Letters Archives - Page 2 of 2 - End Fuel Poverty Coalition

Business groups call for action on fuel poverty

Leading business groups, including the Advertising Association, Business In The Community, Food and Drink Federation, the International Chamber of Commerce (ICC) and RenewableUK, have urged Conservative Party leadership candidates to support the millions of people facing fuel poverty.

In an open letter, the groups also call on the next Prime Minister to implement manifesto commitments on net zero and nature restoration.

The letter states:

In today’s challenging context, an accelerated rollout of low cost, clean energy, energy efficiency, and industrial decarbonisation is vital to protect the UK from the volatile global fuel prices underpinning the ongoing energy crisis.

This is an urgent priority as skyrocketing energy bills inflict considerable costs on businesses and push ever more households into fuel poverty.

Eliot Whittington, Director, UK Corporate Leaders Group said:

The Conservative Party has a significant track record of climate leadership. Their new leader will have a choice between building on this track record and delivering for the UK economy and society or abandoning it and condemning the country to fall behind on the energy transition and face unnecessary costs and risks.

Forward looking businesses want more, not less, ambition on climate action, especially as we see the ramifications of volatile fossil fuel supply chains ramping up the cost-of-living crisis and reducing regional energy security.

The next Prime Minister must centre climate policy and continue delivery of net zero and regenerating the UK’s nature.

Julie Hirigoyen, CEO, UK Green Building Council said:

As prices soar businesses are looking for the next Prime Minister to deliver on the UK’s legal climate commitments, not ditch them.

Tackling the climate and cost of living crises are two sides of the same coin. Insulating our homes and businesses will bring bills down, bolster energy security and help achieve net zero carbon, whilst giving a real boost to the economy and industry.

Sandy Begbie CBE, Chief Executive Officer, Scottish Financial Enterprise said:

Whoever succeeds Mr Johnson as Prime Minister will face significant challenges, particularly tackling the cost of living crisis, accelerating economic recovery and addressing the pressing climate emergency.

Government urged to address ten failures in energy bills plans

Fuel poverty campaigners have revealed ten significant failures in the Government plans to address the escalating energy costs this winter.

In a letter to the Chancellor and other Cabinet Ministers, the End Fuel Poverty Coalition has called for a meeting to discuss operational problems with the measures announced by the Government on 26 May.

Among the concerns highlighted by the group of more than 60 charities, trade unions, social enterprises, local government representatives and other campaigners are:

A failure of proposals to help those on pre-payment meters, in Park Homes, off-gas, on heat networks and not on electricity meters.
The risk that those in the Private Rented Sector will not see the benefits of Government support passed on by landlords.
Concerns about how the financial support may impact on the care charges disabled, elderly and vulnerable people are assessed on.

With the winter 2022/23 price cap now predicted to exceed the £2800 Ofgem estimates, the End Fuel Poverty Coalition has also called for wider reform to the energy market.

It warns that further, short-term, financial support for people in fuel poverty will be needed this winter to mitigate any further increases in the price cap above £2800 and support for those suffering already.

The Coalition has also repeated its calls for a review and subsequent reform of the energy supply market to consider the introduction of policies such as a social tariff, energy for all allowance and a total price cap ceiling.

Anne Vivian-Smith, a disabled former community worker from Nottinghamshire, commented:

The lack of urgency from the Government is terrifying. Special tariffs for disabled customers who have unavoidably high energy use need to be created now. Disability benefits have not increased, yet disabled people have very few ways to economise without cutting something essential like food or care.

Heating or eating isn’t a slogan, it’s reality, it’s now and we need help.

A spokesperson for the End Fuel Poverty Coalition, commented:

As well as operational concerns about the existing Government support, Ministers must also realise that the measures will only seek to prevent additional homes entering fuel poverty and help to stop many of those in fuel poverty becoming utterly destitute. It will not fundamentally improve the situation of the 6m-plus households already in fuel poverty.

We would urge the Government to make further statements to set out additional financial support for people in fuel poverty this winter, announce co-ordinated action to improve the energy efficiency of our homes and ensure we have a secure, renewable-led, domestic energy supply.

