Image by Henryk Niestrój from Pixabay 

October 19, 2022 - Home heating costs are becoming increasingly unaffordable for millions of lower income families. The National Energy Assistance Directors Association (NEADA), representing the state directors of the Low Income Home Energy Assistance Program (LIHEAP), today released its updated projections of home heating costs for the upcoming winter heating season.

As shown in Table 1, the average cost of home heating is estimated to increase by 17.8% since last winter heating season from $1,025 to $1,208. This would be the second year in a row of major price increases. Between the 2020-21 and 2022-23 winter heating seasons, the cost of home energy has increased by 36%. As shown in Table 2, these are the highest prices in more than 10 years.

Of additional concern, arrearages have not come down over the past year as we head into a winter of high home heating prices. As of August 2022, the national arrearage balance totals almost $16.1 billion according to NEADA’s estimates, nearly unchanged since August 2021. 1 in 6 U.S. households are in arrears (16.7 percent, equivalent to 20 million households).



Of even greater concern, the total cost of home heating nationally, as shown in Tables 3, 4 and 5 would increase from $127.9 billion to an estimated $151.6 billion. The additional costs will fall hardest on lower income households.

According to Mark Wolfe, Executive Director of NEADA, the rise in home energy costs this winter will put millions of lower income families at risk of falling behind on their energy bills and having no choice but to make difficult decisions between paying for food, medicine and rent. As a result, NEADA sent a letter last month to Congressional Leadership asking for a supplemental increase for LIHEAP of $5 billion to cover the higher cost of home heating and cooling as a result of the increased number of summer heat waves.


Source: NEADA