Budget Archives - End Fuel Poverty Coalition

Warm Homes Plan “downpayment”, but no additional energy help in Budget

The first Budget of the new Government gave little for fuel poverty campaigners to welcome.

While investment in energy was confirmed and a “down payment” on the Warm Homes Plan was highlighted, there was no further support for households with their energy bills.

A spokesperson for the End Fuel Poverty Coalition, commented:

“The only way to bring down bills permanently is through investment in insulation, home improvements, renewables and infrastructure which will free us from volatile gas prices forever.

“But after the Chancellor’s speech, uncertainty remains whether Ministers will be able to confirm the £13.2bn promised to help people improve their homes.

“And despite the Chancellor taking Winter Fuel Payments away from millions of older people with disabilities and health conditions, there was no support for vulnerable households with their energy bills now.

“The increase to the Household Support Fund announced today is essentially an extension of the current Fund through to the end of March 2026 at the same level as under the last Government and with no adjustment for inflation.

“And with more older people turning to the Fund, local authorities will find it stretched even further.

“What we needed to see in the short term was a restoration of winter fuel payments, an expansion of warm home discounts and reforms to improve and extend cold weather payments.

“Longer term, the Chancellor also needed to commit to a social tariff providing a unit rate discount on energy alongside existing support.”

Warm This Winter spokesperson Caroline Simpson said:

“The Government has done a lot to move us on from energy price shocks in the future with the clear commitment to clean energy.

“But while £3.4 billion is a welcome first instalment on the Warm Homes Plan, it is only the start of the journey.

“We desperately need to see a full £13.2bn turbo charge to the Warm Homes Plan and a 10 year strategy to keep people warm every winter through better housing and energy efficiency.

“For those suffering in cold damp homes now – especially those with disabilities, heath conditions and who have lost the Winter Fuel Payment – the majority of voters also want to see help now.

“In fact 75% of the public say there should be financial help for older and disabled people to pay their energy bills. The public also think the wider energy sector, who have made £457 billion in profits since the start of the energy crisis, should pick up the tab for a new social tariff.

“We urge the government to look at this as a way forward.”

Frazer Scott from Energy Action Scotland, posted on X:

“Nothing in the budget to help people across the UK access affordable energy. We need UK and devolved governments to work better together because the dial isn’t shifting based on their individual interventions.”

National Energy Action Chief Executive Adam Scorer commented:

“This Budget will not lessen the impact of unaffordable energy bills and record levels of energy debt this winter. With likely increases to energy bills later in January, things will remain bleak for some of the most vulnerable households across the UK.

“A longer-term Warm Homes Plan designed to help fuel poor households is more vital than ever. A downpayment is welcome, but we need the full detail and investment promised in the Labour manifesto.”

Ellie Mae O’Hagan, UK Energy Programme Leader for E3G said:

“The initial £3.4 billion announced over three years for retrofitting homes will provide industry with welcome investment certainty but is well short of the Labour Manifesto pledge to invest £13.2 billion over the Parliament.

“The door has been left open to boost this investment in the Spending Review due in the Spring. This must now be delivered so that people can get the warm homes they deserve.”

Paul Kissack, Chief Executive of the Joseph Rowntree Foundation said:

“Today’s actions alone won’t be enough to fix the foundations for millions who struggle winter after winter in devastating hardship. The Chancellor is right that change must be felt. The people who needed to feel the most change are those living in and at risk of hardship.

“Limiting the devastating impact of deductions is a good step. There was also welcome investment in social homes, help for carers to work and care, and a rise in the minimum wage.

“It’s deeply worrying that we haven’t seen changes to social security that will seriously bring down hardship. In particular private renters will feel let down by the choice to keep Local Housing Allowance frozen means that it will become further out of step with local rent levels, which have soared in recent years.

“People receiving sickness benefits also face a fearful future at a time when almost two thirds of those experiencing destitution have a long term health condition. The government has failed to explain how they will save £3bn from the benefits bill and will offer no certainty and more anxiety rather than the respect they deserve.”

Independent Age Chief Executive Joanna Elson, CBE said:

“Today’s Budget was a mixed bag for older people in financial hardship. There were some welcome announcements from the UK Government’s including the continuation of the Triple Lock, changes to the earnings limit for Carers Allowance, investment in Discretionary Housing Payment and an extension to the Household Support Fund. All of these have the potential to help older people in financial hardship.