Ian Preston, director of household energy services at the Centre for Sustainable Energy said:

It’s not fair that people, especially those on low incomes, are paying for the energy market failure through bills. If the government insists on reclaiming these costs via our bills, then they should be collected at the unit rate so those that consume more energy pay more. The average annual energy bill increase is significant for people on low incomes, who are already having to make tough choices about paying for energy or other essentials like food. They simply can’t cover any additional costs.

Every month, CSE’s advice service helps thousands of people reduce their bills and we’ve already seen unprecedentedly high numbers of people seeking energy saving or financial advice. Urgent support is needed to cope with the UK pandemic of fuel poverty, but the only long-term solution is insulation.

We need to stop energy waste from cold buildings and homes. If you insulate someone’s home, you are literally insulating them against the cost of energy.”

Ruth London from Fuel Poverty Action commented:

Instead of further subsidising investment in polluting fossil fuels, the government should be ensuring that every household has enough energy to keep warm and keep the lights on. Energy For All – a free band of energy to cover basic needs – would spur a sudden interest in insulating UK’s notoriously cold damp homes.

Roni Marsh, Money Advice Team Leader at South West London Law Centres, said:

We are seeing clients on prepayment meters who do not have the funds to turn their gas or electric on. South West London Law Centres provides debt advice to help people reduce debts and access additional funds but this does not fix the fact that someone has not got enough money to afford to buy gas or electric.

We are living in the age of heat or eat and we cannot fix this for a client on a limited income. South West London Law Centres believes that a social tariff is needed. To have to tell someone that there is no way we can reduce their fuel costs any further and give them a foodbank voucher to try and free up the money they would spend on food so they can spend that on fuel instead is not a long term option.

Laura Santamaria, Chair for Fair Energy Campaign, added:

Should a family in a developed country have to choose between heating or eating? As the situation keeps spiralling out of control, the number of households under fuel poverty is increasing exponentially. This unprecedented scenario in UK history has set the scene for urgent action towards energy justice and deep sector reform. Access to clear, affordable energy is a human right.

Jan Shortt, General Secretary of the National Pensioners’ Convention said:

The NPC has also written urging Ofgem and the Chancellor to work together to urgently look at immediate and long term measures to help those struggling with fast rising energy bills. We don’t believe the Chancellor’s emergency measures are enough to deal with the ongoing hikes in energy prices and we need to see a long term strategy from the government and Ofgem.

The NPC is also asking for: the reduction or removal of Standing Charges; a permanent £500 increase in the Winter Fuel Allowance; an end to Price Discrimination against those who can’t pay online, or by Direct Debit, or who don’t have Smart Meters; the removal of 5% VAT on energy; and major investment in insulation of cold, damp housing.

Georgia Whitaker, Oil Campaigner at Greenpeace UK, added:

It’s no wonder the UK is in the mess it’s in given the incessant short-term thinking in government. Yes, urgent financial support is desperately needed for the millions struggling to pay their bills. But without tackling the root-cause of fuel poverty, this crisis is only going to get worse. It doesn’t take a genius to work out that providing warm homes that waste less energy and cost less to heat will bring down bills, so why is the government so reluctant to invest in improving the efficiency of people’s homes?

A spokesperson for the Chartered Institute of Housing added:

We welcomed the Chancellor’s emergency measures to support people in fuel poverty, but they were only a sticking plaster. The best way to help keep people’s energy bills down, now and in the future, is to invest in a national insulation scheme to tackle energy inefficiency in our homes, which are the leakiest in Europe. Landlords need support from the government to do this effectively and at pace, including funding and programmes to tackle the shortfall in skilled retrofitters across the country.

ENDS

Full copy of the letter to sent to the Chancellor and copied to the Secretary of States at DWP, LUHC and BEIS:

The End Fuel Poverty Coalition welcomes the support you outlined in the House of Commons on 26 May 2022.

Two important principles have now been established:

That financial support for those in fuel poverty will be needed in the short-term
That the Government has identified the means with which to fund this significant support

However, we have heard concerns from our Members that there are important questions which remain to be answered by your officials in relation to the support on offer.

