Category: Reports

Eight million older people worried about heating their home

More than three in five over-65s (62 per cent) – equivalent to 7.8 million older people – are worried about heating their homes compared to 43 per cent just six weeks ago, according to new research for Age UK.

Ahead of the widely anticipated price cap announcement from Ofgem next month, the new poll shows a sharp rise in concern over energy bills.

Over half (52 per cent) of over-65s – 6.5 million older people – are worried about their energy bills now compared to just under a third (31 per cent) last month, and nearly half (45 per cent) – 5.6 million over-65s – are worried about having to reduce energy use due to financial concerns compared to under a third (30 per cent) in December.

Additionally, 82 per cent – equivalent to over 10 million over-65s – think the Government should step in to help poorer older people pay their energy bills.

The high levels of concern are reflected in a surge of support for the Charity this month, with over 50,000 people adding their names to a letter to the Prime Minister in the past week, urging him to act now to protect older people from unaffordable energy bills.

The Charity is warning that many older people are already feeling the impact of the rising cost of living, with basic household bills fast becoming unaffordable for many pensioners living on a low fixed income – many of whom have few, if any, savings to fall back on.

Age UK has been flooded with stories from thousands of older people who are already struggling and cutting back on heating, food and other essentials. People such as Carol who is 78 and says, “I simply cannot cope with even higher bills”, or Denise who says, “This is so scary.”

Financial support for older people during the colder months has remained broadly unchanged for years and is nowhere near enough to match the scale of the current problem.

In its letter to the Government, Age UK echoed concerns of other members of the Coalition and urged Ministers to announce a financial package to support vulnerable older people through this crisis.

Caroline Abrahams, Charity Director at Age UK, said:

The number of older people who are worried about being able to heat their homes is staggering and should be a source of shame for this Government. Millions of older people across the UK are absolutely dreading the imminent price cap announcement and urgently need reassurance that help is on its way so they can keep their heating on. This is a national crisis which needs a swift and decisive response from Ministers.

Every single day we are hearing heart-breaking stories from desperate older people who are being forced to choose between heating and eating. This isn’t a looming crisis, it’s already upon us – and while the Government is dithering, millions of older people are suffering and putting their health at risk because they can’t afford to keep warm. It is an absolute scandal and one that requires urgent government action.

Energy price rises on the scale we are now seeing are unprecedented and the Government’s response must be equal to the threat they pose to older people, many of whom are vulnerable and struggling to afford exorbitant bills on a meagre state pension.

Anyone who is interested in adding their name to the Charity’s open letter to the Prime Minister can do so by visiting: bit.ly/ageuk-energy. Sources for the press release are available from the Age UK website as well.

Massive increase in children experiencing fuel poverty revealed

An exclusive report in the i Paper has revealed the numbers of children living in fuel poverty.

The report, based on Coalition calculations, shows that 2.2m households with dependent children will be in fuel poverty from 1 April. This is a 74% increase since 2019.

There are 6.6m households with dependent children in England, so this means a third of those households are facing – or already in – fuel poverty. Previous calculations have suggested that roughly a quarter of all households will face fuel poverty, so homes with children are more badly impacted than the national average.
A spokesperson for the End Fuel Poverty Coalition, commented:
With millions of families already in fuel poverty and experiencing the toughest winter on record financially, the figures in the i Paper make for grim reading.
That so many parents are having to make the choice between keeping the heating on and feeding their kids is heartbreaking. Living in cold homes is not just bad for your health, but can also impact on mental performance, meaning this fuel poverty crisis could be affecting children’s education and development.
Fuel poverty is a health and social crisis, but can only be solved by financial and technical solutions. We need urgent Government action to help those most in need now alongside consistent investment and support for energy efficiency measures.

Legal challenge against Government’s fuel poverty failings launched

A legal challenge against the “shocking” and “lacklustre” climate commitments by the Government has been launched by Coalition members, Friends of the Earth.

A Judicial Review, brought to the High Court by the environmental campaign group, will challenge both the government’s Net Zero Strategy (NZS) and its Heat and Buildings Strategy.

