Energy price fluctuations can affect whether a low-income family can afford to pay their energy bills. Through the Energy Hardship Project, the National Energy Assistance Directors Association (NEADA) tracks energy prices, energy bill arrearages, and the toll unaffordable energy costs take on struggling families.
August 2024 Energy Hardship Report
It has been nearly 11 months since Congress cut $2 billion from the Low Income Home Energy Assistance Program (LIHEAP) budget, and the latest quarterly analysis by NEADA shows the extent to which the combination of high energy costs, high temperatures, and reduced federal support is setting millions of families back financially.
The price of energy is volatile—and it hit record levels this summer driven by natural gas costs and periods of extreme heat—but energy affordability has proven to be a persistent problem that spans seasons. According to three years of data collected by NEADA, more than one in five households report being unable to pay their energy bill at least once during the year.
The tables and charts in this report highlight the difficulties families are facing in paying their home energy bills, with many falling behind.
Data in this report come from various sources, including the US Bureau of Labor Statistics, Health and Human Services, Energy Information Administration, and Census Bureau, and utilities, state agencies and other data sources.
Download the report here.
August 2024 Report Highlights
- Utility debt has increased by 8.4% to almost $17.4 billion since December 2023.
- The $17.4 billion in debt is spread across 17.4 million electric and 11 million natural gas households.
- Due to budget cuts, the number of households served by LIHEAP has been reduced by close to one million households.
- Roughly 80% of LIHEAP funds are used for heating, leaving only 20% of funds to cover the growing and urgent need for home cooling assistance.
- Utility shut offs are projected to increase by 300,000 households, to 3.5 Million, by the end of 2024:
- While families are protected from shut offs during cold months, 33 states do not have shut off protections for the summer months, leaving families vulnerable to extreme heat.
- Shutting off power is a ruthless and effective debt collection strategy, forcing roughly more than a third of families to prioritize utility payments over other basic necessities.
- “Low-income families feel the volatility of the global energy market most acutely, and it feels like living under the threat of getting your power turned off or living indebted to a faceless utility. It’s a real indignity that low- and middle-income families are dealt. It doesn’t have to be this way.” – Mark Wolfe, NEADA Executive Director
Past Energy Hardship Report Publications
April 2024
June 2023
November 2022
Our Latest Posts From The Energy Hardship Project
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Press Release: Utility Bills This Winter Will Cost More Than Christmas
Home heating costs this winter will remain unaffordable for millions of lower income families. NEADA estimates an 8.7% increase from last year’s home heating costs for the full winter season. According to NEADA’s research, the cost of home heating is, on average, going to come to $941 for the whole winter. This cost is an…
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Press Release: As LIHEAP Funding Runs Dry, Utility Debt Increases by 8.4% to $17.4 Billion
The latest quarterly analysis by NEADA shows the extent to which the combination of high energy costs, high temperatures, and reduced federal support is setting millions of families back financially.
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2024 Summer Cooling Outlook
The financial burden to families of keeping cool this summer will increase by 7.9% across the nation to an average of $719 from June through September, up from $661 during the same period last year. Residential Electric Utility Expenditures Projected to Reach Record Levels, Highest in 10 years Press ReleaseFull Report Home energy is becoming…
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While the Price of Winter Energy Bills are Declining, Families Struggle to Pay their Energy Bills
While the average cost of home heating dropped by 12.1% since last winter, from $951 to $836 the percent of all families that were unable to pay their home energy bill at least once in the last 12 months increased significantly from 16.5% in March 2023 to 19.2% in March 2024. For families with young…
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April 2024 Energy Hardship Report
Energy prices are finally coming down to pre-pandemic levels. Despite this relief, millions of low- and moderate-income (LMI) households are still struggling to pay their bills. The tables and charts in this report highlight the difficulties families are facing in paying their home energy bills, with many falling behind.
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Press Release: LIHEAP Funding Insufficient to Cover Record Utility Arrearages
States Call for Congress to Restore Funding for LIHEAP Record # of Households Receive Assistance – 1.5 Million Could be Cut from the Program Residential Utility Arrearages Reach Record Level