There are ten key areas we need clarification on:

How will the scheme work to provide funding to the millions of people on pre-payment meters given the challenges of previously used voucher systems?
What steps can be taken to support those in the Private Rented Sector to ensure landlords pass on the full savings of bills (especially in Multiple Occupancy Households)?
What support will be available to the estimated 200,000 people living in Park Homes?
How can financial help reach those households who do not receive electricity bills?
What will the impact of financial support be on the care charges disabled, elderly and vulnerable people are assessed on?
What will the impact of support be on the benefits cap and the minimum income guarantee?
How will access to the Household Support Fund be made easier and consistent across the country?
What other steps will the Government be taking to ensure full take up of benefits this winter?
How can those living off-gas and people on heat networks be better supported by the Price Cap?
What further steps can be taken to support those households already in fuel debt as a result of recent price increases?

We would also request re-assurances that customers will no longer be penalised for the failures in the energy market through standing charges or other costs added to energy bills.

Members of the End Fuel Poverty Coalition have ideas to help address the above questions and we would welcome the opportunity to facilitate a meeting with you and Coalition Members to discuss the proposed solutions.

We are aware that you will have already heard from our Members that we need urgent, co-ordinated, action to improve the energy efficiency of our homes. We would like to take this opportunity to support these calls and also ask you to prioritise funding for a skills strategy to deliver the “retrofit army” needed to deliver the improvements needed.

We would also request that you recognise that the support provided will only seek to prevent additional homes entering fuel poverty (based on the predicted Ofgem price cap) and stop many of those in fuel poverty becoming utterly destitute. It will not fundamentally improve the situation of the 6m-plus households already in fuel poverty.

Therefore, we would urge you to make further statements to set out further financial support for people in fuel poverty this winter, announce funding for the action needed to improve the energy efficiency of our homes and ensure we have a secure, renewable-led, domestic energy supply.

End Fuel Poverty Coalition calls for further Ofgem action

The End Fuel Poverty Coalition has called on Ofgem to instigate five urgent reforms to the energy market to help the millions of homes in fuel poverty.

In a letter to the chief executive of the regulator, the Coalition calls for Ofgem to abandon plans to introduce a quarterly price cap increase in January 2023 which will penalise households in the depths of winter.

It also argues that changes to the price cap must be made to support those on pre-payment meters and add consumer protection to consumers who live off-gas and on heat networks.

As record numbers of households face fuel poverty this winter, the Coalition also calls for Ofgem to work with energy suppliers to create a package of additional support from suppliers for this winter.

The package suggested would be similar in scope to that introduced during the Covid pandemic, but enhanced in its ambition given the numbers of people expected to be in fuel poverty this winter and extend to debt relief rather than deferral.

The Coalition also calls for urgent reform of the regressive and punitive standing charges regime that penalises the most vulnerable.

Longer-term, the Coalition has formally requested that Ofgem reviews the operation of the price cap and works with consumer groups to set out reforms to the market that would offer more support to those in fuel poverty.

Campaigners have urged the regulator to consider the introduction of a price ceiling (i.e. a “super cap” set at current levels over which consumers will not have to pay for fair usage) and the introduction of a social tariff or “energy for all allowance.”

A spokesperson for the End Fuel Poverty Coalition, commented:

With a new political will to address the challenge of the millions of homes fuel poverty, we need to see Ofgem taking action to better support households across the country.

Ruth London from Fuel Poverty Action, said:

Ofgem has supported higher charges for people on prepayment meters, and has added to the burden of the standing charge element of bills. Both force people on low incomes to pay for energy at much higher rates than the wealthy. The current crisis makes it urgent to reverse this grotesque injustice and bring in Energy For All – a free band of energy to make sure that everyone can keep warm and keep the lights on.

Ian Preston, director of household energy services at the Centre for Sustainable Energy said:

While we welcome new measures of support, these are only short-term sticking plasters. To help tackle soaring energy bills and cold homes we need a longer-term, large scale home retrofit programme. This must include a green skills strategy to ensure there are enough people to do the work across all trades. We also need more support for energy advice services. CSE’s energy advice line calls are at an all-time high, and it’s going to be another tough winter for so many people unless urgent action is taken.

