Fuel Poverty: Warm Homes Support Scheme

1 in 5 households are in fuel poverty, yet two-thirds receive no government support. Our report with So Energy reveals the true scale of the crisis and proposes actionable solutions to better target assistance. Download the full report below.

Fuel poverty remains a critical issue that suppliers cannot tackle alone, so urgent government action is needed. With 1 in 5 households in fuel poverty, and three-quarters of these households receiving no government support, we hope this report sparks serious discussions on delivering meaningful relief before next winter.
Ian Barker

Ian Barker

Managing Partner

Warm Homes Support Scheme

Two-thirds in fuel poverty not receiving government support

Fuel poverty is affecting more households than ever before, yet current government support schemes fail to provide adequate relief. Our report with So Energy, launched in Parliament, presents a comprehensive analysis of the crisis and offers a roadmap for more effective solutions.

  • 1 in 5 households are fuel poor – Our analysis reveals that 5.4m households struggle to afford their energy bills, with an average fuel poverty gap of £550, totaling £3bn across Great Britain.
  • The true scale of fuel poverty is uncertain – A lack of a unified definition and complexity in measurement obscures the full impact, but it's clear that millions face hardship.
  • Current schemes missing those most in need – The Warm Home Discount (WHD) and Energy Company Obligation (ECO) fail to reach up to 4m fuel-poor homes, highlighting the need for better targeting.
  • A new Warm Homes Support Scheme is needed – A restructured bill support mechanism, at little or no extra cost to the exchequer, could provide tiered relief to those most affected.
  • Private sector investment could be leveraged – Financial incentives could help shift some of the burden from the public sector, providing additional funding options for tackling fuel poverty.

This report provides in-depth research and actionable recommendations on improving fuel poverty interventions. Download it here to gain insights into potential policy improvements and funding solutions that could make a meaningful difference.

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About BFY Group

BFY Group is one of the UK’s fastest-growing management consultancies, trusted by leading energy and utilities organisations, as well as investors supporting the sector. We build strong partnerships with our clients, working practically to tackle their toughest challenges, realise opportunities, and achieve lasting results. Since our founding in 2004, we’ve been proud to remain an independent, privately owned firm based in Nottingham, working with clients throughout the UK.

Our deep expertise is what sets us apart. We bring in leading talent directly from the sectors we serve, equipping them with the consulting skills they need to make a lasting impact with our clients. Our team’s experience spans all levels including senior leadership, with backgrounds at companies like: E.ON Group, British Gas, EDF, Scottish Power, Smart DCC, Ofgem, and the Retail Energy Code Company.

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So Energy

About So Energy

So Energy is a customer-centric, tech-led energy supplier offering fair tariffs and green products, now serving over 300,000 households across Great Britain. So Eneryg are uniquely placed in the market, as one of the last challengers left after the wave of supplier collapses during the energy crisis, but one that is backed by ESB’s considerable resources and expertise.

Warm Homes Support Scheme

Addressing fuel poverty

Fuel poverty remains a critical issue that suppliers cannot tackle alone, so urgent government action is needed. With 1 in 5 households in fuel poverty, and three-quarters of these households receiving no government support, we hope this report sparks serious discussions on delivering meaningful relief before next winter. Ian Barker Managing Partner (BFY Group)

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