It will do so on the basis that the NZS does not comply with the Climate Change Act 2008, which Friends of the Earth was central to devising and securing. The group also contends that the Heat and Buildings Strategy should have considered the impacts of its policies on protected groups, as part of ensuring a fair energy transition where climate action aligns with social responsibility.

Factors such as age (both the elderly and the very young who will live with the greatest future climate impacts), sex, race, and disability can make people more vulnerable to climate impacts. This unaddressed inequality needs transparency and political accountability.

A refusal so far to disclose its equality impact assessment for the Net Zero Strategy has raised similar concerns.

The environmental group is concerned that people in these groups can be unfairly and disproportionately impacted by a badly planned transition to low carbon living. Yet the government has not identified and considered their specific needs as required by the Equality Act 2010.

With the number of households in fuel poverty in England soaring to record levels, Friends of the Earth previously found that people of colour are twice as likely to be living in fuel poverty as white people, while areas identified by the government as having a high number of residents with disabilities or other health needs are more likely to be rated in the worst category for fuel poverty.

The government did not consider these factors which is why the environment group is today taking legal action. The need for a fair and just transition away from reliance on damaging fossil fuels makes these collective legal failures all the more serious.

Katie de Kauwe, lawyer at Friends of the Earth, said:

With characteristic sleight of hand the government has set out an imaginary pathway for reducing carbon emissions but no credible plan to deliver it.

A rapid and fair transition to a safer future requires a plan that shows how much greenhouse gas reduction the chosen policies will achieve, and by when. That the plan for achieving net zero is published without this information in it is very worrying, and we believe is unlawful.

We know that those who do least to cause climate breakdown are too often the hardest hit. Climate action must be based on reversing these inequalities, by designing the transition with the most vulnerable in mind.

Not even considering the implications of the Heat and Building Strategy on groups such as older and disabled people, and people of colour and ethnic minorities is quite shocking, given these groups are disproportionately impacted by fuel poverty, for example.

Housing is a good example because people who need to consume the smallest amount of energy due to cost find themselves trapped in reliance on gas heating in cold, leaky homes. And now people across the country are facing an energy price crisis, with gas prices expected to double compared to just two years ago.

Friends of the Earth is represented in these proceedings by David Wolfe QC of Matrix Chambers and Catherine Dobson of 39 Essex Chambers, and by the law firm Leigh Day LLP.

Cost of cold highlighted in new campaign

An estimated 150,000 older households are likely to be plunged into fuel poverty this winter because of soaring energy prices, according to new analysis by Age UK.

Launching its new The Cost of Cold campaign, the charity issued a stark warning that the number of fuel poor older households could reach over 1.1 million by the spring unless the Government takes urgent action.

Rising energy prices and living costs will lead to some of the poorest pensioners rationing their heating this winter in order to afford higher energy bills.

Age UK believes that rising inflation and escalating prices are now threatening the standard of living of many pensioners on low incomes, creating uncertainty and anxiety as winter begins to bite.  Part of the problem is that many older people are living in hard to heat, older homes and, as a result, often need use a lot of energy just to stay warm.

The cold can be dangerous for older people, especially those with pre-existing health conditions.  Older people tend to feel the cold more than younger people, as it is harder for them to regulate and maintain body temperatures. Low temperatures can increase the risk of heart attacks and strokes in an older person, exacerbate lung conditions and worsen arthritis.

Living in a cold home can also undermine an older person’s mental health, contributing to anxiety, depression and loneliness.

Extra support such as Cold Weather Payments and the Warm Home Discount Scheme are vital tools in the fuel poverty armoury for those on a low income, yet they fail to reach many of those who need them the most because they are not claiming Pension Credit. This crucial benefit opens the door to these and many other benefits, but nearly a million (920,000) pensioner households are missing out on Pension Credit payments worth up to £1.6 billion every year – that’s an average of £32 a week.