Rhiannon Hughes, South West London Law Centres, commented:

Some people on prepayment meters do not have the funds to turn their gas on. South West London Law Centres provides debt advice to help people reduce debts and access additional funds but there needs to be permanent solutions.

The current system is forcing people into crisis and although advice for fuel bills is critical – a better solution is needed. The high cost of services charges on gas prepayment meters mean that people like my uncle disconnect.

My uncle who is partially sighted, a pensioner and works can not afford to put any money on his prepayment meter, when he does have a bit more cash he tries to turn on his gas for heating but because the service charges have been piling up, it has caused so much debt on the meter that any money he puts on will be swallowed in debt repayment, not on heating.

It is already an unjust situation that is due to get worse so needs urgent reform.

Jan Shortt, General Secretary of the National Pensioners’ Convention added:

The NPC has also written to Ofgem and the Chancellor asking them to work together to urgently look at immediate and long term measures to help those struggling with fast rising energy bills. We are calling for a number of specific actions before the price cap rises again in October to a shocking average of £2,800 a year.

NOTES

Full text of the letter to Jonathan Brearley, Chief Executive of Ofgem, also copied to the Secretary of State for Business, Energy and Industrial Strategy and the Chair of the Commons BEIS Committee:

The End Fuel Poverty Coalition would like to thank you for your appearance at the Commons BEIS Committee which sparked the financial support outlined by the Chancellor on 26 May 2022.

With a new political will to address the challenge of the millions of homes in fuel poverty, we would also request that Ofgem reviews the areas where the regulator could better support households across the country.

First, we would urge you to abandon plans for a quarterly price cap and instead move to a three-times a year (at most) model. This would ensure more flexibility in the cap, but also mitigate a devastating January price increase, as predicted by Cornwall Insight, in the middle of winter.

Second, we need to see reform of the price cap itself – especially so that it does more to help those on pre-payment meters and is extended to cover people off-gas and on heat networks.

More broadly, we also need to see Ofgem lead the way to ensure better support for vulnerable customers, including a package of additional support from suppliers for this winter.

This support should be similar in scope to that introduced during the pandemic, but enhanced in its ambition given the numbers of people expected to be in fuel poverty this winter. We would also welcome Ofgem’s views on how it can ensure no-one is disconnected this winter or abandoned by their supplier.

We also need urgent reform of the regressive and punitive standing charges regime that penalises the most vulnerable. These charges should be reduced. In addition, customers should no longer be penalised for the failures in the energy market, which we will highlight as an issue to the Treasury.

Finally, in the longer-term we would request that Ofgem reviews the operation of the price cap and works with consumer groups to set out reforms to the market that would offer more support to those in fuel poverty. This could include the introduction of a price ceiling (i.e. a “super cap” set at current levels over which consumers will not have to pay for fair usage) and the introduction of a social tariff or “energy for all allowance.”

We would welcome the opportunity to speak to you about these issues at a future meeting of the End Fuel Poverty Coalition.

Joint call for action on fuel poverty and fossil fuels cut

Civil society groups – including the End Fuel Poverty Coalition – have called for greater action on fuel poverty and to cut fossil fuels in the Government’s upcoming Energy Independence Plan

37 organisations spanning fuel poverty, social justice and environmental campaigns wrote to the government on 15 March 2022 calling for greater support for vulnerable households and for decarbonisation to help bolster the UK’s energy security in the imminent Energy Independence Plan and Spring Statement.

The joint letter, addressed to the Prime Minister, Chancellor and Business Secretary, calls for immediate extra support for households facing huge energy price rises, scaled up measures to reduce our gas use and a shift away from fossil fuels to renewable energy.

Measures called for include targeted support that covers the expected rise in energy bills for households on low incomes, long term funding and support for insulation and heat pumps, an expansion of wind and solar energy, and a commitment to rule out new North Sea oil and gas and keep the fracking ban in place.

The letter calls on the government to “ensure the upcoming energy independence plan protects vulnerable households, lowers bills, tackles the climate emergency, addresses air pollution, and gets the UK off gas.”