“However, many older people living on low incomes will be incredibly concerned that the UK Government is going full steam ahead with plans to means test the Winter Fuel Payment. At the very least, this change shouldn’t be made until Pension Credit take-up is substantially increased. The latest figures show that up to 970,000 eligible older people could be missing out on Pension Credit, and now they will lose the Winter Fuel Payment despite living on a low income. This will have a devastating impact on older people in financial hardship across the country. The people we speak to at Independent Age are planning to make drastic cutbacks just to get by, from heating one room in their house to visiting public places just to stay warm.

“Many people experiencing poverty in later life will feel their voices have not been heard today, with few policies that will quickly get financial support to them. For example, the UK Government could have widened the Winter Fuel Payment eligibility to include those receiving Housing Benefit, and committed to the annual uprating of Local Housing Allowance.

“In the long-term, nobody should have to worry about their finances as they age. In the future we want to see national social tariffs for water and energy, this will help protect those on low incomes from spikes in costs like we have seen recently. It is also time for politicians to agree on what an adequate income in later life should be to avoid financial hardship.

“Our latest polling found that 87% of people aged 65 and over think the UK Government doesn’t understand the issues facing older people, and sadly it is hard to see enough in this Budget that will change this view.”

Critically low energy usage hits fuel poor during cold weather

Some of the UK’s poorest households use 21% less energy during cold weather than other households, leaving them exposed to potentially dangerous cold damp homes, according to new research.

Research also finds that households on smart prepayment meters could not stay warm when it got really cold and became disconnected from their energy.

Those most affected were households identified as vulnerable and listed on the Priority Services Register – the sick, disabled, elderly and young.

The analysis has been conducted by a group of academics from the UCL Energy Institute, University of Oxford Environmental Change Institute and Cambridge Architectural Research.

Eoghan McKenna of the UCL Energy Institute said:

“We know that these fuel poor households are living in colder homes, and that they cut back on their heating in response to the rise in energy prices.”

Academics found that the poorest households are those least able to respond to the coldest weather and examined the Cold Weather Payments system. This pays out £25 to eligible households after there has been a week of below freezing weather, but was found that it covered less than half the extra cost of keeping warm during a cold snap.

The scheme was condemned by a House of Commons Energy Committee report as “an outdated, old-fashioned scheme.”

As reported exclusively in the Mirror, the new paper recommends that an Extreme Weather Payment system is set up that credits the energy account of all eligible households on every day that the Met Office declares the minimum temperature will be -4 degrees Celsius or lower on the following day.

The payment of £10 per day would be made in advance of the cold weather, on a daily basis. It should be available to all vulnerable households to offset the extra cold and existing fuel poverty.

Dr Tina Fawcett of the Environmental Change Institute, Oxford University, said:

“This simple change, which will not be expensive, will help households stay warm when it really matters. It will ensure the Government can deliver the right support at the right time.”

A spokesperson for the End Fuel Poverty Coalition, commented:

“Exposure to critically low levels of energy use in fuel poor households means that they are not heating their homes to an adequate level – leaving them to live in cold, damp conditions.

“While energy saving through better insulation and ventilation of properties is part of the long term solution to people living in cold damp homes, we need emergency support for households for foreseeable winters.

“For a Chancellor suffering from the political fallout from the Winter Fuel Payment cuts, a modern, updated, compassionate level of support during cold weather should be an obvious step to take.”

Jason Palmer from Cambridge Architectural Research and UCL added:

“It is extremely worrying that households in fuel poverty are cutting energy use compared to other households when it is coldest. This puts their health, and ultimately their lives, at risk.”

ENDS

Brief report available to download: Cold Weather Payments Analysis

Public support for energy social tariff surges ahead of the Budget

A huge majority of the public back the Government providing more support to vulnerable households with their energy bills. [1]

Following the Chancellor’s removal of the Winter Fuel Payment from most pensioners, 67% of the public now want to see Ministers take action to boost other energy bill help.

Three quarters of the public (75%) also back the Government bringing in a social tariff to provide a discount on energy bills to those in greatest need of help.

