Fuel poverty set to hit 11m households as protesters gather in Westminster

New estimates by the End Fuel Poverty Coalition reveal that the axing of the Energy Price Guarantee could lead to almost 11m UK households in fuel poverty from April 2023.

Based on the latest estimates on energy prices from Cornwall Insight, figures will rise from 7m households now to 10.7m (a rise from 24.5% to 37.6% of households) from April 2023.

While numbers will then fall slightly, it will still leave 10.1m households in fuel poverty in winter 2023/24.

The figures come as protestors gather in London to ask MPs to back plans for a universal basic energy allowance.

This energy allowance, which would meet basic needs for heating, cooking and lighting, is the core component of the Energy For All petition which will be handed into Downing Street today with more than 600,000 signatures.

MPs can also now back an Early Day Motion supporting the Energy For All plans. Ruth London of Fuel Poverty Action said:

Even the Energy Price Guarantee, which was billed as the government’s two-year solution to the price crisis, will not last two years but will end in April.The outlook is frankly terrifying.

It is now all the more essential – and more possible – to win a totally new pricing framework like Energy For All.  Finally there is now support for this inside Parliament.”

A spokesperson for the End Fuel Poverty Coalition, commented:

The government may have brought some stability to the markets, but it has come at the cost of huge instability in households’ finances.

The new Chancellor must work quickly, and with consumer groups and charities, to design a new package of support and energy market reforms that will help those in fuel poverty now and post April.

But while the political focus on energy bills may now have shifted to next April, millions of the most vulnerable will be living in cold and damp homes this winter and will need further financial and non-financial support.

The Warm This Winter campaign has called for GBP14bn of additional financial support as well as non-financial help for households this winter.

Chief among the non-financial asks is an immediate suspension of all forced transfers of households onto more expensive pre-payment meters (PPMs), whether by court warrant or remotely via smart meters.

These demands come alongside calls for more investment in energy efficiency and a move towards a renewable energy future, and away from oil and gas.

Cara Jenkinson, Cities Manager at Ashden, which is part of the Warm This Winter campaign, added:

Poor quality homes that leak energy are currently causing the NHS £1.4bn a year as well as misery for people in damp, cold homes.

To solve fuel poverty for good, we need a rapid scale-up of home retrofit focused on the areas that need it most, with an investment in the construction skills needed so that work isn’t stalled by a lack of workers.

Tessa Khan, director of Uplift, said:

On top of everything else, this government’s plan to fix the UK’s energy system is also in disarray.

We need a government prepared to tackle the crisis at its root, which means moving the UK off volatile fossil fuels with a national insulation programme to cut waste, and a massive acceleration in renewable energy, which is now nine times cheaper than gas.

This is the only way to permanently lower energy bills.

The government needs to stop adding to our problems and fix the ones on their desk. This must begin today with providing more targeted help for those who are going to be hit hardest.

Ross Matthewman, Head of Policy and Public Affairs of the Chartered Institute of Environmental Health said:

The decision to end the price cap freeze after six months rather than the proposed two years will have a devastating effect on households struggling with their energy bills. While insufficient, the two-year energy price cap freeze provided some reprieve to households, who now face grave uncertainty on what support on household energy bills exist beyond April.

We urgently call on the UK government to get a grip, reinstate the two-year energy price cap freeze as well as intervene more broadly to support households struggling with their energy bills.

While we welcomed the government’s Energy Bills Support Scheme, it is apparent that £400 spread over six months is simply not going to be enough to tackle the spiralling cost of energy crisis, with more significant intervention needed.

Not only are we are calling on the government to double the amount of financial support provided to households to protect households this winter, but we are also urging them to introduce a raft of energy efficiency measures. Such measures can act both as a means of supporting households most in need right now as well as shielding households from spiralling energy bills in the long-term.

New chancellor set to axe Energy Price Guarantee from April

Fuel poverty campaigners have reacted with shock to news that the new Chancellor will end the Energy Price Guarantee in April 2023.

A spokesperson for the End Fuel Poverty Coalition commented:

The country was already facing a financial cliff edge in April due to plans to end other support packages, but this cliff edge has now become even steeper.
Without the Energy Price Guarantee, the Government will need to fundamentally reform the energy market alongside providing unprecedented levels of support for energy efficiency schemes and financial support for the most vulnerable.
But any threat to people’s energy security is a threat to their health and wellbeing. If people cannot trust the Government to deliver the support it has promised, what trust can anyone have that they will keep people warm this winter and beyond?
The need for the Government to provide additional support for the most vulnerable this winter has also not disappeared and we hope the Treasury quickly acts to reassure households.

Chaitanya Kumar, head of environment and the green transition at the New Economics Foundation, commented:

The biggest surprise in the chancellor’s statement is to scale back the energy price guarantee, the government’s flagship support programme. The unfrozen price cap is now expected to rise above £6,000 from April 2023, which creates a massive cliff edge for families.

The government should get support where it’s most needed and fix our broken energy market. One way of doing this is by entitling every family to a basic amount of universal energy at free or subsidised rates.

This can ensure that nobody is left to make choices between heating and eating while encouraging those who can afford it to reduce their energy use.

But the only long-term solution to real energy security is to help people cut their energy demand and the first step is to help insulate our homes.

There is still time to roll out an emergency insulation programme this winter that can save both families and the treasury billions.

Henry Gregg, Director of External Affairs at Asthma + Lung UK, said:

Removing the energy price guarantee will spark fear in people living with long-term lung conditions, such as asthma and COPD, who need to keep their homes warm to survive.

People who were already struggling with rising energy bills are now hanging on by a thread with no safety net in place beyond next spring. Millions of people in this country are already living in fuel poverty and an end to the bill freeze in April could negatively impact many, many more.

Lives are already being lost, the Government must act now to prevent further damage. It must commit to helping people with lung conditions, who need warm homes to survive, and provide financial support for people facing extra energy bills for life-saving medical equipment.

Juliet Philips from the E3G think tank tweeted:

▶️Essential gov gets ‘targeting’ right – huge risk that millions could fall through gap with simple metrics
▶️£2.5k is untenable for fuel poor – quantum must be increased for vulnerable
▶️Must boost investment in long-term solutions to lower bills; home retrofits & renewables https://t.co/8b19IDZghZ— Juliet Phillips (@_JulietPhillips) October 17, 2022

While National Energy Action called the plan, said the almighty trade-off “may provide confidence and certainty for markets, it could cause anxiety and doubt for households” leaving families “clinging on by their fingertips.”

