Letters Archives - End Fuel Poverty Coalition

Letter to the Chancellor on Winter Fuel Payments

Charities have written to Chancellor, Rachel Reeves MP, to set out the challenge now faced by pensioners this winter and ask the Government to reconsider its plans to axe Winter Fuel Payments.

The full text of the letter is below.

To:

Rt Hon Rachel Reeves MP, Chancellor of the Exchequer

Copied to:

Rt Hon Ed Miliband MP, Secretary of State for Energy Security and Net Zero

Rt Hon Liz Kendall MP, Secretary of State for Work and Pensions

Rt Hon Darren Jones MP, Chief Secretary to the Treasury

Miatta Fahnbulleh MP, Minister for Energy Consumers

Monday 5 August 2024

Dear Chancellor,

The Winter Fuel Payment to pensioners has been a settled part of support to help older people stay warm each winter for years.

The decision to remove the Payment to all but a small minority of pensioners will see millions more older people face the prospect of spending this winter in cold damp homes.

This has the potential to create a public health emergency. The impact of living in cold damp homes is particularly harsh on those older people with a disability, a long term health condition or with poor mental health.

It results in these people turning to an NHS that is already under stress and in some cases, can result in additional winter deaths.

We understand the arguments for means testing the benefit, but the approach you have taken is the wrong one.

We urge you to rapidly consult with consumer groups to broaden the targeting of the Winter Fuel Payment, to introduce support to end energy debt, expand the Warm Home Discount and extend the Household Support Fund.

For the medium term, we recommend that the Government reforms standing charges and consults on how a social tariff could protect the most vulnerable in society from the cost of energy.

We have publicly commended the Government in taking some of the long term measures to tackle high energy bills, such as the drive for more renewable energy and a Warm Homes Plan. But these solutions will take time to bring down bills.

Energy bills are due to increase further on 1 October, meaning that a pensioner who no longer receives Winter Fuel Payment, will experience a real-terms increase in their energy bills of up to 15% in winter 2024/25 compared to winter 2023/24.

Unless we see urgent action from the Government to keep people warm this winter, one of the first actions of the new Government will be to condemn more vulnerable households to fuel poverty.

We would be happy to meet with you to discuss this further.

Yours sincerely,

End Fuel Poverty Coalition

Disability Poverty Campaign Group

Fuel Poverty Action

National Pensioners’ Convention

Disability Rights UK

Warm This Winter

350.org

Community Action Northumberland

Advice for Renters

Fairer Housing

Scope

Green Rose CIC

MND Association

The Printing Charity

VOICES ADFOCAD

Surrey Coalition of Disabled People

Bringing Us Together

Independent Age

Agewell CIC

Adult Social Care Warriors

Zero Hour

The Working Class Climate Alliance

38 Degrees

High Peak Green New Deal

Voluntary Organisations Disability Group (VODG)

Community Housing Cymru

Hackney Foodbank

Equal Right

Global Witness

Harrow Association of Disabled people (HAD)

Bristol Reclaiming Independent Living

WinVisible (women with visible & invisible disabilities)

The Climate Coalition

Community Money Advice

Climate Cymru

Clynfyw Care Farm

Stop Climate Chaos Cymru

Pontypridd Land Society

Awel Amen Tawe

Cardiff Quakers

Ffynnone Community Resilience

Climate and Community

Tir Natur

Egni Cooperative

The Coproduction Network for Wales

Climate Shop

Gwyrddni

The One Planet Centre

The Mentor Ring

Sustainable Wales

Datblygiadau Egni Gwledig

XR Cardigan

Friends of the Earth

Medact

Image Credit: Martin Suker / Shutterstock

Pensioners face surge in winter energy bills

The Chancellor’s decision to cancel the Winter Fuel Payment for most pensioners will leave millions of older households facing an inflation-busting energy bills increase this winter.

A combination of the end of the Winter Fuel Payment and a likely increase in energy prices from 1 October will mean that the average older household will see their energy bills increase by up to 15% in real terms, compared with winter 2023/24. [1]

Charities have written to Rachel Reeves MP this week to set out the challenge faced by pensioners and ask the Government to reconsider its plans.

The letter, signed by over 50 organisations, says:

“The decision to remove the Payment to all but a small minority of pensioners will see millions more older people face the prospect of spending this winter in cold damp homes.

“This has the potential to create a public health emergency. The impact of living in cold damp homes is particularly harsh on those older people with a disability, a long term health condition or with poor mental health.

“It results in these people turning to an NHS that is already under stress and in some cases, can result in additional winter deaths.”

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented:

“We have publicly commended the Government in taking some of the long term measures to tackle high energy bills, such as the drive for more renewable energy and a Warm Homes Plan. But these solutions will take time to bring down bills.

