Commons committee calls for urgent action to cut energy costs and support struggling households
The UK’s energy system needs urgent reform to protect households from unaffordable bills and mounting debt, MPs have warned in a major new report.
The House of Commons Energy Security and Net Zero Committee says that while wholesale energy prices have fallen, the cost of gas and electricity for consumers remains far higher than before the crisis. Millions of households, it warns, are still struggling to heat and power their homes as winter approaches.
The cross-party report, Tackling the Energy Cost Crisis, sets out a series of recommendations for the UK Government to help lower bills, reduce energy debt, and ensure fairer long-term pricing for vulnerable and low-income households.
The MPs say that although temporary measures such as the Energy Bills Support Scheme and the Energy Price Guarantee cushioned the blow for many people, they were only short-term fixes.
Even with these schemes, average energy costs remain about 75 per cent higher than in 2021, leaving many households “on the brink” and energy debt at record levels.
The committee warns that this continuing affordability crisis risks becoming “the new normal” unless stronger, better-targeted support is put in place.
Social tariff and debt relief among recommendations
Among the committee’s key recommendations is the creation of a new social tarif, a permanent, discounted energy rate for people on low incomes or with specific vulnerabilities.
The MPs argue that a targeted tariff would be more effective than temporary support schemes, offering long-term security for those most at risk of fuel poverty.
They also call for an Energy Debt Relief Scheme to help households facing record levels of unpaid energy bills.
Total domestic energy debt has now passed £4 billion, reflecting the cumulative strain of high prices over multiple winters.
The report urges ministers to ensure any debt relief programme works alongside tighter regulation of energy suppliers, including restrictions on forced pre-payment meter installations and clearer rules on how customers in debt are treated.
MPs also recommend a reform of the Warm Home Discount scheme, which they say is too narrow in scope and excludes many households in need of support.
They propose expanding eligibility and simplifying the process for claiming help.
The committee calls for improvements to the Cold Weather Payment and Winter Fuel Payment systems, arguing that they no longer reflect modern fuel costs or usage patterns.
The MPs say the current arrangements fail to reach enough people and do not give recipients confidence that they can afford to heat their homes safely.
Better coordination between agencies
The report highlights the need for stronger coordination between government departments, local authorities and energy suppliers.
It says data-sharing barriers currently prevent targeted help from reaching people quickly.
By linking existing records from departments such as Work and Pensions, HMRC and local councils, the committee says, support could be delivered more efficiently and directed to those most in need.
Improved data could also help identify areas of persistent fuel poverty, allowing home energy efficiency programmes to focus on the least efficient properties.
Making the market fairer
The MPs’ findings also address how to prevent similar crises in the future.
The report says reforms must ensure that all consumers benefit when wholesale prices fall, not just those who can afford fixed-rate deals.
It recommends that Ofgem review standing charges on bills, which have risen sharply and now make up a significant portion of household costs, hitting low-use and low-income customers hardest.
The committee further urges the government to ensure that the transition to cleaner energy sources is delivered fairly, warning that the cost of decarbonisation must not fall unevenly on those least able to pay.
Energy efficiency and insulation
Improving the energy efficiency of homes is described as one of the most effective long-term ways to reduce household costs.
The MPs note that the UK continues to have some of the oldest and least efficient housing stock in Europe, leaving residents exposed to high bills.
They recommend expanding insulation and retrofit programmes and providing clear, long-term funding commitments.
This, they say, would reduce costs for households and create skilled jobs across the country.
National Energy Action response
The charity National Energy Action (NEA), which campaigns to end fuel poverty, has welcomed the committee’s findings and its recognition that stronger intervention is needed.
Matt Copeland, Head of Policy and Public Affairs at NEA, said: “National Energy Action welcomes the Committee’s report and its clear recognition that further action is needed to provide deeper, better targeted support.
“We also welcome the Committee’s focus on reducing energy market debt—this must go hand in hand with efforts to make ongoing costs more affordable for financially vulnerable households.
“We look forward to the Government’s response and urge it to prioritise further practical steps to protect those most at risk.”
NEA has long called for a social tariff and urgent action on energy debt.
The charity says that while the government has recognised the need for reform, progress has been slow, and it is urging ministers to publish a clear timetable for change before the next winter heating season.
The committee’s report comes as Ofgem prepares its next price-cap review, due in January.
Although wholesale energy costs have fallen from their 2022 peak, households still face an average annual bill of about £1,700, compared with pre-crisis levels of around £1,000.
According to the regulator, more than 3.4 million UK households are now in energy debt, and consumer groups warn that figure could rise as heating demand increases during winter.
The End Fuel Poverty Coalition, of which NEA is a member, estimates that 6.5 million households in the UK are living in fuel poverty.
The committee concludes that government support must now move beyond short-term crisis responses and focus on creating a more affordable and resilient energy system.
It describes this as a “once-in-a-generation opportunity” to tackle the structural causes of high energy costs, including poor home insulation and volatile market pricing.
Local picture
In North Wales, energy affordability continues to be a major concern for many households.
Charities and advice services report that demand for emergency fuel vouchers and heating support remains high, particularly among older people and families on low incomes.
Welsh Government schemes such as the Nest programme and the Discretionary Assistance Fund continue to provide practical help, including home insulation, heating repairs and short-term crisis payments.
Campaigners say these programmes play a vital role but cannot solve the problem alone.
They argue that wider UK-level reforms—such as a national social tariff—are essential to deliver lasting change and prevent people from falling back into fuel poverty each winter.
Next steps
The UK Government is expected to issue its formal response to the committee’s report later this winter.
In the meantime, National Energy Action says it will continue working with MPs, regulators and local authorities to push for practical measures that can help households in immediate difficulty.
Mr Copeland added: “We urge the Government to treat this as a priority. Every winter that passes without reform risks pushing more people into hardship. Affordable energy should be a basic right, not a privilege.”
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