Caroline Abrahams, Charity Director at Age UK, said:

It’s been hard keeping up with all the fiscal policy changes the last few days, but they seem to leave us in a position now in which nothing is guaranteed and with the Government increasingly warning of ‘hard choices to come’. This chilling outlook will be a huge concern for our older population, with only the healthiest and wealthiest able to view the future with equanimity.

Pensioners on low and modest incomes, or with high costs, have the most to worry about and for their sake we urge the Government to raise benefits in line with prices, not wages, and to extend help far enough up the income range so that the group once referred to by their party as ‘just about managing’, (i.e. not just those living below the poverty line) also get some support. The truth is that all these groups of older people, numbering several million, need an injection of additional cash to see them through the winter, not only from April 2023 onwards, when we trust that Ministers will keep their promise to reinstate the triple lock. Without more support between now and the spring though, the prospects for pensioners on low and modest incomes and with no savings are bleak, and we cannot see how they will be able to afford to buy even the basics. Without more help it seems certain that some will sink into deep hardship this winter unlike anything most of us have seen before.

Older people depend on being able to access good quality health and social care, and with the quality and availability of these services already severely compromised by shortages of staff and funding, the idea that there could be any further cuts to them is inconceivable. Both need more resources and a long-term sustainable plan for the future, not further cuts and uncertainty.

Like most of the older people we exist to help, at Age UK we are incredibly worried about what may be to come, and we implore the Government to stand with our older population through this crisis.

Government £14bn short on measures to tackle fuel poverty

Around seven million homes in the UK will experience dire fuel poverty without a further £14bn package of emergency support, according to campaigners. [1]

Despite the Energy Price Guarantee, the £400 Energy Bills Support Scheme and other support already announced, more help will be needed to prevent the severe health impacts of living in cold, damp homes crippling the NHS and causing excess winter deaths.

Even including the Energy Price Guarantee, the End Fuel Poverty Coalition calculates that the unit cost of gas has increased by between 153% and 165% since winter 2021, while the unit cost of electricity has increased 63-68%. [2]

The Warm This Winter campaign is now calling for additional financial and non-financial support for households this winter. [3]

Chief among the non-financial asks is an immediate suspension of all forced transfers of households onto more expensive pre-payment meters (PPMs), whether by court warrant or remotely via smart meters. [4]

Financially, Warm This Winter is calling for additional, targeted financial support measures to those who need it most. This would include a third cost of living payment of £325 for those on income linked benefits to be paid on 1 December.

Campaigners have also asked for a further £150 uplift in disability benefits, the restoration of the £20 Universal Credit uplift, increasing the energy bill support payments for people who do not have a mains gas connection and ensuring that all households who received the Warm Homes Discount last winter can access a £150 rebate this winter (regardless of the new process which now uses an algorithm to decide who benefits).

The cost of these additional financial measures would be around £14bn, but the Government could further help those with pre-existing health conditions by suspending all prescription charges in England and suspending any deductions to benefits to recover money owed for a variety of debts and advances, including energy bills.

Sarah Woolnough, CEO of Asthma + Lung UK, said:

With millions of homes set to be plunged into fuel poverty this winter, we’re extremely concerned that the nation’s lung health will rapidly deteriorate if the government doesn’t step up to help the most vulnerable.

If people cannot afford to heat their homes, they may be forced to live in freezing homes where cold and flu viruses can thrive. Cold air is a common trigger for people with lung conditions, with around two-thirds of people with asthma and COPD that we surveyed saying that it can make their symptoms worse.

We know that people with lung conditions are already struggling with price hikes – 1 in 5 that we surveyed said they’d had an asthma attack because of changes they’d made to their lives in response to the cost of living crisis, such as skipping meals, not picking up prescriptions, and using mains-powered medical machinery less. Things will only get worse when temperatures plummet and colds and viruses ramp up.

We need the government to do more for people with chronic health conditions, and to provide targeted financial support for people on low incomes and living with lung disease. Without these measures, there is the real risk that people will be forced to take major risks with their health this winter.

A spokesperson for the End Fuel Poverty Coalition, commented:

In addition to supporting households now, Government policy has created a cliff edge in April 2023, with the Energy Bills Support Scheme and additional Cost of Living Payments due to end.

This will result in the numbers of households in fuel poverty rising to almost eight million. The situation will be made worse if benefits are not uprated by inflation and if prescription charges increase.

Therefore the Government must also set out a medium term plan for financial support while we wait for longer term measures to take effect.

Cara Jenkinson, Cities Manager, Ashden said:

Poor quality homes that leak energy are currently causing the NHS £1.4bn a year as well as misery for people in damp, cold homes.

To solve fuel poverty for good, we need a rapid scale-up of home retrofit focused on the areas that need it most, with an investment in the construction skills needed so that work isn’t stalled by a lack of workers.

Tessa Khan, director of Uplift, said:

On top of everything else, this government’s plan to fix the UK’s energy system is also in disarray. We need a government prepared to tackle the crisis at its root, which means moving the UK off volatile fossil fuels with a national insulation programme to cut waste, and a massive acceleration in renewable energy, which is now nine times cheaper than gas. This is the only way to permanently lower energy bills.

The government needs to stop adding to our problems and fix the ones on their desk. This must begin today with providing more targeted help for those who are going to be hit hardest.

Other measures the government could take to support households stay warm this winter, include:

  • The launch of a centralised public information campaign to ensure people are aware of, and signed up to, the Priority Service Register.
  • Guidance to local authorities on best practice in using the Household Support Fund (HSF) to deliver free boiler repairs (where ECO criteria are not met), providing warm packs and financial support on non-means-tested benefits (e.g. ESA).
  • Work with charities and local authorities to increase the provision of energy advice (for example, single local point of contact for those struggling) and to develop guidance on how social prescribing could be used to help tackle fuel poverty.

Working with landlords, the Government could also support tenants in fuel poverty through:

  • Introducing a social rent cap, alongside ring-fenced funding to social landlords so that energy efficiency improvements are not sacrificed in the event of supply chain costs increasing.
  • Introducing a private sector rent freeze (similar to that introduced by the Scottish Government).
  • Urging local authorities to ensure landlords comply with existing private rented sector regulations – highlighting that enforcing these regulations is cost-neutral in the long term.

