UK Households Still at Risk from Energy Price Spikes, MPs Warn

The Public Accounts Committee (PAC) has raised serious concerns over the UK’s energy security, warning that households remain vulnerable to future price shocks and spiralling debts.

In a new report, MPs warned that despite government efforts during recent energy crises, Britain’s electricity prices remain among the highest internationally. Consumer debt for gas and electricity has risen dramatically—from £1.8 billion in 2021 to an alarming £3.7 billion in 2024. The report highlights ongoing worries that millions of people across the UK still struggle to heat their homes adequately, forced to choose between warmth and essentials like food.

PAC chair, Sir Geoffrey Clifton-Brown MP, praised previous government schemes for acting swiftly but emphasised that more targeted support is urgently needed to protect vulnerable consumers. “Sharp moves in energy prices in the future must find Government fully prepared to issue targeted and effective support, with those most in need the focus of that support,” he stated.

During the energy crisis, around 238,000 additional households were plunged into fuel poverty. MPs pointed out that existing measures were not always effective in reaching vulnerable groups. For example, schemes supporting households without direct domestic electricity supply saw poor uptake, meaning many who needed help missed out. The current winter support schemes also exclude certain disabled groups, despite their higher energy needs.

The committee also criticised the largely universal nature of previous schemes, noting significant wastage as financial support went to households that did not require help. Despite these issues being clear for nearly three years, the Department for Energy Security and Net Zero (DESNZ) remains at an early stage in developing a more targeted approach for future support.

Renewable energy is at the heart of the government’s long-term strategy to reduce energy bills, yet MPs warned there has been little progress on plans for cheaper electricity tariffs at specific times or on shifting environmental levies from electricity to gas bills. This lack of progress continues to leave consumers vulnerable to future price fluctuations.

The PAC also raised concerns about grid capacity during periods when renewable energy generation is low—highlighting a near-critical incident in January 2025 when supply margins briefly dropped, sparking fears of blackouts. MPs called on the government to clarify its contingency plans, emphasising the importance of stable power generation sources, including nuclear, to secure supply during periods of calm weather.

Additionally, the committee stressed the need for stronger support services for people in debt to their energy suppliers, with clearer advice and assistance to help them manage their energy costs and avoid further financial distress.

If you’re concerned about rising energy bills or struggling with energy debts, free support may be available through government-backed schemes designed to improve your home’s energy efficiency and lower your bills.

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