“In the meantime, households of all ages will need more support from the Government to stay warm this winter, not less.

“We urge the Chancellor to rapidly consult with consumer groups to broaden the targeting of the Winter Fuel Payment, to introduce support to end energy debt, expand the Warm Home Discount and extend the Household Support Fund.”

The letter ends by warning ministers that:

“Unless we see urgent action from the Government to keep people warm this winter, one of the first actions of the new Government will be to condemn more vulnerable households to fuel poverty.”

Members of the public have also been asked to write to their MPs through the Warm This Winter campaign or the Independent Age website urging the Government to think again. Hundreds of thousands of people have also signed petitions on the Age UK and 38 Degrees websites. [2]

National Pensioners Convention General Secretary Jan Shortt commented:
“I seriously believe the Chancellor has underestimated the harm her decision will cause to older people still struggling with energy costs and facing higher rates in October. It is absolutely shocking that the new Labour government should treat older, vulnerable people in this manner. The triple lock alone will not enable them to keep up with energy bills.”

Jonathan Bean from Fuel Poverty Action added:

“Making heating even more unaffordable for those trying to survive on basic pensions is a cruel and reckless move that will cause widespread suffering, and increased NHS admissions this winter. Instead we need an energy pricing system that guarantees everyone the essential energy they need to stay warm and safe.”

Jacky Peacock from Fairer Housing said:

“While it makes sense to withdraw the payment for wealthy pensioners, the bar has been set too low. We’re asking the Chancellor to re-think this move to allow pensioners on modest incomes to enjoy their home in comfort this winter without the worry of how they will be able to afford it.”

Jenna Fansa from Hackney Foodbank commented:

“We urge the government to widen the eligibility criteria for Winter Fuel Payments. Last year we saw a 95% increase in the number of older people coming to our food bank due in part to rising food and fuel costs. For many, it’s a choice between having the heating on or going hungry. Restricting the criteria only to those on certain benefits will cause more anxiety for many pensioners and will inevitably bring more pressures for food banks like ours.”

Morgan Vine, Head of Policy and Influencing at Independent Age, said:

“It is not an overstatement to warn that, in its current form, this sudden change puts lives at risk. Pension Credit has an unacceptably low take-up at just 63%.

“This means up to a staggering 1.2 million older people who are eligible could be missing out on money they need to turn their heating on. On top of this, every day we hear from older people who just miss out on Pension Credit but still struggle to pay their energy bills. They could now be heading into winter without this important lifeline.

“We urge the Chancellor to not make this change now, and instead ensure every older person has an adequate income to avoid financial hardship before removing the Winter Fuel Payment.”

Ken Butler, Welfare Rights and Policy Officer at Disability Rights UK said:

“The removal of winter fuel payment from millions of pensioners, many of them Disabled people, is shameful. Many pensioners live on the margins of poverty and need more heat and energy to manage their health conditions and charge their health-related equipment.

“In addition, due to a DWP backlog assessing pension credit claims, award decisions are taking several months to be made. Because of this, many eligible pensioners could miss out on fuel payments this winter.”

ENDS

For a full copy of the letter visit: https://www.endfuelpoverty.org.uk/letter-to-the-chancellor/

[1] Average energy bills in winter 2023/24 were GBP1,834 – but for households receiving the full GBP300 Winter Fuel Payment this would have been GBP1,534.

Average energy bills for winter 2024/25 are forecast to be GBP1,762 according to analysts Columbia Threadneedle (accessed 22 July 2024). This means the average household who received the full Winter Fuel Payment in 2023/24 will now pay 14.68% more for energy in winter 2024/25.

[2] Age UK petition stands at over 138,000 and the 38 Degrees petition stands at over 105,000 as at 1500 on 2 August 2024

Ofgem called on to keep the ban on energy acquisition tariffs

A coalition of consumer organisations and energy firms is urging Ofgem not to lift the ban on acquisition-only energy tariffs, which could lead to existing customers being excluded from the best deals and risk opening the door to loyalty penalties.

Ofgem has said it is minded to remove the ban on acquisition-only tariffs – which would be used by energy suppliers to attract new customers or lure switchers from rival firms – from 1 October 2024. It has consulted on this and is due to reach a final decision imminently.

Existing customers would not have access to these deals and Which? is concerned consumers who want to stay with their current supplier could be left worse off. These customers – and new ones whose initial deal expires – face being hit by so-called “loyalty penalties” as their bills jump in subsequent years.

New Which? research shows the public are opposed to cheap deals that exclude existing customers.