ENDS

[1] Fuel poverty levels estimated by the End Fuel Poverty Coalition. For methodology and assumptions visit: https://www.endfuelpoverty.org.uk/price-cap-methodology/.

£14bn made up of:

– £325 to c.8m households – £2.6bn

– £150 to c.16m disabled households  – £2.4bn

– £20/week = £1040/year to c.8m households = £8.3bn

– Additional £150 for c.4m off gas households = £600m

– WHD ask = up to £160m

Full details of Warm This Winter are briefing available on request.

[2] Analysis by End Fuel Poverty Coalition on energy prices, full charts available on request.

[3] Warm this Winter is a new campaign demanding the government acts now to help tackle rising energy bills this winter and to ensure energy is affordable for everyone in the future. It is supported by leading anti-poverty and environmental organisations, including Save the Children, WWF and the End Fuel Poverty Coalition.

[4] The Government could do this by issuing a directive to energy firms and Ofgem instructing them to comply with the terms and conditions of pre-payment meter installations, with stringent enforcement and financial penalty for non-compliance. Given that installing these meters severely limits the amount of energy which can be used by these groups, it cannot be possible that installation of PPMs this winter meets the terms of Ofgem rules that PPMs can only be installed if it is “safe and reasonably practicable” to do so.

Homes to see energy prices surge overnight

As the fall-out continues from the Chancellor’s mini-Budget, new analysis of the impact of the Energy Price Guarantee has revealed a stark winter facing millions of people.

The Government’s plan only caps the cost per unit that households pay, with actual bills still determined by how much energy is consumed.

The End Fuel Poverty Coalition calculates that the combined electricity and gas unit cost of energy will surge for households by between 23% and 27% overnight on Friday. [1]

The level of surge depends on the type of payment method and where people live in the country.

When standing charges are also included in the analysis, those on standard credit will pay 12% more and those on pre-payment meters 11% more than those on direct debit.

While the Energy Bills Support Scheme will lower peoples bills by GBP400 in the short-term, this saving expires in April 2023 creating a fresh hike in people’s bills. For households on benefits, the additional support they have had since May 2022 will also expire early in 2023 making the impact even more severe. [2]

Campaigners have urged the public to take meter readings tonight and submit them to their energy suppliers to ensure they do not incur additional costs caused by the increased unit prices from 1 October 2022.

In addition, the End Fuel Poverty Coalition has urged the Government to go further in support for energy efficiency measures.

In last week’s mini-Budget, over GBP1bn additional funding was pledged to improve insulation of peoples’ homes over the next three years. New estimates show that this falls far short of the additional GBP5bn energy efficiency investment needed.

Meanwhile, the number of UK households in fuel poverty will increase from 7 million from 1 October to nearer 8m from 1 April 2023 as the Energy Bills Support Scheme runs out.

Frazer Scott, CEO of Energy Action Scotland, commented:

This week, every household across the UK must make sure it submits a meter reading to their energy firm to avoid paying a penny more than they absolutely have to when prices go up on 1 October.

Fuel poverty is at record levels, levels of energy efficiency improvements are simply too low to provide respite and financial support is just a sticking plaster on the deepest of wounds.

As unit costs for electricity and gas push bills higher still in October, communities will suffer and take years to recover. Meanwhile the impact of fuel poverty will be felt on the NHS and social care system and lives will be needlessly lost.

Asthma + Lung UK has recently seen calls to the charity’s helpline from people needing advice for help with their finances or benefits soar by 89% [3]. Dr Andrew Whittamore, Clinical Lead at Asthma + Lung UK and a practising GP, said:

Winter is the deadliest season for people with lung conditions. Cold homes are very dangerous for people with lung conditions because they provide the perfect environment for respiratory infections to thrive.

This situation is untenable and Asthma + Lung UK is urging the government to provide targeted financial support to help people with lung conditions with the rising cost of bills and living.

Tessa Khan, director of Uplift which is part of the Warm This Winter campaign, said:

The government’s massive energy bill bailout is costing us a fortune but doesn’t fix the problem at its root: millions of people will still be forced into impossible choices by soaring gas prices and still we have no credible plan from the government to wean the UK off volatile fossil fuels.

With homegrown renewables now nine times cheaper than UK gas, it is 100% in the national interest to accelerate all forms of cheap, renewable energy so that we don’t find ourselves facing the same energy bill crisis in years to come.

Rhi Hughes, Community Engagement Manager, South West London Law Centres said:

All of us will have a lack of control this winter. It won’t be a case of ‘well, I just won’t put the heating on’ or ‘I will use minimum electricity today’ to get us out of this. Although cutting down fuel use will help, our standing charges are going to sharply increase. If we can’t top up our pre-payment meters we will be getting into debt with our service charges and that debt will keep growing.

Such a range of households are going to be hit so hard by the increase. Homeowners in homes that need repairs have leaks, windows that don’t shut, doors that don’t close and they are just going to freeze as they don’t have the money to fix the problem or to put the heating on.

Some tenants are forced to live in such bad condition housing that there is nothing they can do to keep heat in as there are large cracks in walls or ceilings. It is the responsibility of the landlords to fix these issues but they don’t – especially housing association and council tenants. These large authorities are exasperating the crisis for the people they are paid rent by.

A spokesperson for the End Fuel Poverty Coalition, added:

The Government has created a double dose of pain for households. Many will be hit with the rising energy bills immediately, with another dose of pain inflicted when the financial support runs out by April 2023.

We need action now to reassure people that support will continue next year and urgent action to improve the energy efficiency of our homes into the future.