The new polling by Opinium for the Warm This Winter campaign reveals that support for a social tariff has surged from 57% of the public backing the move in a similar poll published before the General Election.

In the new figures, while 12% don’t know if they back the move, 13% oppose the plan.

A social tariff offers lasting protection to those who depend on heating and electricity the most for their health and well-being, reducing the unit cost they pay and shielding them from volatile and persistently high energy costs.

In the run-up to the 2024 election, the Labour Party committed to deliver a “fairer energy system for everyone” and over half (55%) of Labour voters said that this made them more likely to vote for the party in July’s election. [2]

But after many pensioners have now seen their winter fuel payments removed, 78% of the public called for a social tariff to be made available to older people.

86% felt that those who are dependent on powered medical equipment in order to stay healthy at home (e.g. dialysis machines, oxygen concentrators, artificial ventilators) or rely on energy to power equipment (e.g. charge wheelchairs, run fridges for medicines) should get the tariff.

Similar high levels of support were found for the social tariff going to those who have respiratory diseases (81%), have cardiovascular disease (77%), have a disability (76%), are financially vulnerable (72%) or are at risk from not using energy due to money worries (69%).

As in previous polling, the public backed the social tariff being paid for by the energy industry (producers, networks and suppliers). There was also support for the cost being split between industry and general taxation.

The most recent energy industry profits tracker shows that over £457bn in profits have been generated by firms since the start of the energy bills crisis. Over £1,200 per household in profit has been generated by network operators and transmission firms alone. [3]

There was almost no support for it being fully funded by spreading the costs across everyone else’s energy bills, which is usually what happens with support schemes at present.

Warm This Winter campaign manager, Caroline Simpson, commented:

“The public believe that a social tariff must be implemented and this needs to be done as soon as possible to avoid more scenes of vulnerable people living in cold damp homes every winter. Hard-pressed bill payers also want to see this programme paid for by energy industry profits.

“Most also agree the only way to bring down everyone’s bills in the long term is to help households reduce their energy use, by insulating and ventilating the UK’s housing, which is some of the leakiest in Europe. But in the meantime we must ensure we protect the most vulnerable people in our society from the continuing high cost of energy driven by volatile gas prices.”

In the run-up to the 2024 election, the Labour Party committed to deliver a “fairer energy system for everyone” and over half (55%) of Labour voters say that this made them more likely to vote for the party in July’s election.

But after many pensioners have now seen their winter fuel payments removed, 78% of the public called for a social tariff to be made available to elderly people.

A spokesperson for the End Fuel Poverty Coalition commented:

“This autumn is being dominated by the Chancellor’s cold hearted decision to remove Winter Fuel Payments from elderly people which we know will hit those with disabilities and pre-existing health conditions very hard indeed.

“But not only is this the wrong policy from a public health perspective, it also flies against popular opinion.

“Protecting vulnerable consumers from energy prices that remain way above 2021 levels is a popular and easy to implement policy. The Government must now prioritise delivering a social tariff while its longer term reforms to boost renewables and its Warm Homes Plan have the time needed to deliver results.

“The public would support this being paid for by the whole energy industry. Producers, transmission firms, network operators, market traders, suppliers and their supply chains could all chip in through their profits to make this happen.”

David Southgate, policy manager at disability equality charity Scope, said:

“It’s clear there is widespread support for making energy bills much fairer for disabled people. The government must listen.

“Life costs a lot more when you’re disabled. Disabled people have to spend more of their income on energy and continually face eye-watering bills. For charging vital equipment like wheelchairs, hoists and breathing equipment, or for more heating to stay warm and well.

“Disabled households are now beyond breaking point. They have cut back everything they can and are increasingly forced into unmanageable debt.

“That’s why Scope continues to call for discounted bills for disabled people. This would finally put an end to the impossible situation millions of disabled people face trying to make ends meet.”

ENDS

[1] Opinium conducted an online survey of 2,014 nationally and politically representative UK adults between 7th and 8th October 2024

[2] 32% of 2024 Labour voters said it made no difference to their vote or they didn’t know. 7% said it made them less likely to vote Labour, but did so anyway.