The consumer champion has written to the regulator alongside Eon, Octopus, So Energy, Rebel Energy, End Fuel Poverty Coalition, Citizens Advice and Fair by Design, calling for it to reconsider its proposals to lift the ban on acquisition-only tariffs.

In the letter, the organisations warn of the risk of “a return to a market which discriminates against loyal customers”. They also raise the potential impact on customers in debt, who may not be able to switch but could also find themselves struggling to access a better deal with their current supplier under the plans.

The letter highlights the lessons of recent history, when more than 30 suppliers went bust – many after trying to win customers with unsustainably cheap tariffs.

Which?’s latest survey findings show eight in 10 (81%) people would think it was unfair if their supplier was offering cheaper deals to new customers only. A similar number (78%) said they would think this was unfair even if they would potentially benefit in the short term by signing up to a discounted deal.

Rocio Concha, Which? Director of Policy and Advocacy, said:

“Our research has shown that consumers overwhelmingly believe cheaper energy deals only available to new customers are unfair – even when they might stand to benefit.

“That’s why Which? and a coalition of energy firms and consumer organisations have written to Ofgem warning them not to lift the ban on acquisition-only pricing.

“Allowing deals exclusively for new energy customers could open the door to loyalty penalties and would come at the expense of those who wish to stick with their current supplier on their best deal.”

A spokesperson for the End Fuel Poverty Coalition, commented:

“Removing the ban on acquisition tariffs will create price discrimination against loyal customers and also hurt further the millions of households who can’t switch to a new supplier because they are in energy debt.

“Removing the safeguard also means risking a return to the unsustainable form of competition in the energy market that existed before 2021. Suppliers collapsed partly because they had grown too quickly in a market driven by acquisition tariffs.

“Ultimately energy bill payers bore the heavy price of these collapsed firms through the Supplier of Last Resort programme which added billions to households’ standing charges.”

ENDS

The joint letter is available on the Which? website at this link.

MSPs must act to help end cold homes crisis

Members of the Scottish Parliament have been urged to put political differences aside to unite in support measures that will help end fuel poverty.

In a letter sent to all MSPs, politicians have been asked to ensure the next First Minister does not abandon government policies which could help end the cold damp homes crisis.

For over 400,000 Scots, their homes are almost uninhabitable due to the cold and damp.

The letter, signed by leading civil society organisations and coordinated by the End Fuel Poverty Coalition and Energy Action Scotland, warns that among the most vulnerable, the crisis is even worse.

New figures from research among Social Workers Union members has found that 69% of Scottish social workers have seen the people they support living in cold damp homes.

The letter states that the health complications of this are potentially serious: “Everyone remembers the tragic case of Awaab Ishak, but people young and old, with disabilities or with a range of health conditions are at risk.”

The campaigners have demanded that MSPs from across all parties to unite in support of:

A Heat in Buildings Bill which is ambitious in its vision for improving the energy efficiency and insulation of the nation’s homes and contains a clear fuel poverty duty enshrined in the legislation.
The current Housing Bill that will enhance tenants’ rights and provide financial protections for tenants during the ongoing cost of living crisis.
Additional Government support in future budgets and legislation to help households cope with the cost of living crisis.
Reintroducing the Fuel Insecurity Fund to help at least those most at risk of harm and struggling in energy debt.
The new Pension Age Winter Heating Payment being fundamentally better targeted than the Winter Fuel Payment that it replaces.
A strengthened framework of support for the renewables and offshore wind sectors and the fastest possible “just transition” for the oil and gas sector, as described in the Draft Energy Strategy and Just Transition Plan.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Any further delays to boosting energy efficiency plans, protecting tenants rights and organising financial support for the most vulnerable will hit households hard.

“We need MSPs to come together and unite on a programme that will tackle the long term causes of Scotland’s cold homes crisis and provide emergency support to those most at risk next winter.”

Other groups signing the letter range from the Poverty Alliance and the Disability Poverty Campaign Group to Fathers Network Scotland, the National Pensioners Convention and Parents for Future Scotland.

Local groups such as Aberdeen Heat & Power, East Kilbride Housing Association, Musselburgh Food Pantry, Stirling District Citizens Advice and Tighean Innse Gall have also backed the letter.

One signatory, Gaynor Allen from Sustaining Musselburgh, which is organising an event to help East Lothian residents find out how to make their homes warmer and less expensive to heat on 1st June, said:

“Everyday we hear more shocking stories of the hardships people are facing due to high energy bills and poorly insulated homes. We need both the UK and Scottish Governments to prioritise the short term and long term solutions to fix people’s cold homes.”

Warm This Winter spokesperson Fiona Waters, added:

“What voters really care about is the cost of living crisis driven by high energy bills that is still putting unbearable pressure on millions of households around the country.