Juliet Phillips, Senior Policy Advisor at E3G said:

Green homes are the most obvious energy security solution which no one is talking about. Energy security starts at home: this means supercharging a renovation wave to cut energy bills and permanently reduce the exposure of families to volatile international gas markets – boosting energy efficiency and rolling out electric heat pumps. The Chancellor and Prime Minister must seize the moment and push forward an ambitious, long-term plan to support warmer, healthier homes which are cheaper to run.

Rebecca Newsom, Head of Politics at Greenpeace UK said:

This is a fossil fuel crisis, and new fossil fuels from the likes of fracking or new North Sea oil and gas aren’t going to solve our problems. We can reach true energy freedom and stand up to Putin, but that needs the government to back properly funded measures to support households, accelerate renewables and properly fund home upgrades to reduce our use of gas altogether. Otherwise this risks being yet another plan that props up our dependence on volatile and expensive fossil fuels at just the moment we can least afford it.

Dan Paskins, Director of UK Impact, Save the Children UK said:

The cost-of-living crisis, fuelled by soaring energy prices, is totally unsustainable and is hitting the lowest-income families the hardest.

Parents are telling us that they’re struggling to meet basic needs, leaving them having to make impossible choices between heating their homes and buying clothes for their children, and children are paying the price. Without action, things are only going to get harder.

In the upcoming Spring Statement, the Chancellor has an opportunity to ease this burden on families by uprating benefits in line with April’s inflation rate, and invest to keep homes warm and bring fuel bills down.

A spokesperson for the End Fuel Poverty Coalition added:

We’re now seeing the dire consequences of the energy bill crisis come to fruition.

Up and down the country people are scared about how they will make ends meet come 1 April 2022.

A British Medical Journal paper published last week also set out the frightening health consequences for people living in cold, damp homes.

We need greater urgent financial assistance throughout 2022/23 for those in fuel poverty and a long term plan that will rapidly improve energy efficiency of homes across the country.

End Fuel Poverty Coalition writes to Prime Minister

The End Fuel Poverty Coalition has written to the Prime Minister, Boris Johnson, warning of the risks of a future wave of COVID-19 striking during colder winter months.

In the letter, copied to Minister Kwasi Kwarteng MP, the Coalition write:

Dear Prime Minister,

Urgent action is needed now to prevent tens of thousands of needless deaths which could overwhelm the country this coming winter.

Evidence from Public Health England (PHE) shows that fuel poverty puts households more at risk from the worst effects of Covid-19.

However, policy to end fuel poverty has been frozen for three years.

Should a second wave of Covid-19 hit during cold weather, the impact could be catastrophic for individuals and our health services.

Energy use is rising as people stay at home more, incomes are being squeezed and improvements in energy efficiency of housing are on hold.

This means the numbers in fuel poverty are set to soar.

While there is currently no cure for Covid-19, cold homes are entirely preventable and four clear actions must be taken to save lives and help address the financial impact of the current crisis:

Rapid roll-out of large-scale energy efficiency programmes which would also deliver a green economic stimulus that is shovel ready (e.g. retrofitting of people’s homes and improved heating systems). The Government must confirm their manifesto pledge to invest £9.2 billion in building energy efficiency and bring forward £2.8 billion to invest in the next two years which can support 42,500 jobs across the country and help a million households save an average of £270 on their energy bills. 150,000 jobs could be supported to 2030.

Urgent delivery of government promises on tackling fuel poverty, such as extension of Warm Home Discount, introduction of the promised Home Upgrade Grants and social housing decarbonisation programme.

Immediate steps to improve energy standards in the private rented sector, alongside improved security and affordability for private tenants.

Fuel Poverty Debt Relief (not deferral) to ensure fewer people will have to choose between heating and eating.

The End Fuel Poverty Coalition campaigns to influence government and other bodies to take action to end fuel poverty and thereby improve people’s health and quality of life as well as seeking to reduce the cost of living, create jobs and negate carbon emissions in the process. It is a broad coalition of over 20 anti-poverty, environmental, health and housing campaigners, charities, local authorities, trade unions and consumer organisations.

We would welcome the opportunity to discuss this further or to hear your views on this vital issue.

A campaign on the potential devastating impact of fuel poverty combined with COVID-19 this winter will be launched by the Coalition shortly.

To be kept up to date – or join with this campaign – please email info@ endfuelpoverty.org.uk.