Thousands of homes in Yorkshire and the Humber could miss out on crucial financial support to help cut their energy bills permanently.
National Energy Action (NEA) has raised concerns that funding cuts to the Energy Company Obligation (ECO) could leave households in Yorkshire and the Humber and across Great Britain without vital energy-saving improvements.
ECO, Great Britain’s longest-running fuel poverty scheme, has already delivered insulation and upgraded heating systems to 523,045 homes.
However, reports suggest that the Chancellor is considering reducing funding for the scheme, despite previous assurances that support for warmer homes would not be cut.
Dhara Vyas, chief executive of Energy UK, said: "Whilst there is a clear need to take action on bills immediately, this is a step in the wrong direction as it means millions of low-income households will lose the chance to cut their energy bills permanently.
"It’s wrong that those can least afford it are most likely to pay more for their energy because of draughty properties.
"There are other measures the Government could take which could bring down bills immediately and won’t come at the expense of desperately needed support for low-income households."
NEA estimates that around six million people are currently living in fuel poverty.
Although energy bills have fallen since the 2022/23 spike caused by rising global gas prices, they remain more than 80 per cent higher than they were four years ago.
Previous cuts to the ECO scheme have been shown to add billions of pounds to customer bills by missing out on long-term savings through improved home energy efficiency.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: "We obviously understand the urgent need to cut energy bills, but the Chancellor is in danger of making a grave error.
"Cutting funding for energy efficiency measures would undermine efforts to reduce energy demand, improve cold, damp homes and ease long-term pressure on the NHS."
The latest phase of the ECO scheme began in April 2022 and ends in March next year.
Over that period, it is estimated to have reduced energy bills by a combined total of £138.5 million per year.
Stew Horne, group head of sector intelligence and external affairs at the Energy Saving Trust, added: "The Energy Company Obligation provides vital support to make low income and fuel poor homes warmer and we urge the Chancellor to protect this crucial funding.
"Cutting this funding would be a significant setback for thousands of households already struggling with high energy bills."
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