“We need governments in each nation who will prioritise fixing our broken energy system by getting us off expensive oil and gas and onto cheap, homegrown renewables and by properly insulating our leaky housing stock to bring down bills for good.

“Politicians should not lose sight of that or they will pay at the ballot box.”

To read the full letter, click here.

Ministers told to show leadership on prepayment meters scandal

Ministers must show further leadership and ban the forced transfer of homes onto prepayment meters, according to campaigners.

In a letter sent to the Secretary of State for Energy Security & Net Zero, Claire Coutinho MP, and copied to the Minister for Consumer Energy and the Lord Chancellor, the End Fuel Poverty Coalition has claimed that to date, people across government and industry have tried to “wash their hands of responsibility.”

The latest revelations in the Times on forced prepayment meters (PPMs) showed agents for Scottish Power securing warrants to break into the homes of mothers with young children to force them onto PPMs.

Concerns were raised about Scottish Power by the House of Commons Energy Security Committee after a letter on the issue to MPs from the Coalition. Scottish Power is among the firms being considered by Ofgem as potentially being in a fit state to restart the forced transfer of homes onto PPMs in the coming weeks.

However, according to the letter now sent to the Minister, the Times investigation raises concerns that: “the checks and systems Scottish Power have in place are not fit for purpose.

“Given the firm has been making progress towards being granted permission from Ofgem to restart forced PPM installations, we believe this calls into question the whole system the regulator has in place.”

In the letter, the Coalition asks the Secretary of State to:

Ban the practice of forced prepayment meters outright through legislation in the House of Commons. Ministers rejected the opportunity to do this during the passage of the Energy Act, leaving enforcement up to voluntary codes of practice and licence conditions.

Instruct Ofgem that the current ban – which includes switching of smart meters into PPM mode – must stay in place until at least April 2024.

Ensure that Ofgem places Scottish Power under heightened monitoring for all aspects of its customer service and for its dealings with vulnerable customers. Scottish Power and its subcontractors must also be instructed to cancel all warrants it has sought so far and cease any current warrant applications being made.

The letter also highlights the “cloak of secrecy” which magistrates courts operate under and raises concerns that the same poor practices identified in the original PPMs scandal are still present, including distant hearings and nodding through batch applications.

The End Fuel Poverty Coalition stresses that it recognises energy firms have genuine concerns about the levels of household energy debt caused by record energy bills, but argues for an alternative to forced PPMs – the introduction of a Help to Repay scheme and an Emergency Energy Tariff for vulnerable groups.

Over the summer, the End Fuel Poverty Coalition repeatedly highlighted to regulators and Ministers that the PPMs scandal was in danger of returning, first issuing a warning about energy firms’ conduct on PPMs on 17th May.

On 13th July, in a formal consultation response [pdf], the Coalition warned the regulator about firms’ conduct and in an accompanying press release urged the Government to act, also writing to the Minister highlighting the consultation response [pdf].

On 8 Sept the Coalition wrote to the current Secretary of State asking for a ban on forced PPMs again and on other issues including energy debt. The minister is still to reply to this letter.

Jonathan Bean from Fuel Poverty Action said:

“This is yet more evidence that energy firms and Ofgem cannot be trusted to protect struggling customers from harm.

“Forced installations of prepayment meters or switches of smart meters to PPM mode are inherently risky as they can lead to the loss of heating in the depths of winter.”

Jan Shortt, General Secretary of the National Pensioners Convention commented:

“The Secretary of State must ensure that the regulator, Ofgem, is much more proactive in applying the Code of Practice.

“The NPC has been assured in writing that no energy provider currently meets the standards and therefore no Court should be undertaking the signing of warrants.

“The impact on customers put through this process should not be dismissed by the energy industry and government so lightly.”

Warm This Winter campaign spokesperson Fiona Waters added:

“It’s appalling that Scottish Power were granted warrants which would allow them to force their way into over a hundred homes to install prepayment meters and leave vulnerable people with just £30 credit.

“We now know at least two of those targeted had babies and toddlers which is completely against the Ofgem guidelines. It shows vetting is not working and the only way to safeguard against children being put in danger is to ban this barbaric act and find a better way to help ordinary people who find themselves in energy debt through no fault of their own.”

The full letter can be read online [pdf].

Commons Committee asked to take urgent evidence on forced PPMs

The House of Commons Energy Security Committee has been asked by campaigners to hold an urgent evidence session on the prepayment meters scandal.

Last week Scottish Power was granted 124 warrants by Berkshire Magistrates Court to forcibly enter people’s homes to force them onto prepayment meters (PPMs).

According to media reports, the magistrate granted all 124 warrants after examining just 20 of them in detail.