Age UK, which is a member of the End Fuel Poverty Coalition, is campaigning for the Government to:  

  • Provide a one-off £50 payment to all those eligible for Cold Weather Payments and expedite existing payments so they arrive no later than seven days after a period of cold weather. 
  • Double the Household Support Fund to £1billion to help safeguard all those on low incomes this winter.  
  • Take urgent action to get Pension Credit – a vital benefit and passport to a package of extra financial support – into the pockets of all those who are eligible. 
  • Ensure the energy price cap is enshrined in law in the shorter term, and then move to re-introduce a social tariff into the energy market to offer protection against high energy costs in the medium term. 

Peter, aged 75, told Age UK:

It’s a simple choice, heat or eat. I already confine myself to one room and stay in bed as long as possible. If I cut down any further there won’t be any point in living.

Geraldine, aged 77, said:

I have arthritis which is worse when it is cold. I will have to keep my heating low now. Already I wear gloves on my hands and a heat pack inside my leggings to help my back.

Caroline Abrahams, Charity Director at Age UK, said:

There’s no doubt that media reports about rising energy bills are filling pensioners on low fixed incomes with absolute dread. More than twenty-five thousand people have told us how worried they are, and it is clear that as things stand, some fully expect to have to choose between cutting down on food or turning down their heating, once the cold weather sets in. Doing either is a potential risk to their health, especially if they are living with serious underlying health conditions like heart disease or COPD.

Age UK is urging older people to call its free national advice line BEFORE turning the heating off or down, to check they are receiving the full package of financial support available to them, including key benefits such as Pension Credit and Attendance Allowance.

In addition, energy suppliers have a duty to offer support if people are struggling with bills or debt, so the Charity is urging people to contact their supplier directly to ask about available support including an affordable repayment plan. 

Age UK’s advice line is open every day (365 days a year) from 8am to 7pm. Information and advice is also available on www.ageuk.org.uk or via a local Age UK.

Reports highlight growing fuel poverty crisis

Two reports have highlighted the gulf between rhetoric and reality in the fight against fuel poverty.

The latest BEIS Committee on Fuel Poverty report revealed that only 15% of funding to improve energy efficiency and help with fuel bills actually went to households in fuel poverty.

Commenting, a spokesperson for the End Fuel Poverty Coalition said:

This is a devastating report which highlights just how much work the government has to do to alleviate the rapidly growing fuel poverty crisis.

Improved financial assistance this winter must be matched by rapid and targeted investment in improving energy efficiency of homes in the long-term. The Budget later this month simply cannot ignore introducing urgent measures to help people.

Meanwhile a report by AgilityEco and Gemserv reveals that current funding and policy to relieve fuel poverty will help only a fraction of the 3.2 million homes that were in fuel poverty in 2019. 

The legally binding target to all but end fuel poverty by 2030 requires a further £18 billion to be spent in fuel poor homes across the rest of the 2020s. Even if some proposed action is taken, double the amount of current funding is still required for energy efficiency programmes.  

A spokesperson for Coalition members, National Energy Action, commented:

The urgent need to provide additional support to fuel poor households has never been greater. We know what needs to be done and how far current policies will take us. We also know all too well the consequences of not meeting our legal duties to help the poorest households who live in the least efficient homes.

Beyond directly supporting the most vulnerable households through this winter and better targeting of current policies, we need to boost investment to improve home energy efficiency in fuel poor homes. Public investment in keeping people warm and well pays for itself and will deliver huge national benefits.

The Treasury’s upcoming Budget and Spending Review provides a vital opportunity to protect health outcomes and support the most vulnerable people across the United Kingdom as well as delivering the Government’s levelling up agenda.

Image: Mike McBey / Flickr / Creative Commons

New figures show 3m households face fuel poverty

Press Association have reported that the English government has released the latest fuel poverty statistics, the first since an updated definition of fuel poverty was adopted.

The change to the definition came following a consultation on a new fuel poverty strategy for England.

The Coalition supported the widening of the definition to include all low income households living in cold homes (the ‘Low Income, Low Energy Efficiency’ indictor). It is believed this will better incentivise energy efficiency.