Notes

[1]

Price cap unit rates chart
All financial numbers are quoted in p
DIRECT DEBIT
Cost from 1 Oct 22 Cost until 30 Sep 22 INCREASE FROM SUMMER 22
GAS UNIT (kwh) 10.3 7.37 39.76%
GAS SC 28.49 27.22 4.67%
ELEC UNIT 34 28.34 19.97%
ELEC SC 46.36 45.34 2.25%
1 day of both fuels & 1 kwh used of both fuels 119.15 108.27 10.05%
1 unit of each 44.3 35.71 24.05%
PRE PAYMENT METERS
From 1 Oct Until 1 Oct INCREASE
GAS UNIT (kwh) 10.63 7.36 44.43%
GAS SC 37.51 37.28 0.62%
ELEC UNIT (kwh) 33.08 28.11 17.68%
ELEC SC 51.41 50.27 2.27%
1 day of both fuels & 1 kwh used of both fuels 132.63 123.02 7.81%
1 unit of each 43.71 35.47 23.23%
Uplift from DD 13.48 14.75
% Uplift from DD 11.31% 13.62%
STANDARD CREDIT
From 1 Oct Until 1 Oct INCREASE
GAS UNIT (kwh) 11.12 7.76 43.30%
GAS SC 33.54 32 4.81%
ELEC UNIT (kwh) 36.8 29.85 23.28%
ELEC SC 52.4 51.16 2.42%
1 day of both fuels & 1 kwh used of both fuels 133.86 120.77 10.84%
1 unit of each 47.92 37.61 27.41%
Uplift from DD 14.71 12.5
% Uplift from DD 12.35% 11.55%
Original data unit cost source: https://www.moneysavingexpert.com/utilities/what-are-the-price-cap-unit-rates-/

Combinations, increases and uplifts calculated by End Fuel Poverty Coalition

[2] ​​

Average household bills under Ofgem Price Cap (*) and Energy Price Guarantee (**). All financial numbers quoted are in GBP. “Average household (hh)” Average hh increase Those hh getting max Govt support, average hh rate Those hh getting max Govt support, % increase
Oct-21* 1277 1277
Apr-22* 1971 54.35% 1571 23.02%
Oct-22** 2100 6.54% 1700 8.21%
Apr-23** 2500 19.05% 2500 47.06%
Increase Winter 2021/22 to Summer 2023 96% 96%
Increase Winter 2021/22 to Winter 2022/23 64% 33%

[3] Asthma + Lung UK internal figures. Comparison August 2021 to August 2022. Website traffic on these topics also surged year-on-year by 63%.

Mini-Budget minimal on help for those in fuel poverty

As the Chancellor unveiled his mini-Budget, there was little immediate support for households in fuel poverty. However, some positive moves on energy efficiency and renewables have been given a qualified welcomed by campaigners.

A spokesperson for the End Fuel Poverty Coalition commented:

The Chancellor’s mini-Budget was especially minimal on the support needed to keep people warm this winter.

Even with the measures pledged by the Government so far, there is now just a week to go until energy bills increase by 64% compared to last winter.

The start of the Chancellor’s ‘new era’ will see 7 million households left facing desperate fuel poverty this winter.

Millions of people will spend the winter struggling in cold damp homes. This will cause health problems for many and place more strain on the NHS and social care system.

Millions will face additional hardship due to the unfair standing charges regime and being forced onto more expensive pre-payment meters.

Hidden away in the small print of the Chancellor’s Plan for Growth is an announcement to expand the Energy Company Obligation (ECO) – which requires energy companies to install energy saving measures in fuel poor homes – with a £1bn boost over three years, starting from next April.

The new funding will be targeted at those most vulnerable, and made available for the least efficient homes in lower council tax bands. In addition, the government will also ‘imminently open applications for up to £2.1 billion over the next two years to support local authorities, housing associations, schools and hospitals invest in energy efficiency and renewable heating.’

While the ECO expansion will provide vital relief for the households that stand to benefit, alone it cannot shift the dial on the resilience of UK households to energy price shocks now or in future.

Experts at E3G estimate it is about a fifth of the amount needed to be spent on green building measures and the opportunity was missed to meet the Home Upgrade Grant Conservative manifesto pledge – which is still £1.4 billion short of what should have been committed to 2025.

Juliet Phillips, Senior Policy Advisor at E3G, commented:

The cold and leaky nature of Britain’s homes and buildings have left families sharply exposed to volatile international fossil fuel markets and spiralling energy bills.

Today’s small top-up to expand energy efficiency support is welcome step which will help cut household bills and boost the UK’s energy security.

We hope to see the government go further and faster to unleash the full potential that energy efficiency has to offer to protect UK households from future energy shocks.

Members of the Warm This Winter campaign, Possible, have also highlighted how the mini-Budget appears to have positive news for renewables with an end to the effective ban on building on-shore wind in England.

However, there was little detail on how the nation’s books will be balanced. A spokesperson for Greenpeace commented:

Failing to properly tax the obscene profits of fossil fuel giants and encouraging bankers to get richer is reckless and unfair.

Rather than seeking to deregulate and attack those on benefits, the new Chancellor should be looking for ways to raise taxes on those profiting from the crisis.

This could help fund emergency support for households, and cover the vital investment needed in home insulation to help cut our energy bills and climate emissions once and for all.

Ministers are ignoring common-sense, win-win solutions to bring down bills and carbon emissions – things like stopping energy waste, heat-pumps and solar panels.

Instead of boosting the economy through investments in green infrastructure, public services and skills training, the government’s plan is little more than a charter for fossil fuel profits and casino capitalism.

Earlier this week, Age UK analysis found that from October 2022, around three in ten older households in England will be living in fuel poverty, including 1.3m lower income older households.

Caroline Abrahams, Charity Director at Age UK, commented:

Our new analysis shows that the Government’s relief package will not do enough to prevent approaching two million more pensioners from being plunged into fuel poverty in a couple of weeks’ time.

Most worrying of all, in excess of half a million of them are already living on lower incomes, so they will be in an impossible position financially, unless the Government does more to help.

However hard they try their income is not going to stretch far enough to cover the essentials any more.

Can you imagine how terrifying this prospect is if you are an older person on a low fixed income who has just about managed so far? Once they realise what a deep financial hole they are about to be in our biggest concern is that some will cut their spending to such a degree that it puts them at risk.

The Chartered Institute of Housing has also recently written to the Prime Minister for urgent government action to:

  • Bring forward the planned uprating of benefits from next April to this October
  • Limit deductions from Universal Credit for prior overpayments/sanctions
  • Remove the benefit cap and two-child limit
  • Restore local housing allowance rates to at least the 30th percentile and return to annual uprating
  • Prevent energy companies from forcibly switching customers to prepayment meters
  • Commit to bring forward additional funding for energy efficiency measures in homes

Notes

The average household bill in winter 2021/22 was GBP1277. This has increased to GBP2,100 for winter 2022/23, taking into account the support promised so far. For some of the most vulnerable households, the increase will be limited to an average household bill of GBP1,700 this winter – still representing a 33% increase year-on-year. Please note, the Energy Price Guarantee caps the unit cost of energy, not the total bill.