One of these warrants was granted against a property in Grimsby, almost 200 miles away.

The End Fuel Poverty Coalition has now written to the Committee outlining more than ten serious concerns about this decision and requesting its help in understanding the circumstances around the warrants.

The group has asked the Committee to take evidence within the next 28 days from Scottish Power, Richburns Ltd (debt collection agency), His Majesty’s Courts and Tribunals Service and Ofgem.

The forced PPMs scandal rocked the energy industry after investigations by the i paper and The Times revealed the extent energy firms were using the courts to gain warrants to people’s homes to force vulnerable people onto PPMs.

Expert reports highlight the health dangers potentially caused by people’s PPMs switching off and leaving them in cold damp homes.

These warrants were granted despite a ban on the forced transfer of homes onto prepayment meters still being in place.

Campaigners have previously written to Ministers to call for a Help To Repay scheme to be introduced to remove the need for forced prepayment meter transfers.

A spokesperson for the End Fuel Poverty Coalition, commented:

“It is totally inappropriate for energy firms to be seeking to force their way into people’s homes to push them onto dangerous prepayment meters in this way. This strategy leaves potentially vulnerable customers at risk of disconnection and going without energy.

“Instead, we need Government and industry to agree to a Help To Repay scheme which will help bring down the astronomical levels of energy debt and help households struggling with the cost of living crisis to get back on an even keel.”

National Pensioners Convention General Secretary Jan Shortt said:

“It is interesting that Scottish Power had warrants passed before 8 November, when Ofgem’s mandatory regulations covering energy providers are due to come into force.

“We oppose magistrates signing warrants for forced entry in bulk. Magistrates have the overriding power when it comes to human rights, and we expect that they will take genuine steps to ensure that every application for a warrant to force entry to fit a prepayment meter will be vigorously scrutinised to ensure adherence to the Ofgem Code of Practice.

“We recognise this will cause delays, but the alternative is to breach individual human rights and cause distress to those struggling with paying bills.

“We would prefer to see an end to the use of prepayment meters with an agreed strategy to transfer those customers who do not want them back to a payment scheme that enables them to be debt free.”

Frazer Scott, CEO, Energy Action Scotland commented:

“People are struggling with unaffordable energy costs and spiralling debt. This has reached record levels. Some of the most vulnerable in society have not seen the right levels of support to ensure that their health and wellbeing is protected.

“The forced movement of people from credit to prepayment places an unacceptable level of risk to the lives of people. Government, regulator, suppliers and our courts are failing to provide meaningful protection.

“We are dismayed that action has been taken by suppliers and the courts ahead of the introduction of changes to regulations which should ensure that no vulnerable person has to endure being subject to a forced installation.”

Warm This Winter spokesperson, Fiona Waters said:

“It’s appalling that Scottish Power have been granted warrants to force their way into over a hundred homes, install prepayment meters and leave vulnerable people with just £30 credit. Prepayment meter users often have to clear debt before they can top them up. We hope Ofgem and the Energy Security Committee will exert all their authority to stop this and not condemn these customers to living without any heating or lighting.”

Jonathan Bean of Fuel Poverty Action added:

“Scottish Powers’ plan to break into homes, and risk leaving people unable to stay warm this winter, has been exposed. The courts are failing to properly assess most cases, and Ofgem is guilty of wishful thinking. Government must act now to end this inhumane and dangerous practice.”

The full letter is available to read as a pdf.

Government isolated as organisations line up to back energy tariff reform

Over 140 charities, organisations and MPs have taken joint action to call on the government to support vulnerable households with their energy bills.

In an open letter sent to the Prime Minister [pdf], the groups highlight how the government is yet to announce any winter financial support, despite households facing even higher costs of living and with energy bills still at relative highs.

According to new polling carried out for National Energy Action by YouGov, a third of British adults are expecting to struggle to afford their heating bills this winter if the government doesn’t offer financial help with energy bills.

The government has previously committed to consult on future approaches to consumer protections including a social tariff. This was promised on repeated occasions, as the End Fuel Poverty Coalition has highlighted to the Speaker of the House of Commons.

But with the next winter looming and no consultation launched, the signatories to the letter are urging the government to make good on its commitment to consult on a social tariff.

Adam Scorer, CEO at National Energy Action, said:

“With a third of households expecting to struggle to heat their homes this winter, the cost of energy will remain simply unaffordable for millions.

“We have to face reality. Even without a price rise, which now looks likely in January, the crisis is deepening, and it demands a proper response from government now.

“That means urgent targeted financial support this winter and for government to get moving on its commitments to consult on and deliver a longer-term social tariff for energy.”