[3] Data as at 3 September 2024. Researchers examined the declared profits of the 20 firms the End Fuel Poverty Coalition is most asked to comment on. This sample of the industry ranges from energy producers (such as Equinor and Shell) through to the firms that control our energy grid (such as National Grid, UK Power Networks and Cadent) as well as suppliers (such as British Gas). It does not include supply chains nor market trading firms.

Winter fuel payment cuts set to hit 84% of disabled pensioners

Over four-fifths (84%) of older people with a long-term health condition or disability claim they will no longer get Winter Fuel Payments according to new research. [1]

The figures, reported in the Daily Express, suggest that one in five (19%*) people who have long-term health conditions or disabilities, are over 66 and say they will no longer likely get Winter Fuel Payments claim that they are worried about their own safety because of the risks of living in a cold damp home this winter. This compares with 17% of the general public and 14% of all over 65s.

The figures* also indicate that those respondents who claim they are no longer eligible for Winter Fuel Payments and have a physical disability are more likely to live in a home that is often cold and damp than the general population.

81% of older people who are already worried about cold and damp in their own homes claim they will not get Winter Fuel Payments.

While owner occupiers are most likely to no longer get Winter Fuel Payments, 77% of older people who rent will miss out, with those in social housing* especially affected by the cuts.

Commenting on the figures, a spokesperson for the End Fuel Poverty Coalition, commented:

“The data is yet another warning sign. The indications are that older people who no longer get the Winter Fuel Payment are more likely to suffer in cold damp homes this winter than the general public.

“For those pensioners with a physical disability, the situation is potentially even worse. Many do not have access to the means tested benefits needed to claim the Winter Fuel Payment and the Government must urgently assess the impact on this group in particular and provide more support for them.

“Until the Government fully implements its plans to improve insulation and ventilation of buildings as well as stabilise energy costs, vulnerable households will continue to need financial support.

“That’s why the Winter Fuel Payments were so important. The money provided help for older households to stay warm each winter. Sadly, now more older people are expected to live in cold damp homes this winter and this puts them at greater risk of ill health, with over quarter of a million older people becoming so ill they will be forced to the doors of the NHS.”

James Taylor, Scope’s executive director of strategy and social change, said:

“These findings are a shocking indictment of a plan that will leave older disabled people in an impossible situation this winter.

“Life already costs more when you’re disabled. Higher electricity bills because of medical equipment to power. Higher heating bills because of health conditions affected by the cold.

“Since the start of this crisis, we’ve heard from disabled people who are going without heating and forgoing medical treatment. Sacrifices that put their health at risk.

“While some disabled pensioners receive pension credit, there are an alarming number who will miss out this winter. We’d urge anyone who thinks they could be eligible to apply, or to get in touch with our helpline for advice.

“We desperately need a longer-term solution for the eye-watering energy costs many disabled people face, which is why we’re calling for the government to bring in discounted bills for disabled households.”

ENDS

[1] Winter Fuel Payment research by Opinium (undertaken 7-8 Oct 2024, sample of 2,014, weighted to be politically and nationally representative).

Among respondents aged over 66, 88% say they do not receive a qualifying benefit and, therefore, will no longer get the Winter Fuel Payment in winter 2024/25. 2% preferred not to answer or did not know, leaving 10% saying they are on a qualifying benefit.

2024 voting behaviour

90% of Labour voters aged over 66 claim they will no longer get the Winter Fuel Payment

89% of Conservative voters aged over 66 claim they will no longer get the Winter Fuel Payment

96% of Lib Dem voters aged over 66 claim they will no longer get the Winter Fuel Payment*

80% of Reform voters aged over 66 claim they will no longer get the Winter Fuel Payment

Region

93% of Scots aged over 66 claim they will no longer get the Winter Fuel Payment*

91% of people aged over 66 and living in southern England claim they will no longer get the Winter Fuel Payment

88% of people aged over 66 and living in London claim they will no longer get the Winter Fuel Payment*

87% of people aged over 66 and living in the English Midlands claim they will no longer get the Winter Fuel Payment

85% of people aged over 66 and living in northern England claim they will no longer get the Winter Fuel Payment

81% of people aged over 66 and living in Wales or Northern Ireland claim they will no longer get the Winter Fuel Payment*

* indicates that the base sample is below 50 and caution should be taken in using or reporting on this figure with more detailed research required to confirm the findings.