This initially suggested that the number of fuel poor households in England would sit at 3.66 million: an increase from 2.4m using the previous definition.

However, the new figures from the Department for Business, Energy and Industrial Strategy suggest the proportion of families in fuel poverty will fall from 13.4% or 3.18 million homes in 2019, to 12.5% or 3 million homes in 2021.

The latest figures suggest 180,000 households are being brought out of fuel poverty between 2019 and 2021, around 90,000 a year, driven by improvements to energy efficiency that lift properties up to a rating of C or above. But nearly half of low-income households are still living in homes with poor energy efficiency.

A spokesperson for the End Fuel Poverty Coalition said:

These figures are the first under the new measurement for fuel poverty and show the scale of the challenge facing governments – both at a national and local level.

While any predicted reduction in fuel poverty is to be welcomed, we are concerned that the reduction in Covid financial support later this year will offset any improvement predicted.

We also need to see continued and renewed emphasis on delivering policies that will end fuel poverty as quickly as possible.

Image: Shutterstock

Warning of difficult winter ahead for fuel poor households

A new report warns of significant hardship for fuel poor households in the coming winter, as a potent combination of higher energy use resulting from staying at home for longer is mixed with reductions in income.

The UK Fuel Poverty Monitor, produced by fuel poverty charities National Energy Action and Energy Action Scotland, collected evidence from 73 organisations to understand the impact that Covid-19 has had on energy consumers, and look ahead to the challenges they will face this winter.

The research found that three quarters of frontline organisations are concerned that there is a high risk that fuel debt will increase this winter as a direct result of the pandemic, while 98% believe that there is a moderate or high risk of more households cutting back on their energy use due to being forced to spend more time at home during lockdown periods.

The risks were found to be most acute for prepayment meter households, who found it more difficult to top up when asked not to leave their homes, and many of whom will be in significant debt even before this winter. This creates a particularly stark situation in Northern Ireland, where a far greater proportion of the population uses prepayment energy meters.

This supports broader evidence that this winter will be particularly hard for those that struggle to afford a warm home:

  • Over the last five winters the number of excess winter deaths due to living in a cold home is estimated at approximately 10,000 per year.
  • During the lockdown months, energy efficiency measure installs dropped by almost 90%, the equivalent to 30,000 fewer measures installed.
  • In the event of a winter lockdown, families in cold, leaky homes would face heating bills elevated £49 higher than those in well insulated homes.
  • One in three British households are concerned about the health impacts of living in a cold home this winter.

Adam Scorer, Chief Executive of National Energy Action (NEA) said:

Cold weather always hits fuel poor households hard. This winter, the mixture of reduced incomes, higher energy costs and the heightened risk of contracting COVID-19 will be a lethal cocktail for thousands of vulnerable people.

The experience of frontline organisations, working with some of the most vulnerable households, cries out for increasing the level of support and advice that is available

In the spring we needed to react quickly and adapt to the crisis. That happened pretty well. For the winter we can plan and resource properly. If we don’t, the cost will be high indeed”.

Frazer Scott, Director of Energy Action Scotland (EAS) and co-author of the report concludes:

 Scotland is facing a particularly challenging winter this year. As industry struggles to return to work improving housing for the most vulnerable, and job losses combine with the end of debt repayment holidays, tens of thousands of households are facing a very worrying time.

Estimates see fuel poverty rates in Scotland rising to 29% of households many of whom will be facing the threat of a harsh Scottish winter in a cold, damp home. Many of these people will become ill in an all too familiar pattern and will be forced to rely upon NHS Scotland which is already facing unprecedented pressures on its services this year.

Unlike some of the problems we face as a country, there are many proven solutions to fuel poverty. Let us make this the year we act upon them and prioritise the most vulnerable in society with help.”  