Caroline Abrahams CBE, Charity Director of Age UK, said:

“We believe the introduction of a comprehensive, targeted energy social tariff is the best way to deliver support to those who need it. That’s why we are calling on the government to keep their promise and launch a consultation. Older people struggling to heat their homes have waited patiently only to learn that in fact there would be no social tariff consultation before the autumn.

“With estimates showing that high energy prices are here to stay, at least for the next two winters, this targeted support package cannot come soon enough for our older population.”

Louise Rubin, Head of Policy at disability equality charity Scope, said:

“Life costs a lot more for disabled people. When you rely on energy for equipment to help you breathe or get out of bed, cutting back on energy is not an option.

“Last winter pushed disabled people and their families to the brink. Now disabled people who’ve cut back everything they can are facing the terrifying prospect of even higher energy bills.

“We’re hearing from people who have been forced to go without food for days. One person told us they’d been surviving on food donations from a neighbour.

“We need emergency support now, and a social energy tariff to end sky-high bills for disabled people. The government must keep its promise.”

Frazer Scott, CEO of Energy Action Scotland, said that a social tariff is essential for health and wellbeing:

“That we are still having to argue a case for a social tariff as we approach autumn is a disgrace. People need to know that essential and basic levels of heat and power are within reach.

“The UK government must work with regulators and energy suppliers to create a long-term, fair and affordable social tariff. Millions of households are approaching this winter with significant amounts of debt. This means that while gas and electricity prices remain at historically high levels, energy bills are simply unaffordable for those on the lowest incomes, those with essential medical needs, the disabled and older people. It is exacerbated by poor-quality housing, that is cold and damp. This is fast becoming a humanitarian crisis unfolding in plain sight of our politicians and policymakers.”

A Department for Energy Security and Net Zero spokesperson told Press Association that the Government “continues to keep all options under review for those most in need.”

But a spokesperson for the End Fuel Poverty Coalition responded:

“MPs on the Energy Select Committee back reform to energy tariffs, MPs on All Party Parliamentary Groups back reform, charities and campaigners back reform, the public backs reform. Even energy firms support reform.

“The only people left who do not support making our energy system fairer are Rishi Sunak and his Cabinet. They need to wake up to the strength of feeling on this issue and take action now to keep people warm this winter – and every winter.”

Energy Secretary warned of perilous winter ahead

Following the new Energy Secretary’s first appearance in front of MPs, ministers have been warned of a perilous winter ahead.

A letter sent by the End Fuel Poverty Coalition to the new Secretary of State comes after the group warned MPs that almost 5,000 excess winter deaths were caused by people living in cold damp homes in the relatively mild winter of 2022/23.

The letter states that “the situation is perilous, the outlook deeply worrying and the need for support with energy bills is increasingly urgent.”

After the new Secretary of State failed to attend the House of Commons Energy Committee last week, her first major intervention since taking office was an article in the Sun which also failed to acknowledge the challenge faced by families this winter.

And while Rt Hon Claire Coutinho MP answered questions in the House of Commons chamber on long term energy issues, she was silent on the need for help for families this winter.

But alongside longer-term reforms to Britain’s broken energy system, the Government has been urged by campaigners to launch a new “Help to Repay” to tackle energy debt this winter, to reform the Energy Bills Support Scheme (EBSS) Alternative Fund, to move policy costs from energy bills onto general government spending and to bring in a new Extreme Weather Payment.

To bring bills down for the most in need, a new energy cost support scheme (ECSS) has been proposed via the reduction of unit costs and standing charges under the existing Energy Price Guarantee legislation.

Local authorities could also be supported by investing the underspend in the Energy Bills Support Scheme into Household Support Funds and further work to reform the Private Rented Sector to ensure higher and more enforceable Minimum Energy Efficiency Standards.

A spokesperson for the End Fuel Poverty Coalition which is part of the Warm This Winter Campaign, commented:

“The Government appears to have abandoned plans to consult on reform of energy tariffs which could help protect the most vulnerable from the worst excesses of the energy market. This means they must bring in support to help people trapped in energy debt now and introduce an emergency tariff for vulnerable households this winter. We believe this is more than possible using existing legislation.”

Tessa Khan, director of Uplift, commented:

“While the minister is obsessed with nuclear fusion, oil and gas, the Government is ignoring the plight of millions of people facing a winter in cold damp homes. What the Secretary of State should be focussed on is helping people to insulate their homes, unblocking cheaper onshore renewables and bringing down our energy bills.”

ENDS

The full letter is available to read online (pdf) and is below. It was sent on 8 September 2023.

On behalf of the End Fuel Poverty Coalition, congratulations on your appointment as Secretary of State for Energy Security and Net Zero.