Ministers unveil plans to help renters, but winter fuel payments axe stays

The Energy Secretary has announced a plan to ensure warm homes for all renters – in both private and social rented housing – in his speech to Labour’s annual conference.

What ministers claim is the “biggest boost to home energy standards in history” follows the Deputy Prime Minister’s confirmation of a raft of measures to ensure good quality homes for all.

Under the plans, landlords will be banned from renting out properties that don’t meet stricter energy efficiency standards.

Caroline Simpson, Warm This Winter campaign spokesperson, said:

“This is very welcome news. UK properties are some of the worst insulated in Europe, with millions of Brits currently condemned to living in cold, damp, mouldy homes they can’t afford to heat. With energy bills still 65% more than they were at the start of the energy crisis, home insulation is the quickest way to bring down bills, but is seldom prioritised by landlords.

“The government must now ensure the private rented sector meets its obligations to tenants, as well as ring fencing funding for local authorities to make these promised energy efficiency upgrades a reality for those living in social housing.”

A spokesperson for the End Fuel Poverty Coalition commented:

“People in rented accommodation are almost twice as likely to live in cold damp homes compared with people who own their own properties. [1]

“The Energy Secretary is to be congratulated for recognising the importance of the need for better energy efficiency standards in rented homes, but the Government shouldn’t drag their heels with more consultations.

“This issue has been consulted on widely in the past and Ministers must move to take action. There is no time to waste as improvements will take months or years to be felt by tenants and the longer it takes, the more support households will need to stay warm in the winter.

“That’s why right now we also need to see the Government revoke cuts to the winter fuel payment for this year and commit to more support for vulnerable households so that everybody can stay warm this winter and next.”

However, in her speech, Rachel Reeves refused to back down on plans to cut Winter Fuel Payments from 1.2m pensioners in absolute poverty and for 1.6m older people with disabilities.

An End Fuel Poverty Coalition spokesperson added:

“The Chancellor doubled down on her gamble with older people’s lives to fill a budgetary black hole, which according to reports is £10bn less than was initially claimed. And that’s before the Government takes receipt of the £3bn which it is recovering from the collapse of one of the energy firms.

“While Rachael Reeves tries to claim that the triple lock on pensions is enough to replace Winter Fuel Payments, personal finance experts point out that the rise starts next April, when pensioners face an energy bills crisis now. Equally, there are up to 800,000 of the poorest pensioners who get less than the full state pension and don’t even get Pension Credit.

“And of course, the full rise only applies to the one in four pensioners who get the ‘new’ state pension.”

ENDS

[1] Research by Opinium for Warm This Winter campaign among a representative sample of 2,000 UK adults in November 2023 found 13% of those who own outright and 12% of those who own with a mortgage live in cold damp homes. This compares with 25% of those who live in a private rented home, 23% rented from a local authority and 19% rented from a housing association.

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

Reaction to Spring 2024 Budget

The latest financial statement from the Chancellor failed to meet in full any of the recommendations set out by the End Fuel Poverty Coalition in its budget submission.

While the energy firms Windfall Tax and the Household Support Fund were both extended for limited periods, other support measures end on the 31 March.

The budget also contained no new funding for energy efficiency support.

A spokesperson for the End Fuel Poverty Coalition commented:

“What we needed from the Chancellor was a long term plan for warm homes and cheaper energy, but instead the government has condemned families to another winter in cold homes and has failed to fund reform to Britain’s broken energy system.

“The government is pulling the plug on support for households in fuel poverty. The Energy Price Guarantee and the cost of living payments now join the Energy Bills Support Scheme on a bonfire of policies that were helping people with surging energy bills. The Household Support Fund will be extended, but only for another 6 months – ending before next winter sets in.

“But as this support is axed, the price households pay for their energy is still 60% higher than in 2021 and levels of energy debt are soaring. Meanwhile the wider cost of living crisis means people simply can’t afford to keep the lights on.

“While the extension of the Windfall Tax is a recognition that the energy crisis is not over, economists estimate that it has actually shaved £18bn off the cost of extracting fossil fuels over next three years by increasing energy firms’ tax relief allowances. This loophole must be closed.”

