The Fuel Bank Foundation’s 2025 Fuel Crisis report highlights the harsh reality for the six million people living in fuel poverty. It isn’t just about turning the heating off or choosing between heating and eating; it reaches into every part of life. Families are switching off fridges, relying on tinned food, and missing out on proper nutrition. Children can’t charge devices to do homework, and parents feel cut off from support. Even simple things like watching TV together or keeping up with laundry become impossible. For those on prepayment meters, the situation is even harsher. When the money runs out, the power goes off, and the basics many of us take for granted stop.
As someone who has worked in energy for over a decade and knows how to find the best tariffs or shift usage to off-peak times, this was a stark reminder of what the fuel crisis and lack of energy security really means for millions of households with limited options.
What More Can We Do in 2026?
Retrofitting our existing housing stock is critical to reducing the impact of both price increases and overall energy bills. The Government’s Warm Homes Plan needs to be released and implemented within the first quarter of 2026. We need to ensure those in need can benefit from warmer, more affordable homes next winter, while also maximising the sunnier months for homes that could benefit from solar panels and batteries.
The government’s decision to stop ECO funding and transition into the Warm Homes Plan has understandably been met with mixed reviews, but with change comes opportunity. Once the plan is released (and we urge the government to do this sooner rather than later), it’s a chance for the sector to get it right and rebuild its reputation after past failings. Homes under the Warm Homes Plan must achieve the right outcomes and be delivered to a high standard, without leaving those in greatest need worse off. This is an opportunity for the sector to come together, take learning from ECO and SHDF/Warm Homes, and deliver a programme that truly brings homes out of fuel poverty.
Wave 3 projects under the Warm Homes Social Housing Fund have been slow to start due to the previous wave overruns and procurement issues. If we’re serious about tackling fuel poverty and providing homes that are affordable, comfortable, and healthier, retrofit must become business as usual, relying less on grant funding and focusing more on blending models that use private finance and existing budgets more wisely. Encouragingly, more landlords are starting to look at portfolio investment strategies holistically, combining retrofit, maintenance, home comfort, and new build strategies to create better homes for more people. Let’s see more of this in 2026.
Policy and Support Measures
The government’s expansion of the Warm Home Discount (WHD) to 2.7 million households has helped many this winter. We urge the government to go further and extend WHD to households without a direct relationship with an energy supplier, so customers on Energy-as-a-Service models can also benefit.
The removal of ECO levies from April 2026 will reduce monthly bills for households; however, this will be offset by the increased TNUoS Supplier costs. These costs are expected to increase by £2.7bn to £7.5bn from April 2026. Suppliers will have to pass on these increased costs to their domestic and non-domestic customers, adding around 5% to electricity bills.
After years of partial oversight, the Government has confirmed the timetable for heat network regulation. Consumer advocacy and redress began on 1st April 2025; the first tranche of formal rules starts this month on 27 January 2026, with Ofgem oversight and new consumer protections.
For many households already struggling with energy debt, any aid they receive often disappears into existing arrears, leaving them still unable to afford energy. To address this, Ofgem has proposed a Debt Relief Scheme, to write off energy debt accrued during the height of the energy crisis (April 2022–March 2024). In its first phase, the proposed scheme would fully clear eligible debts for customers on means-tested benefits who have shown basic engagement with their supplier, with no cap on the amount written off. A second phase would extend support to other households in genuine difficulty, assessed through income and expenditure checks. The cost of the scheme would be spread across all domestic customers, adding an estimated £3.23–£5.13 per year to dual-fuel bills, a modest increase compared to the growing debt burden if no action is taken.
Looking Ahead: Clean Power and Energy Security
Huge steps forward in flexibility, such as the flexibility roadmap and the implementation of P415 and P483 codes, help pave the way for much wider implementation of battery energy storage system at lower cost. What does this mean in practice? Homes with batteries and EVs can earn more by “flexing” at the right times, and when more of us flex, everyone benefits from a cheaper, more efficient system, an outcome the Government’s Clean Flexibility Roadmap is explicitly targeting. We also expect continued acceleration in battery installations as hardware costs fall, and flexible revenue streams mature.
In the long-term, the UK Government’s commitment to delivering clean power will transform household energy security. As more homes adopt green technologies such as heat pumps, solar PV, and battery storage, they will become less reliant on volatile fossil fuel markets. This shift means greater resilience against price spikes, more stable energy costs, and the ability to heat and power homes more affordably. However, recent statements by the Conservative Party and Reform UK signal potential rollbacks on clean energy support, particularly threats to withdraw subsidies and Contracts for Difference, which could undermine investment and leave the UK exposed to foreign gas markets. That makes it absolutely vital that the current government’s momentum is maintained, ensuring that long-term infrastructure, incentives, and green policy frameworks are protected so households can continue to benefit from affordable, low-carbon energy.
The Role of Landlords in Improving Energy Security
In the short term, landlords can play a critical role in improving residents’ energy security. Beyond upgrading homes with efficiency measures, landlords have the unique ability to aggregate their housing portfolios to negotiate better energy rates, delivering immediate cost savings and long-term stability. This is especially important for social housing residents, who have no choice over the home they live in, no agency to improve its performance, and no say in which measures are installed or when. While energy supply remains the resident’s responsibility, their ability to access home upgrades and greener electricity depends entirely on their landlords’ actions, making proactive engagement from housing providers essential.
Another innovative approach being explored by some landlords with Healthy Homes Hub and Switchee, is the Warm Rents model, which proposes including a guaranteed level of heating, such as maintaining homes at 18°C, as part of the rent. This concept could help tackle fuel poverty by removing the uncertainty of energy costs for residents while ensuring homes remain warm enough to prevent issues like damp and mould. By embedding fair heat as standard, landlords can provide healthier living conditions and reduce long-term maintenance costs, while residents gain security and comfort without the stress of fluctuating bills. Trials like Warm Rents show how rethinking the relationship between rent and energy could deliver both social and environmental benefits.
My Closing Thoughts…
The challenges posed by rising energy prices and fuel poverty are complex, but not insurmountable. By combining immediate measures like debt relief, Energy-as-a-Service models, and retrofit with long-term strategies such as Warm Rents and accelerating the transition to clean power, we can create a future where energy is affordable, secure, and sustainable for everyone. This will require collaboration among government, landlords, energy providers, and sector innovators. 2026 must be the year we move from short-term fixes to systemic change, ensuring that no household is left behind in the journey toward fair, reliable, and low-carbon energy.
Author: Ciara, Head of Operations, Energy Services