We appreciate that you will be incredibly busy with the volume of vital decisions that are in your in-tray. And we know from recent polling that policies to reduce energy bills are seen by voters as the best way to tackle the cost of living crisis.

It is vitally important that the right decisions are made to reform Britain’s broken energy system. As we explained in evidence to the House of Commons Energy Security Committee this week, the situation is perilous, the outlook deeply worrying and the need for support with energy bills is increasingly urgent.

We were disappointed that the previous Secretary of State abandoned plans to consult on reform of energy tariffs which could help protect the most vulnerable from the worst excesses of the energy market in the long term. We hope you will recommit the Government to this vital consultation on a social tariff – and introduce reforms before the Energy Price Guarantee protections end in Spring 2024. You can read our letter to the Speaker of the House of Commons online [pdf link].

As an immediate priority, the Government must commit to providing a targeted package of support to help the most vulnerable stay warm this winter:

Introduce the widely supported “Help to Repay” proposals to tackle energy debt
Move policy costs from energy bills to be covered by general government spending
Support local authorities by investing the underspend in the Energy Bills Support Scheme into Household Support Funds
Reform and re-run the Energy Bills Support Scheme (EBSS) Alternative Fund
Deliver a new Extreme Weather Payment of £6.50 per day for every day the Met Office declares the temperature will drop below -4 degrees Celsius (with the potential for a similar equivalent for summer months also investigated)
Ensure that all households who received the Warm Homes Discount in winter 2021/22 can access a £150 rebate this winter, regardless of the new process introduced in winter 2022/23 which uses an algorithm to decide who benefits.
Provide a new energy cost support scheme (ECSS) for households most in need of support applied directly to energy accounts (for example via the reduction of unit costs and standing charges, which can be done using existing Energy Price Guarantee mechanisms).
Ban the forced transfer of homes to prepayment meters and end the Government’s dereliction of duty on this issue.
Work with housing ministers to reform the Private Rented Sector to ensure higher and more enforceable Minimum Energy Efficiency Standards

At the moment, many of the other vital reforms needed to reduce energy bills are seen as longer term, but the reality is that decisions need to be taken now to:

Speed up reforms to ensure customers start enjoying the advantages of more affordable renewable electricity options, and that their electricity rates are no longer subject to the unpredictable cost fluctuations of fossil fuels.
Turn the current crisis into an opportunity to engage households in a large-scale retrofitting programme, investing in an emergency roll out of cheap energy saving measures that could permanently cut energy bills by hundreds of pounds.
Address UK energy security and independence by quickly weaning the UK off its dependence on oil and gas and ending subsidies for fossil fuels, using the money to support a fair transition, invest in immediate support for vulnerable households and long term measures to reduce the cost of energy and make the UK supply more secure.
Ensure Ofgem works with energy firms to improve standards of customer service at energy firms, holding them accountable for contact ease, success and empathy. This means customers can get in touch with their energy supplier to resolve issues easily, that problems are solved in one contact and that customers are treated with respect and understanding throughout all forms of communication from the energy firm.

We look forward to working with you in your role and if you would like to discuss any of the issues we have raised, please do not hesitate to contact us via our coordinator.

Yours sincerely,

The End Fuel Poverty Coalition

Minister Amanda Solloway invited to discuss energy bills support

Members of the End Fuel Poverty Coalition have invited Amanda Solloway MP, the Minister for Energy Consumers and Affordability, to meet and discuss plans to keep everyone warm this winter.

The letter to the Minister says:

“We all know that this winter will be as challenging as the last for many households, with energy bills remaining around double what they were in winter 2020/21.

“While last winter’s unprecedented levels of Government support did indeed help households, we know that millions still spent the winter in cold, damp homes.

“And this winter, people’s ability to pay high energy bills has been further diminished by the increased cost of living (while inflation may be falling, the high prices will remain with us).”

The letter sets out some immediate financial and non-financial support the Government could provide households. A wider package of recommendations are being developed by Coalition members as part of the Warm This Winter campaign and will be launched later in summer 2023.

The immediate actions the Coalition suggests are:

Directing the money returned to Government through unused Energy Bills Support Scheme payments and vouchers to be given to local authorities to use in the Household Support Funds (or equivalents in Scotland and Wales).
Introducing a ban on the forced transfer of households onto prepayment meters (PPMs) when the Energy Bill returns to the Commons at Report Stage.
Using funds raised through an extension to the Windfall Tax to help introduce a “Help to Repay” scheme which is backed by a range of charities.

Additional proposals and recommendations are being developed by Coalition members as part of the Warm This Winter campaign and will be published shortly.