Jonathan Bean, from Fuel Poverty Action added:

“Removing the loopholes in windfall taxes on huge energy firm profits would fund essential energy for all.“

Warm This Winter spokesperson Fiona Waters said:

“Today’s budget is a waste of energy that will still leave millions out in the cold.

“There’s some cold comfort in the extension of the Housing Support Fund but it will barely make a dent in the huge debt ordinary people have now built up as they struggle to pay sky high bills that are still 60% more than three years ago.

“Families, pensioners, children and the poor are freezing as energy companies make a billion pounds in profit each and every week.”

Will Walker from Warm This Winter campaign members Ashden, commented on X that the budget was “barren” and that:

“Unfortunately, what we’ve seen over the last decade from Government is dither, delay and division on net zero. This has undermined business and investor confidence, weakened supply chains and added to UK energy bills.”

Joanna Elson CBE, chief executive of Independent Age, said:

“Today’s Budget was a missed opportunity to help those in later life already living in financial hardship and address the incoming pensioner poverty surge. Cutting National Insurance won’t help the more than 2 million older people living in poverty, or the many more living with precarious finances struggling to make ends meet. Transformative change is needed to improve their lives.

“While the lower energy price cap and the increased State Pension are welcome, there is still a long way to go for older people in financial insecurity to be able to afford even the basics. Bills are still astronomically high, and our helpline hears daily from older people rationing themselves to just one meal a day and washing in cold water to save energy.

“The cost-of-living payments have ended and older people in financial hardship are already at breaking point. While the temporary extension of the Household Support Fund is welcome, long-term solutions are needed to protect them from high household costs. The UK Government needs to introduce a single energy social tariff and water social tariff. This would help shield people of all ages living on a low income, including older people, from high and unmanageable costs.

“Today, the UK Government reiterated its commitment to uprate Pension Credit, but it must now implement a strategic and targeted plan to get this money into eligible pockets. As the latest figures show that up to 880,000 households missed out, an uptake strategy is urgently needed to target those who need financial support but aren’t aware it exists or don’t know they are eligible.

“Pensioner poverty has been steadily rising since 2012. Sadly, nothing announced today will reverse this alarming trend. That’s why we need a cross-party review to establish an adequate minimum level of income needed to avoid poverty in later life. Until that happens, we risk seeing more older people fall into financial hardship.”

Energy bills still set to rise despite Budget

Energy bills are calculated to rise by £285 a year for the coming financial year 2023/24 according to ECIU.

This is despite a Government u-turn on the Energy Price Guarantee which was due to increase bills even further from 1 April.

Meanwhile, calculations show that combined household energy debt could exceed £2.7bn by the end of June 2023.

Other inequalities in the energy market remain with customers paying by standard credit (i.e. paying by cash, cheque or bank transfer) will pay £202 a year more than those on direct debit or pre-payment meter.

Meanwhile some regions, such as Merseyside and North Wales will pay 6.7% more for the electricity than others, such as those in the East Midlands.

A spokesperson for the End Fuel Poverty Coalition commented:

“Despite government support and falling wholesale prices, every household will pay more for their energy this coming financial year than they do at the moment. That’s due to how the energy pricing system works and expected reduced levels of support from the Government.

“This is coupled with soaring food prices and transport costs and no end in sight to the cost of living crisis.

“We need further action to provide energy debt relief to get households onto even keel and long term changes to Britain’s broken energy system. This includes tariff reform and rapid improvements to energy efficiency of housing to ensure we never again see an energy bills crisis.”

Tessa Khan from Uplift, which is part of the Warm This Winter campaign, commented:

“If the Chancellor wants to boost growth he needed to tackle the energy crisis for the long term and he hasn’t.

“Energy bills will still rise, albeit by not quite as much, meaning millions of households will continue to live in fuel poverty. From July, the average household is still set to pay double what they were in 2021.

“Crucially, there is no long term plan here to fix the UK’s broken energy system for good: no support from upgrading homes, nothing to accelerate renewables to shift the UK away from volatile fossil fuels as is happening in other countries.

“While the Chancellor might like to think the energy crisis is over, for so many households and businesses unaffordable energy bills are still a painful reality.”

National Energy Action predict that the number of households in fuel poverty will grow to 7.5m as a result of the Budget announcement.