In winter 2021/22, the End Fuel Poverty Coalition estimates 4.6m UK households were in fuel poverty (based on official definitions). This will rise to 6.99m in winter 2022/23.

Chancellor in last chance saloon to fix UK’s broken energy system

Campaigners from Warm this Winter are urging the Chancellor to back real measures to fix the UK’s energy system, with a rally outside Parliament timed to coincide with the ‘mini-budget’.

Despite the UK Government’s Energy Price Guarantee, it is estimated that 7 million households – over 16 million people – across the UK will still be in fuel poverty this winter.

As well as more targeted support on bills, the coalition is calling for a coherent plan to reduce energy costs permanently through a national rollout of home insulation and a massive acceleration of renewable energy, which is now nine times cheaper than UK gas.

As the Chancellor has previously conceded, doubling down on domestic gas production, whether in the North Sea or fracking, will not lower bills.

On Friday, MPs are being invited to find out more about the campaign’s demands at an event being held in Portcullis House.

This week, more than 70 organisations called for more measures to improve energy efficiency. From energy firms to climate campaigners and from charities to professional bodies, the groups all urged the Chancellor to take action to help people keep their homes warm.

A spokesperson for the End Fuel Poverty Coalition said:

This is the last chance saloon for the Chancellor to provide the support needed by 7 million households to stay warm this winter.

Without this help millions will face the winter struggling in cold damp homes. This will cause health problems for many and place more strain on the NHS and social care system.

We need to see additional short-term measures to provide additional financial help to the most vulnerable.

But we also need to see the Chancellor investing in ending fuel poverty for good.

This can only be done by increasing support for improving the energy efficiency of people’s homes and backing Britain’s generation of cheap and clean renewable energy.

Alethea Warrington, campaigns manager at climate charity Possible, said:

The government has the chance to end the energy crisis and get the UK off gas for good. Onshore wind is now ten times cheaper than gas power, but new wind projects are still blocked in England despite being extremely popular.

A real plan for growth would tax the grotesque profits of fossil fuel companies rather than handing them hundreds of millions of pounds of our money. Then the government should get on with delivering cheap renewable energy and warmer homes.

Tessa Khan, director of Uplift, which campaigns for a just transition away from fossil fuels, said:

In every constituency across the country, many households and businesses are looking at their energy bills with dread, even with this government support, knowing that this situation is unsustainable.

We urge MPs to push for measures that will help people this winter and make sure the country is in a better position in winters to come.

Even if it were possible, more domestic gas won’t lower bills. All it will do is increase industry profits and lock us into an unaffordable energy source for longer than necessary.

Warm this Winter is a new campaign demanding the government acts now to help tackle rising energy bills this winter and to ensure energy is affordable for everyone in the future. It is supported by leading anti-poverty and environmental organisations.

Its demands of government are:

  1. Emergency support now: Provide a new package of financial support to people who, without additional urgent action, will be on the front-line of poverty this winter.
  2. Help to upgrade homes: Launch a properly-funded programme of home upgrades and insulation across the UK to bring down bills and prevent energy waste.
  3. Cheap energy: More than triple the amount of renewable energy in the UK by 2030, including wind and solar generated in harmony with nature, so that we can permanently lower bills.
  4. Free us from oil and gas: Stop opening up new oil and gas fields so that we can escape our dependence on volatile fossil fuels.

Notes to editors

[1] Members of the Warm this Winter coalition will stage a ‘mini-rally’ in Parliament Square from 12.30-1.30pm, when there will be an opportunity for photographs.

There will also be a drop-in for MPs in Room P, Portcullis House from 10-12pm, where will MPs will be able to be introduced to and able to ask questions about the campaign.

Energy bills crisis demands Emergency Budget

Campaigners have urged the Government to deliver an emergency budget to address the cost of living crisis facing the country.

The End Fuel Poverty Coalition has made the call as Ofgem projections firmed up the nightmare scenario of further energy bill rises this winter. [1]

With the number of homes in fuel poverty expected to surge to 43% by this winter, campaigners have warned only an emergency budget will solve the crisis gripping the country. [2]

A household that was paying GBP1,000 for their energy bills in October 2020 could soon be paying almost three-times that. And with inflationary pressures also affecting food prices, the outlook is bleak.

If fuel poverty levels hit the limits predicted, the End Fuel Poverty Coalition estimates that thousands of additional winter deaths will take place due to cold homes in 2022/23 – mainly among the elderly and vulnerable. [3]

To avoid the predicted disaster, the End Fuel Poverty Coalition, has called on the Chancellor to deliver an emergency budget consisting of:

  • A 50% Windfall Tax on all Energy Production Firms Profits yielding revenue well in excess of GBP20bn, this may have to be levied every year until the Price Cap returns to a more affordable rate or the market is reformed. [4]
  • An annual Anti-Fuel Poverty Payment (AFPP) of GBP1,800 to the lowest income households, including those newly facing fuel poverty this winter. [5]
  • A one off £20,000 investment in each of the fuel poor households in the UK that are dependent on oil, LPG or coal for heating to improve their homes so they are well insulated and using a cheaper, less-polluting fuel – heat pump or new night storage heaters.
  • In future years, any excess revenue generated by the Windfall Tax could raise additional funding for the Emergency Hardship Funds available to local authorities and charitable organisations working with vulnerable groups to deploy.

In addition to the Windfall Tax, the Government must urgently fulfil the promises made in its 2019 Conservative party election manifesto that would help lower energy bills by investing £9.2bn in the energy efficiency of homes, schools and hospitals in England, including £2.5bn for the Home Upgrade Grant Scheme. To date, less than half of the Government’s 2019 manifesto pledges on fuel poverty have been committed. 

The Coalition has also urged BEIS to launch a fundamental review of the UK Energy Market to address concerns which will persist even after the emergency financial measures suggested. This review should consider alternative proposals put forward by campaigners such as the idea of “social tariffs” or a state-funded energy allowance for all.

For example, the average unit of gas has been sold up to 22 times before it gets to customers’ meters, meaning several private firms all making fuel bills that much higher. Consumers have also been required to bail out the costs of 31 companies going bankrupt as a result of Ofgem’s inadequate regulation. [6]

Dr Brenda Boardman, Emeritus Fellow, Environmental Change Institute, University of Oxford, commented:

The injustice of it all is just incredible. We desperately need an energy market that is designed around the needs of the consumers, not the needs of the suppliers. This is, after all, a basic necessity, that is ultimately about life and death, as well as comfort, good health and child development.

