumers tackle the “worrying” debt on their energy bills, which has reached £3.2 billion in total.

In the short term, the government is expected to consider requests to double the support given to households through the Heated Homes Discount, a scheme that gives £150 to bill payers in Britain who receive some benefits in winter.

Ministers also heeded calls from industry leaders to lift the burden on low-income households by removing green taxes on energy bills and moving them to general taxation.

Energy companies and consumer groups are expected to help government officials set up working groups to draw up detailed proposals next month, ahead of Rachel Reeves’ October budget.

In the longer term, ministers are expected to consider a discounted “social charge” for gas and electricity to make energy bills more affordable for Britain’s most vulnerable households.

The UK’s biggest energy providers have been called to a meeting after Ofgem announced a 10% cut in energy bills last week to discuss “ambitious commitments” to help households manage this winter.

From October, the new price cap will increase the average annual dual-fuel energy bill to £1,717 a year, up £149 from £1,568, which has been in place since July.

The government is facing criticism over its decision to cut winter fuel payments for 10 million of the wealthiest pensioners, which Reeves announced last month would help plug a £22 billion “hole” in the public purse.

Before the meeting, Phanbulle said, “It is imperative that energy companies do their part to ensure that more households do not fall into debt and that those already in arrears are adequately supported.”

He added: “We hope all energy suppliers will spread the word that anyone concerned about their situation can always contact their supplier and need not suffer in silence. It is important that consumers facing debt – or at risk of falling into debt – get the support they need from their suppliers.”

Despite a “strong sense of political will” to tackle the problem of mounting energy debt, no concrete plans emerged from the meeting, industry sources said.

One said: “Overall it was a very constructive meeting and it was very clear that ministers are committed to tackling the problem of rising energy debt. They recognize that this is not just an energy issue but part of the wider economic pressures that households face.