Graham Duxbury, Chief Executive of Groundwork UK, said:

“We are glad to see the government extending support with energy bills for a further three months and taking steps to tackle the injustice of higher costs for people on pre-payment meters.

“However, more needs to be done to ensure everyone is able to access the energy they need to stay warm and well. Even with government support in place, our Green Doctor energy advisors have been shocked by the level of hardship households have experienced this winter.

“To avoid people suffering unnecessarily in the winters to come, we need a radical plan to eliminate fuel poverty, through increasing the energy efficiency of homes, providing better coordinated advice to the most vulnerable energy users, and investing in the skills and jobs we need to transform our energy infrastructure.

“Doing this is vital to preventing the worst effects of climate change, reducing health inequalities and creating more prosperous communities.”

Chartered Institute of Housing (CIH) chief executive, Gavin Smart said:

“We’re pleased to see the government taking action to support people with high energy bills, by bringing charges for pre-payment meters in line with direct debit customers and extending the current Energy Price Guarantee at the current rate for a further three months. CIH called for this as part of the End Fuel Poverty Coalition. We would however have liked to have seen more support for energy efficiency measures, helping to tackle some of the root causes of current energy pressures.

“Housing was notable by its absence. We are disappointed that the Chancellor did not use this opportunity to restore local housing allowance to the 30th percentile, as we and others had called for. The decision to leave rates frozen at 2020 levels means the affordability gap for private renters will continue to grow, resulting in increased evictions and homelessness. We would urge government to urgently look again at this, particularly given its commitments on homelessness prevention.

“We note that various changes were announced on welfare. We await the details in this in the forthcoming White Paper and will provide further briefing for members on Budget announcements over the coming days.”

Call for social tariff as a quarter of old people live in cold homes

New research by Age UK shows that a quarter (24 per cent) of over-60s are living in homes which are colder than they would like them to be, rising to 27 per cent for older people with a disability.

The polling comes as 100 charities and non-profit organisations across the UK have joined together to call for more targeted support in the form of a social tariff for the energy market to help older and disabled households heat their homes.

A social energy tariff is a discounted, targeted tariff aimed at those in greatest need to ensure they are able to live in their homes comfortably.

The plans have been set out in a letter to the Chancellor and would support low-income households who face a double burden from the rising cost of bills and paying more for their energy due to the poverty premium.

The letter calls for targeted support to be made available to those who need it most – including those on means-tested benefits, disability benefits and Carer’s Allowance as well as those missing out on welfare support but still struggling with their bills.

In addition, National Energy Action and Energy Action Scotland have today released their latest Fuel Poverty Monitor which provides an annual analysis of how the energy crisis has impacted fuel-poor households.

The Monitor confirms that households living on the lowest incomes, in the least efficient homes and on pre-payment meters, are being hardest hit by energy price increases.

It recommends the Government urgently consults on a mandatory social tariff to begin in April 2024, or sooner if practicable, to provide affordable energy for low-income and vulnerable households; and that the focus of this should be to ensure that the targeting of such a scheme goes beyond just those households that receive means-tested benefits.

From April 2023, the Government’s Energy Bills Support Scheme comes to an end and the support provided by the Energy Price Guarantee will be reduced.

Demand for the charities’ services are high and they are being inundated with calls from people in dire need, for example those relying on medical equipment like dialysis machines, who are facing a daily struggle to keep their equipment turned on and stay warm and well.

Caroline Abrahams, Charity Director at Age UK, said:

Imagine having to choose between staying warm, feeding your family, or powering essential medical equipment. This is the reality for increasing numbers of older and disabled households across the country.

Older people are struggling to get by now, and that’s before another energy price increase comes their way in a few months’ time. Many will simply not be able to cope with further price rises and we’re extremely concerned their health and wellbeing will pay the price.

There needs to be much more protection for those who have no other means of paying such extortionate energy costs. The Government must introduce a social tariff for the energy market whilst prices are so high, and ensure we never face a crisis like this again.

Fuel Poverty Monitor author Matt Copeland, head of policy and public affairs at National Energy Action, says:

We spoke to over a hundred organisations across the UK, directly with our clients and polled the general public. From this it’s clear that the energy crisis is having a profound impact on the poorest and most vulnerable households in society.