Although there are increased risks this winter, the report finds that action can still be taken to mitigate the impacts of the virus on fuel poor households this winter by:

  • Improving the identification of customers in need, by using all available data.
  • Improving the awareness and communication of available assistance.
  • Providing support for prepayment energy customers.
  • Addressing the increasing amounts of energy debt that have accrued as a result of the crisis.
  • Addressing a hiatus in policy making, and policy programme delivery

Latest fuel poverty data published

The latest data shows that 2.4m households are classed as being in fuel poverty in England.

This represents 10.3% of the population, which is down 0.7 percentage points from the previous figures.

The figures are based on the “old” definition of fuel poverty and not the one recommended by the End Fuel Poverty Coalition in its response to the fuel poverty strategy consultation.

Therefore, the numbers should be treated as an under-estimate of the scale of the problem.

Additionally, the Government has admitted that it does not have enough information to develop assumptions about the impact of Covid-19 on the numbers of households in fuel poverty.

Reports suggest that domestic energy use has increased 15% in the UK during lockdown and the huge increase in the number of people applying for Universal Credit suggest that many more may be struggling with their energy costs.

Adam Scorer, Chief Executive of fuel poverty charity National Energy Action which is a member of the End Fuel Poverty Coalition, said:

Every year around 10,000 people die directly as a result of a cold home. Many thousands more who cannot afford to keep their homes warm are hospitalised, suffer from a severe respiratory condition or just shiver in damp, cold homes.

Over the last decade more than 100,000 people in the UK have lost their lives to a cold home. It is chronicled each year in official excess winter death statistics. Unless the numbers are exceptional, that annual figure seems to be regarded as not ‘excessive’ at all, but within the bounds of some perverse statistical acceptability.

The impact of Covid-19 is truly horrific. But we have been fortunate that, so far, the virus has struck hard during warmer weather.  The possible coincidence of a further wave in a cold winter should make us think long and hard about the steps we need to take to avoid the deadly collision between Covid-19 and fuel poverty related mortality.

Among the many policy decisions delayed due to the coronavirus response are new Fuel Poverty Strategies, decisions on the main fuel poverty programmes and the centrality of domestic energy efficiency within an infrastructure strategy. The delay is understandable, and if used to make the hard connection between cold homes, ill health and vulnerability to early death, that delay could be beneficial.

Cold homes create underlying medical conditions. They take thousands of lives. Deaths and suffering from fuel poverty are not novel, unimaginable or unprecedented. It is an annual catalogue of failure, as society and successive governments to protect the most vulnerable. We know the cause, the scale and the consequence. We know the solutions. At this precise moment we should be more alert to these issues than ever before.

 

Two million households could miss out on vital lifeline

A new report released today warns a scheme which provides a payment of £140 towards energy bills – the Warm Home Discount (WHD) – could end in March 2021, despite it providing a lifeline to millions of pensioners across Great Britain.

The authors also highlight that up to two million working age households across Great Britain could already be missing out on the energy rebate each winter, leading to difficulties keeping homes at a safe temperature.

National Energy Action (NEA) and Fair By Design (FBD) have teamed up to call for an extension and expansion of the scheme to ensure all eligible low income working age households receive the rebate automatically without needing to apply each year to their supplier.

Peter Smith, Director of Policy and Research at NEA commented:

For nine years the Warm Home Discount scheme has been hugely successful in ensuring that the most vulnerable pensioners receive vital rebates automatically and are better able to afford to keep their homes adequately warm over winter.

It’s crucial this continues. Legislative powers were also passed in Parliament three years ago which allow the Government and suppliers to provide this support automatically to working age households too but up to two million Brits  are missing out on £140 energy rebates each year.

This is despite them being eligible for support and paying for the cost of the policy through their energy bills.

NEA and FBD say most poorer customers miss out each year because the Warm Home Discount is poorly advertised which means many are unaware of its existence. And even when customers are aware and apply, their applications can be unsuccessful because there is only a finite amount of money available for the limited annual budget. Smaller suppliers are also not required to provide the WHD meaning some customers switch suppliers in order to benefit from a cheaper deal but end up losing their entitlement to the £140 rebate making them worse off.

