Britain's poorest households twice as exposed to energy costs as richest, new ONS data reveals

the lowest income decile, compared with just 30 for households in the highest income decile.

The figures indicate that energy accounts for twice as much of the expenditure basket used to measure household costs among the poorest tenth of households compared with the richest tenth. 

The findings come just weeks before millions of households face another increase in energy costs. 

From 1 October 2026, Ofgem's energy price cap will rise by 4%, taking the annual bill for a typical household paying by Direct Debit for gas and electricity from £1,663 to £1,723, an increase of around £60 a year. 

Around 20 million households on standard variable tariffs are covered by the cap, meaning the increase will arrive just as many households begin using their heating more regularly through autumn and winter.

The rise could be particularly significant for the households identified in the ONS data as having greater relative exposure to energy costs.

The Households Most Exposed to Energy Costs

According to the ONS Household Costs Index expenditure basket for 2026, the lowest-income households are the most exposed to energy costs.

• Lowest-income 10%: 60 parts per thousand

• Second-lowest income 10%: 57 parts per thousand

• Retired households: 55 parts per thousand

• Outright homeowners: 48 parts per thousand

• All households: 42 parts per thousand

• Non-retired households: 38 parts per thousand

• Mortgage/other owner occupiers: 33 parts per thousand

• Private renters: 31 parts per thousand

• Highest-income 10%: 30 parts per thousand

The weightings represent the proportion of household expenditure allocated to electricity, gas and other fuels, expressed as parts per thousand within the ONS Household Costs Index expenditure basket for 2026.

The figures also reveal a significant generational difference. 

Energy has a weighting of 55 for retired households compared with 38 for non-retired households, meaning its relative weighting is around 45% higher among retired households.

Housing tenure produces another striking divide. 

For social and other renters, electricity, gas and other fuels have a weighting of 57, compared with 31 among private renters. That makes the relative weighting around 84% higher for social and other renters.

October Price Cap Rise Could Hit Energy-Exposed Households Hardest

The new ONS figures take on added significance ahead of the 4% energy price cap increase due to take effect on 1 October. 

Ofgem has confirmed that the typical annual bill for a household paying by Direct Debit for gas and electricity will rise from £1,663 to £1,723, an increase of around £60 a year or £5 a month. 

Around 20 million households on standard variable tariffs are expected to be affected by the new cap. However, the ONS data suggests the impact of higher energy costs could be felt particularly strongly among households where energy already represents a greater proportion of expenditure. 

The lowest-income 10% of households have an electricity, gas and other fuels weighting of 60, twice the 30 recorded among the highest-income 10%.

Retired households also have a substantially higher weighting of 55, compared with 38 among non-retired households, while social and other renters have a weighting of 57, compared with 31 among private renters. 

The October increase is also being driven predominantly by gas. Ofgem says gas bills are expected to rise by 8%, while electricity bills will remain broadly stable following the temporary removal of VAT from domestic electricity. 

For households with gas central heating, the increase will therefore arrive just as colder temperatures typically lead to greater heating use. 

Rob Nezard, heating expert at UK Radiators, said: 

"The headline figure is a 4% increase, but the ONS data shows why that won't necessarily be felt equally across the country. 

Lower-income households, retired households and social renters all have greater relative exposure to energy costs, so any increase can put more pressure on an already significant area of household expenditure. 

The fact that gas bills are expected to rise by 8% is particularly important as we head into autumn. October is when many households will start using their central heating more regularly, so the price increase is arriving at exactly the point when consumption is likely to increase too.

That's why I'd use September to make sure your heating is working as efficiently as possible. You don't want to wait until the first properly cold week to discover that radiators aren't heating evenly or that you're losing heat unnecessarily."

Five Things Households Can Do Before Turning the Heating Back On

Rob Nezard says September is a good opportunity to check heating systems before they are needed every day. 

1. Bleed radiators that are cold at the top 

"If a radiator feels warm at the bottom but cold at the top, trapped air could be stopping hot water from circulating properly. Bleeding the radiator can help it heat more evenly rather than leaving the heating running for longer trying to warm the room." 

2. Move furniture away from radiators 

"One of the easiest mistakes to fix costs nothing. A sofa or other large piece of furniture directly in front of a radiator can absorb and block heat rather than allowing it to circulate around the room. 

Even creating some space between furniture and the radiator can help warm air move more freely."

3. Don't cover radiators with washing 

"Drying clothes directly on radiators can restrict how effectively heat reaches the room. If you're trying to heat the house at the same time, you can end up leaving the heating on longer because the room itself isn't warming as efficiently. 

An airer positioned nearby rather than directly over the radiator is a better option." 

4. Check which rooms actually need heating 

"Not every room necessarily needs to be heated to the same level throughout the day. If you have thermostatic radiator valves, use them to control individual rooms rather than automatically heating every space equally. 

The important thing is to be sensible rather than simply switching radiators off everywhere, particularly in colder weather when homes also need adequate heat and ventilation." 

5. Stop heat escaping unnecessarily 

"Heating efficiency isn't only about the boiler or radiator. Closing curtains in the evening, shutting internal doors where appropriate and dealing with obvious draughts around doors can all help retain warmth. 

Before spending money on bigger improvements, I'd always start by looking for the simple places where the heat you're already paying for is escaping."

Rob Nezard added: 

"The cheapest unit of energy is ultimately the one you don't need to use. That doesn't mean sitting in a cold home. It means making sure that when you do turn the heating on, as much of that heat as possible is actually warming the room. 

For households that are more exposed to energy costs, small improvements across an entire heating season can become much more meaningful."

Methodology

UK Radiators analysed the Office for National Statistics Household Costs Indices for UK household groups: April to June 2026, including the 2026 expenditure weights. Please credit us with a link if you use our analysis: https://ukradiators.com/  

The Household Costs Indices measure changes in household costs experienced by different household groups. Expenditure weights indicate the relative importance of different goods and services within each group's expenditure basket and are expressed as parts per thousand. 

For comparisons within this analysis, electricity, gas and other fuels weightings were compared across household income deciles, tenure and retirement status. 

Percentage differences between household groups were calculated from the published ONS expenditure weights. For example, the weighting for social and other renters (57) is approximately 84% higher than the weighting for private renters (31). 

The analysis does not claim that lower-income households spend twice as many pounds on energy as higher-income households. It shows that electricity, gas and other fuels have twice the relative expenditure weighting within the ONS Household Costs Index basket for the lowest-income decile compared with the highest-income decile.

 Sources: Office for National Statistics, Household Costs Indices for UK household groups: April to June 2026; Ofgem, October to December 2026 energy price cap announcement.