A spokesperson for the End Fuel Poverty Coalition added:

Previous measures implemented by the Government to tackle fuel poverty do not scratch the surface and the majority of the help has gone to all households, not necessarily those in fuel poverty specifically. Significant sums have also been spent on the petrol and diesel rebate, which goes to better-off households, who own cars and drive the most.

Only an emergency budget will ensure the measures can be introduced to tackle the cost of living crisis.

Ruth London from Fuel Poverty Action commented:

With over 40% of UK households in or heading for fuel poverty, we need more than pitiful handouts to prevent a widespread health crisis, miserable children, and more deaths. The energy system should be turned on its head to ensure we pay less per unit if we use less energy – not more. Ofgem has loaded the costs of failing suppliers onto the standing charge – the part of the bill we  can’t escape no matter how much we cut down. The injustice of this charge must be urgently reversed, as a first step towards #EnergyForAll. Energy security begins at home.

William Baker from Solutions to Tackle Energy Poverty (STEP) commented:

We are facing a humanitarian crisis this winter unless the Government takes immediate action to ensure low income households can afford their fuel. It must also embark on an ambitious programme to reduce energy demand by insulating our homes; such a programme will reduce fuel poverty, improve energy security, reduce pressure on our health services and give a much needed boost to the economy.  

Tamara Sandoul from Chartered Institute of Environmental Health (CIEH) commented:

Another big rise in the cost of energy will have serious consequences for people’s health and wellbeing. Living in cold homes will hit the most vulnerable hardest – the elderly, those on low incomes, children and those with existing health conditions. The Government needs to act quickly to protect the most vulnerable in our society from the effects of this unprecedented rise in the cost of energy and the cost of living.

Jo Gilbert from CUBES (Customer Utility Bills Expertly Serviced) commented:

When thousands of death’s were predicted due to the Covid-19 pandemic the government stepped in and took measures to safeguard the vulnerable. We are now in a very real ‘Poverty Pandemic’ and thousands of people will freeze and die from cold related illness. The government must take immediate action, as they did with covid-19 to prevent this humanitarian crisis from emerging more than it already has.

Jacky Peacock, Head of Policy at Advice for Renters commented,

The 450,000 private renters who emerged from the pandemic with arrears of rent. now face unaffordable fuel bills.  Without decisive action now, we will see an explosion of evictions and homelessness with a cost to the public purse in excess of the measures to reduce fuel poverty being proposed by the End Fuel Poverty Coalition.

NOTES TO EDITORS

[1] Ofgem has suggested that the price rise will be an additional GBP829, taking the price cap to GBP2800 – an additional increase in bills of 42%.

[2] The rise in bills will result in an additional number of households in fuel poverty. According to Ofgem across the UK 12m households will be in fuel poverty this winter, 43% of the 28.1m households.

[3] Overall the End Fuel Poverty Coalition and National Energy Action estimate that based on a five year average, between 8,000 to 10,000 people across the United Kingdom die prematurely during the winter due to the impact of cold homes.  This is based on World Health Organisation modelling that at least 30% of Excess Winter Deaths are attributable to a cold home.

In 2019 there were 3.1m households in fuel poverty in England (official Government figures) and the average winter deaths mid-point would have been 9,000 (i.e. 0.3% of fuel poor homes are likely to have registered a “excess winter death”). If the numbers of fuel poor increase to the levels predicted, so could the numbers of people who die as a result of cold homes. If the figures of excess winter deaths remained proportionate to the levels of people in fuel poverty, this could see 22,500 excess winter deaths, pro rata. However, this assumption will need to be tested and checked against official figures in winter 2022/23 so is only for illustrative purposes.

[4] GBP20bn would be raised from Shell and BP alone, based solely on their 2020-21 profits. In the last quarter, their profits were even higher.

[5] GBP1800 based on the difference between the Ofgem prediction for winter 2022/23 and GBP1,000 cap which was more manageable for those in fuel poverty. This could be adjusted every year. Alternative measures have been suggested by other campaigners, such as the reversal of Universal Credit cuts or expansion of rebate schemes.

[6] “22 times” churn: https://www.oxfordenergy.org/wpcms/wp-content/uploads/2017/05/European-traded-gas-hubs-an-updated-analysis-on-liquidity-maturity-and-barriers-to-market-integration-OIES-Energy-Insight.pdf (table 4, p11). Experts predict this number may have fallen slightly since the table was compiled, but the principles of the market remain.

“31 suppliers”: https://www.forbes.com/uk/advisor/energy/failed-uk-energy-suppliers-update/

Is that it? – Reaction to Chancellor’s Spring Statement

End Fuel Poverty Coalition members have reacted with growing anger to the Chancellor’s Spring Statement.

A spokesperson for the Coalition commented:

As one MP in the chamber shouted, “is that it?”

The unexpected VAT cut on installing renewable or energy efficiency measures, the increase to Household Support Funds and the promised tax cuts, will no doubt help some people.

However, the fuel poverty crisis gripping this country will affect over 6.3m households from 1 April.

And for these people – including the 2.5m families with children in fuel poverty – there was very little in the Spring Statement.

End Fuel Poverty Coalition members have called for urgent help for households in fuel poverty now combined with a long-term plan to improve energy efficiency of our homes and investment in a sustainable, renewable-led, energy mix.

None of these things were delivered.

Sadly, the Chancellor has once again ignored those in fuel poverty – including the 14,000 homes in his own constituency. He must come back to Parliament at the earliest opportunity and set out how the Government will help those who will continue to suffer.

Commenting on today’s Spring Statement, Dan Paskins, Director of UK Impact at Save the Children, said:

 The chancellor is burying his head in the sand. In today’s statement he’s refused to face up to the reality of rising prices or to step in and shield the children hardest hit.

For families on low incomes this crisis has become unbearable. Parents we work with tell us that there’s nothing left to cut back. They’re being forced to skip meals, turn off the heating, and take on unsustainable amounts of debt. Children are going to school hungry because food budgets are stretched so thin.

The measures the chancellor has announced will benefit those on middle and higher incomes most and won’t come to close to closing the gap rising prices have left in family budgets. 

A 5p cut to fuel duty coupled with an increase to the national insurance threshold translates into an additional £18.40 per month for the poorest families, in the context of a real-terms income cut of £55 a month.