A spokesperson for the End Fuel Poverty Coalition commented:

“Many of our members have heard the Minister speak passionately about fuel poverty in recent weeks. We would welcome the opportunity to discuss our wider proposals to provide support for households this winter – and beyond – with the Minister.”

The full letter can be read online: https://www.endfuelpoverty.org.uk/wp-content/uploads/230713-Amanda-Solloway-EFPC-Letter.pdf

Leading charities urge PM-hopefuls to end fuel poverty

Warm This Winter, a new national coalition group, has published an open letter in The Times to all candidates in the race to become the next Prime Minister asking that they urgently set out how they plan to address the cost of living crisis driven by soaring energy bills.

The letter calls on each of the candidates to use these next precious few weeks to set out practical measures for how they will help people now, and how they will ensure we have lower energy bills in future.

The campaign, which is backed by the End Fuel Poverty Coalition, is pushing for practical solutions that have the public’s support, and which are ready-to-roll out now, including:

- Providing financial support to people who without urgent action will be on the front-line of poverty this winter
- Upgrading and insulating homes across the UK to bring down bills and prevent energy waste
- Rapidly expanding clean energy, which is now four times cheaper than gas, to urgently lower energy bills
- Stopping drilling new oil and gas fields so that we can escape our dependence on volatile fossil fuels.

A spokesperson for the End Fuel Poverty Coalition commented:

Based on current estimates, well in excess of a third of all homes will be in fuel poverty this winter, yet the candidates to be our next Prime Minister are ignoring the single most pressing issue facing families across the country.

Unless leadership candidates promise bold and decisive action, the next Prime Minister’s first act as leader will be to preside over the worst winter for millions of people in living memory.

Full letter to candidates

We are writing to you from Warm This Winter – a new national coalition representing 40 organisations and over 22 million people from across the UK during this time of national economic crisis – to ask what your plan would be as Prime Minister to address the cost of living crisis.

We are headed into a potentially catastrophic winter. In eleven weeks time, more than a third of households – many millions of British families – may not be able to afford to heat their homes. Meanwhile, earlier this year, 2.3 million families on low income were going without enough food and were unable to keep their homes warm.

According to the latest predictions, from October 1st the average annual energy bill will be over £3200. That means, for example, that the average pensioner will spend more than a third of their state pension on heating their home – and many people, including families, will have to choose between heating and eating. In the words of Martin Lewis last week: “millions of households will be forced into poverty unless we act. This is a genuine, urgent emergency.”

So far in the Conservative leadership campaign, no candidate has put forward a credible plan to support families, businesses, village and community halls, places of worship, hospitals and schools to keep their buildings warm this winter. Indeed whilst the public has grasped the scale and seriousness of the crisis heading our way, none of the leadership candidates seems to have done so.

We believe that in these next precious few weeks – when the Government should be planning and preparing for this winter – you should set out your plan for tackling the crisis of unaffordable energy bills, which are set to remain high until at least 2025. We know that this emergency, fuelled by the spiralling price of gas and by the war in Ukraine, does have solutions that are ready-to-roll out now – and that would also help us protect the future of the natural world – these include:

Providing financial support to people who without urgent action will be on the front-line of poverty this winter
Upgrading and insulating homes across the UK to bring down bills and prevent energy waste
Rapidly expanding clean energy, which is now four times cheaper than gas, to urgently lower energy bills
Moving away from drilling new oil and gas fields so that we can escape our dependence on volatile fossil fuels

Our members and supporters want to know what your plan would be – so we can have a proper debate on the most important and urgent issue facing this country. Whilst we may not all have a say in who becomes the next Prime Minister, we can ask that any candidate has a practical plan to keep people safe and warm this winter.

We would be keen to meet with you to discuss this further.

Full list of signatories:

End Fuel Poverty Coalition
The Climate Coalition
CPRE The countryside charity
Wildlife & Countryside Link
Save the Children
WWF UK
The Wildlife Trusts
Oxfam
Fuel Poverty Action
Fair Energy Campaign
Robin Hood Tax
The Centre for Sustainable Energy
Energy Action Scotland
Chartered Institute of Environmental Health
Possible
Ashden
Austerity Action Group part of Social Workers Union
New Economics Foundation
Uplift
Camden Federation of Private Tenants
Regen
Northern Housing Consortium
Groundwork
Advice for Renters
Fairer Housing
Friends of the Earth Scotland
MCS Charitable Foundation
Fairness Foundation
Tax Justice UK
Women’s Budget Group
The Economic Change Unit
Wellbeing Economy Alliance Scotland
IPPR
Chartered Institute of Housing
The Centre for Ageing Better
The Working Class Economists Group
Greenpeace UK
Friends of the Earth England, Wales and Northern Ireland
38 Degrees
Action with Communities in Rural England