Whether households are heating just one room for just a few hours a week, or rationing the use of their medical equipment, the results are completely unacceptable in modern day society. So far, the UK Government has offered sticking plaster solutions to the crisis.

What is really needed is structural change to the energy market. We were told time and again that a social tariff is what is needed. Today we come together with hundreds of other organisations to say just that. The UK Government must urgently prioritise work to implement a social tariff as soon as possible.

James Taylor, Director of Strategy at disability equality charity Scope, said:

Astronomical energy bills are pushing disabled people to the brink.

Our helpline has been inundated with calls from disabled people whose bills have doubled or even quadrupled in a year.

Prices will rise again this April but disabled families have nothing left to cut back on. They can’t turn off vital, life-saving equipment and budgets can’t stretch any further.

Other plans for an “Energy For All” allowance for all households to have access to a free band of energy are also being developed by End Fuel Poverty Coalition members.

Coalition responds to Chancellor’s autumn statement

End Fuel Poverty Coalition members have reacted to the Chancellor’s autumn statement as it has been confirmed that Coalition members will be joining forces with others in the Warm This Winter campaign to call for a day of action on 3 December to protest at the lack of UK Government support for those in fuel poverty.

A spokesperson for the End Fuel Poverty Coalition, commented:

The Chancellor has now condemned 7 million households to suffer in fuel poverty this winter. The rise in the energy price cap from April next year could see this figure increase to 8.6 million households.

We are already seeing the horrific impact of living in cold damp homes on children, the elderly, disabled and those with illnesses ranging from cancer to asthma. Even with the additional funding pledged to the NHS and social care system today, we are deeply concerned that it will be overwhelmed by the energy bills crisis and millions will suffer.

The Chancellor could have raised all the money required to save the public from fuel poverty this winter through a more comprehensive Windfall Tax. Instead, he has chosen to protect the profits of oil and gas firms over protecting people’s lives.

A film by the Warm This Winter campaign summarised the criticisms of the Budget.

Tessa Khan from Uplift commented:

The chancellor rightly diagnosed climate breakdown and energy affordability as two of the biggest challenges we face, but has sided today with the industry driving both: oil and gas.

Until this year, the UK offered among the most lucrative tax conditions for oil and gas producers in the world. The rise in the rate of the windfall tax to 35% is therefore welcome, but it is a temporary fix when what is needed is permanent reform.

More alarmingly, Hunt has failed to close the gaping tax loophole that allows companies such as Shell to avoid tax if they invest in new oil and gas fields. It also gives them an even bigger handout if they choose to power their oil and gas rigs using wind – despite the fact that the vast majority of emissions come from burning, not extracting, oil.

Not only will this see billions in lost tax, it sends us in precisely the opposite direction to the one that will get us out of this hole for good.

This is the “highway to climate hell”, that the UN secretary general, António Guterres, warned world leaders about at Cop27.

It is also the route to permanently high energy bills.

Electricity generators have also been hit with a 45% windfall tax but without the generous allowance for new investment that oil and gas companies benefit from.

This is an absurd outcome given the dual crises we face of climate breakdown and energy affordability.

Alethea Warrington, from climate charity Possible, which is part of the Warm This Winter campaign, said:

The Chancellor’s windfall tax doesn’t go far enough on dirty fossil fuels, while clean energy generators got slapped with the biggest single levy increase in the budget.

This is completely backwards.

Oil and gas companies continue to reap eye-watering profits while the climate and people across the UK feel the burn.

The government should act to increase clean, cheap energy by unblocking onshore wind and implement a bigger windfall tax on oil and gas companies.

This would provide the funds we need to keep everyone warmer this winter by insulating our homes and cutting bills for those who need it most.

While the Government did announce funding for energy efficiency measures and a new task force to make it the nation’s mission to improve buildings, Sam Alvis, head of economy at Green Alliance, said:

The chancellor is asking people to wait another three years to get their home insulated when they urgently need help now. Promises for after the next election isn’t good enough.

Today was more about raising money than spending it. It’s right that oil and gas companies are being asked to pay more, but it’s still unclear why the UK isn’t levying the same tax rate as Norway.

While the investment allowance has shrunk for oil and gas, electricity generators aren’t getting the same incentives.