And while we welcome the continuation of the Household Support Fund, it’s designed for one-off unexpected costs, so this measure is grossly insufficient when families are facing soaring costs every day.

The government must do more. The best way to support the families who are struggling most is to increase social security payments to match the rate at which prices are increasing.

Dr Doug Parr, policy director at Greenpeace UK, said:

Right now millions of people are paying through the nose to heat homes which are so poorly insulated the warmth shoots right outside.

Cutting VAT on insulation, solar panels and heat pumps is a welcome start to ending that huge waste of energy, helping keep bills down and cut our gas use.

But if the chancellor’s serious about tackling the issue then it can only be the start. We need to see around £10bn of support, part raised by a windfall tax on oil and gas companies, for delivering the help families need to install the clean technologies that will get us off gas.

That should include finally fulfilling the full Conservatives manifesto pledge of £9.2bn towards energy efficiency, with more support grants available and greater backing to help the industry train up and deploy the tens of thousands of jobs this area offers.

National Energy Action experts tweeted:

Zero VAT on energy efficiency will make public money go further on schemes

More money for LAs to support households is good, but provision is inconsistent. Would have been better to increase existing energy schemes

Fuel duty cut will help many, but will help richer people most https://t.co/0TjUW5fSJC

— Matt Copeland (@Matt_Copeland1) March 23, 2022


Meanwhile, the Joseph Rowntree Foundation set out why the National Insurance Changes will not benefit those in fuel poverty:

Rise in NICs thresholds is very expensive for a small gain for low income working families and nothing for those with no-one in work.
The Chancellor has chosen to prioritise a tax break for middle and high income households over preventing a real terms cut to benefits

— Dave Innes (@dminnes) March 23, 2022

And the New Economics Foundation explained how the petrol price cut will not help low income households:

A 5p cut to fuel duty is worth less than £2/month for the poorest 10% of households #SpringStatement

— Alfie Stirling (@alfie_stirling) March 23, 2022


More reaction will follow.

Image: Shutterstock

Revealed: The streets where nearly everyone is in fuel poverty

Areas of the Midlands and Yorkshire have topped an unwelcome league table of fuel poverty.

New data projections from the End Fuel Poverty Coalition reveal that the fuel poverty crisis gripping the country is affecting some areas worse than others.

With the increase in energy bills coming into effect on 1 April 2022, over 6.3m households (27% of homes in England) will wake up in fuel poverty that morning.

In parts of the Bushbury South and Low Hill area of Wolverhampton, the situation is even more severe where 88% of households will be in fuel poverty from 1 April.

But Wolverhampton, which was recognised in the Government’s Levelling Up white paper, is not alone in seeing the vast majority of homes in fuel poverty.

The Washwood Heath area of Birmingham, the Castle & Priory ward of Dudley, the Shelton area of Stoke and the area near Smethwick Galton Bridge in Sandwell will also all see fuel poverty levels soar to over 80% of homes.

Just outside the 80% barrier, come parts of Smallbridge & Wardleworth in Rochdale, Bramley in Leeds, Richmond in Sheffield, Derwent in Derby and Nechells in Birmingham.

While these areas are among the highest levels of fuel poverty in the country, in terms of Parliamentary constituencies Birmingham Hodge Hill (55% of households in fuel poverty from 1 April 2022) tops the league table.

This is followed by Barking (48%), Stoke on Trent Central (47%), Wolverhampton South East (47%), Walthamstow (47%) and Birmingham Yardley (47%).

And in a blow to the Government’s levelling up agenda, “red wall” Tory MPs will be feeling the heat from constituents forced into fuel poverty by prices which were spiralling before the Russian invasion of Ukraine.

In Stoke Central, where Conservative MP Jo Gideon was elected, the number of homes in fuel poverty has doubled from 9,275 in 2019 to an estimated 18,463 in 2022.

Fellow Tories in Wolverhampton North East (Jane Stevenson MP), Walsall North (Eddie Hughes MP), Stoke on Trent North (Jonathan Gullis MP) and West Bromwich East (Nicola Richards MP) have also seen the numbers of constituents in fuel poverty rapidly increase since the 2019 election. [4]

Rachael Williamson, Head of Policy at Chartered Institute of Housing, said:

The Government’s ambition to ‘level up’ is being undermined by its inaction in meaningfully tackling fuel poverty. We need clear, long-term plans to tackle homes with poor energy efficiency, especially in the private sector, and financial support to address the gap in the meantime. Without this we will see many more households and families plunged into poverty. This was an issue before the invasion of Ukraine but is quickly becoming a real crisis.

Barking & Dagenham remains the local authority with the highest levels of fuel poverty after 1 April 2022 (44.7% of households) and while the West Midlands and Yorkshire continue to dominate the top ten, it is not just cities that suffer.

Around a third of households in market town Kings Lynn and rural West Norfolk will be in fuel poverty (33.8%), as will similar numbers in North East Lincolnshire (33.2%), Herefordshire (32.9%) and Shropshire (32.8%).

On the Chancellor’s home turf, 14,000 households in his constituency of Richmond (Yorks) will be in fuel poverty, with the numbers in wider Richmondshire also among the worst in rural England (32.3%).

Paul Dixon, Rural Evidence Manager at Action with Communities in Rural England, commented:

Rural residents have some of the hardest to heat homes. Additionally, about a million households rely on heating oil which has increased in price by more than three times since the same period last year. Government must recognise and address the particular vulnerabilities of people in this situation.

William Baker, of Solutions to Tackle Energy Poverty, said:

Local authorities will need to step up to tackle the tsunami of fuel poverty that will hit them over the next few months. We urge them to take coordinated action across local services, particularly through improving energy efficiency standards, providing income maximisation advice and protecting private rented sector tenants. And the Government must provide them with the resources to do this.

A spokesperson for the End Fuel Poverty Coalition, said:

Energy prices were rocketing before the Russian invasion of Ukraine as this data shows. Since 2019 households across the country have been feeling the squeeze as the implications of the  Government’s inaction on fuel poverty have been realised.

Charities and campaigners have been warning for years that fuel poverty is a social justice crisis, a public health emergency and a national security priority, but the Government took little action.

We need to see urgent help for households in fuel poverty now combined with a long-term plan to improve energy efficiency of our homes and investment in a sustainable, renewable-led, energy mix.

The Government has talked about this for long enough, but fails to match words with action – the Chancellor’s attempt to provide support for people through a “loans dressed up as grants” scheme is a prime example of this.