Carl Packman, Head of Corporate Engagement at Fair By Design said:

Many low income households are already compelled to make a choice nobody should have to make: to heat or to eat.  At the same time many pay a poverty premium for the way they pay for household heat, which makes that desperate situation even worse.

The Warm Home Discount is a lifeline for many struggling to heat their homes, to levels many of us take for granted. But there is a risk the scheme will end in March 2021.

Putting £140 back in the pockets of millions of working age people will mean they pay a fair price for their energy. It mustn’t be underestimated just how valuable this measure will be.

NEA and FBD are calling for Government to extend and expand the Warm Home Discount scheme for at least three years and ensure smaller suppliers are also required to provide the WHD. Current powers within the Digital Economy Act allow Government to ensure that all those eligible for the WHD rebate actually receive it without reducing benefits for low income pensioner recipients who are most risk of dying over winter.

WHD Industry Initiatives also fund the work of community and voluntary organisations to deliver assistance with debt and energy advice. Without a commitment to the extension of this element of the scheme NEA and FBD have warned that this work will cease.

NEA and FBD’s full briefing highlights how this can be achieved in a cost neutral way. Smith concludes:

We hope the UK Government, Ofgem, parliamentarians, and energy companies work together  in 2020 to ensure that the scheme continues and expands after 2021.

Third of benefit claimants fall behind on bills

New data from Citizens Advice shows 49% of benefit claimants affected by the benefits freeze have struggled to meet essential costs such as rent, household bills and food while 40% have lost sleep due to money worries in the past 12 months.

The report, achieving income security for all, found that 33% have fallen behind on household bills (such as their energy bills) and 38% have gone without essentials like heating or food.

The findings are worse for Universal Credit claimants, with over half (55%) having gone without essentials such as food, and 51% saying they have lost sleep because of their finances.

The charity is calling for increased financial support for people claiming benefits as it finds almost two in five (39%) people who claim have less than £100 at the end of each month, after paying for rent or their mortgage, food, council tax and household bills.

Disabled people and people with children were more likely to have gone without essentials such as food and toiletries. Around 44% of disabled people’s households and 45% of households with children went without in the past 12 months.

Citizens Advice is calling on the government to end the freeze on benefit rates and reduce the five-week wait for Universal Credit claims.

Since April 2016, the level of most benefits like Universal Credit and Tax Credits has been frozen.

This is having serious consequences for people with over a quarter (27%) of people claiming benefits saying financial worries have made them feel lonely/isolated. Some 29% say financial worries have affected their mental health.

Citizens Advice provides free, independent and impartial advice in England and Wales and last year we helped 580,000 people across England and Wales with their benefits. Some one in six households in the UK claim income-related benefits.

Citizens Advice is calling for urgent solutions from the government:

  • End the freeze on benefit rates. Uprate payments by the Consumer Prices Index plus 2% for four years. Recalculate the Local Housing Allowance to at least the 30th percentile of local rents and re-establish the link with rental prices.
  • Reduce the five-week wait by bringing forward the first non-repayable payment to no later than two weeks into a Universal Credit claim.

Gillian Guy, Chief Executive of Citizens Advice, said:

The benefits system is designed to help people with their finances in times of need, but too often our frontline staff and volunteers see a different story.

We’ve found people are losing sleep and unable to afford essential things like food and housing while receiving Universal Credit. It is totally unacceptable that our benefits system is not providing the financial safety net that people need.

The government needs to take urgent action in this week’s spending review by reducing the five-week wait for Universal Credit and ending the freeze on benefit rates.

Danielle, a parent of two children who was helped by Citizens Advice, said:

I have been through so much in the past year. I was diagnosed with breast cancer. I went through chemotherapy and now I am in remission and healthwise am doing so much better.

Universal Credit during this time added so much stress that I did not need. My payments were delayed when I went from being self-employed to being off due to needing chemotherapy.

Thankfully I have family who were able to help me to make sure my rent was paid. And I repaid them when I received my Universal Credit payments. But the stress of thinking I might not be there for my children and how I would pay my bills was at times unbearable.