Ruth London from Fuel Poverty Action added:

Bad housing, profiteering on energy, and government foot dragging on the urgent switch to renewable energy have combined to create a disaster for millions of people.

The icing on the cake is that the pricing system discriminates – through high standing charges and through prepayment meters, poorer households in areas like these pay more per unit than households in better off regions. Just how much injustice and deprivation do they think people will put up with?

Jo Gilbert from Butterfly Energy said:

It’s no longer a question of heating or eating, sadly a large proportion of people can no longer afford to do either. The government needs to stop knee jerk responses and to take long term sustainable action, Rebates on council tax and £200 loans will not remedy this crisis.

Jess Ralston an analyst at the Energy & Climate Intelligence Unit, commented:

Energy efficiency reduces gas demand, shrinking our bills and weaning us further off gas from places like Russia. For the families in this report – many living in places that voted in the Conservatives in levelling up areas at the last election – better insulation is a lifeline against rocketing bills. For our energy system, it’s a shield against volatile fossil fuel supply and prices. If there was ever a time for energy efficiency, it’s now; insulation is the clear winner for lowering bills and improving energy security in the short term.

Ramping up existing schemes that deliver efficiency, like the Energy Company Obligation, is one way to level up homes while levelling down bills. Other policies to get our housing on track for net zero like the boiler upgrade scheme, that gives grants to swap out gas boilers for cleaner alternatives that could be hundreds of pounds cheaper to run this year, could help to isolate British families from the impacts of surging fossil fuels. It really is a no brainer.

For more on the methodology used in this news story, read more here.

Image: Shutterstock

Charities unite in call for funding to tackle energy bill crisis

An alliance of 27 major charities have today written to the Prime Minister and Chancellor, calling for urgent action to tackle the energy bill crisis, including boosting insulation funding.

The charities, which include Save the Children, Age UK, WWF, Green Alliance, Faith for the Climate, Tearfund and Greenpeace, are calling for emergency funding to support the most vulnerable and for insulation and clean energy funding to be increased to help wean the UK off expensive gas.

Without urgent government action the energy price cap could be increased by £600 in April, driven by the surging price of gas on the international markets, taking an average energy bill to around £2000.

The charities estimate that fuel poverty could increase by 50%, from 4 to 6 million households across the UK. There are fears this will lead to households choosing between heating and eating, an increase in the number of people dying in cold homes and a greater burden on the NHS, when it is already under great strain.

The charities remind the Prime Minister that a cut in support for making homes energy efficient after the last surge in energy bills in 2013 left households far more vulnerable to surging gas prices.

As a result of the Energy Company Obligation levy being cut in half and the Warm Front programme for the fuel poor being abolished, millions of British homes have not been insulated.  The cuts led to a 90% cut in loft and cavity wall insulation measures and half of those in the insulation industry lost their jobs. The charities warn that insulation rates have still not recovered and the same mistake must not be made today.

Juliet Phillips of the climate change think tank E3G said:

The Energy Company Obligation is the biggest programme the government has to insulate the homes of the fuel poor. Any damage to this levy would make these households more dependent upon gas, entrenching the crisis further.

Improving the efficiency of the worst performing UK homes could provide bill savings of over £500 every year per household upgraded, an aggregate saving of around £8bn

Investing in UK green energy and technologies like heat pumps would also help end the UK’s reliance on fossil gas. Renewables have helped to keep electricity prices from soaring as much as gas prices, as cheaper wind and solar cushion the increased expense of using gas to generate electricity.

The charities are also calling for emergency support for the most vulnerable, funded in part by a windfall tax on the fossil fuel industry, who are due to make profits up to ten times higher this financial year due to the surge in wholesale prices.

They are recommending expanding the Warm Homes Discount to ensure the majority of the expected rise in energy bills is covered for the most vulnerable households, for example those on universal credit and providing a one-off payment to those eligible for Cold Weather Payments.

The charities are also joining calls for legacy costs for renewables to be moved off power bills, to be paid for by the Exchequer instead, whilst leaving the Energy Company Obligation on the energy bill as a critical levy to help the fuel poor. They calculate that this would save households an additional £100 a year.

The charities also want the Government to fulfil its manifesto commitment to spend £6 billion on making homes more energy efficient. There is a £2 billion black hole in the funding committed after the Spending Review which they say must be filled, most of which was meant to go to the fuel poor.

Two thirds of households having no access in the UK to any insulation grant scheme. The charities want a new insulation grant programme set up to replace the failed Green Homes Grant which anyone can access.

The charities also call on the Government to ramp up the heat pump grant programme due to launch in April with ten times more funding, boosting it from £400m to a £4 billion programme, to accelerate the transition away from fossil fuel boilers.

William Baker of Solutions to Tackle Energy Poverty said:

The Energy Company Obligation is central to the Government’s legal duty to abolish fuel poverty by 2030. Scrapping the programme would show the Government does not take its statutory responsibilities seriously. It would condemn many fuel poor households to unaffordable fuel bills, ill health and in the worst cases death as a result of living in dangerously cold, unhealthy homes. The government must take urgent action to address the current crisis of rocketing fuel bills and expand its programmes to upgrade the insulation and heating systems of our notoriously leaky homes so that we are less dependent on volatile gas markets.

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

The cost of living crisis, fuelled by soaring energy prices, is totally unsustainable and is hitting the lowest income families the hardest. Parents we work with tell 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. Children deserve a fair and green future, and need a concrete plan from the UK Government that tackles both the cost-of-living and climate crises.

Dr Doug Parr, Policy Director at Greenpeace UK said:

The twin imperatives of a gas price crisis and the climate crisis mean we need to get off fossil fuels as fast as we can whilst protecting people on low incomes. That means we need to see short-term support for fuel poor families and long term support for energy efficiency and cheap renewables. A windfall tax on oil and gas companies would be a fair way to help finance the transition as we exit fossil fuel production in line with advice from leading experts at the International Energy Agency.

A spokesperson for the End Fuel Poverty Coalition, which was also a signatory to the letter, commented:

After years of tireless campaigning by health, anti-poverty and environmental charities, trade unions and researchers, politicians are finally waking up to the tragedy of fuel poverty in the country.

Fuel poverty is a public health and social crisis but can only be solved by economic measures and the Government must do everything possible to help people in crisis now while investing in energy efficiency programmes to fix the long-term problems.

The full letter is available to read online.