Tag: Energy Bills

Speculation continues over new measures to tackle fuel poverty

Senior figures in the Conservative Party came under increasing scrutiny this week as consistent media headlines accused them of failing to act.

After last week’s headlines about the Ofgem price cap changes, Cornwall Insight provided the latest estimates on the likely price cap.

This revealed that the average energy bill in October will rise to £3,542 (£3,182 including the Government’s planned household support” and then to £4,266 from January.

The End Fuel Poverty Coalition predicts that this will result in 9.2m households being in fuel poverty in October, with the number growing to 10.5m in early 2023.

As the Coalition told CNN:

Only a full programme of emergency financial support, a rapid expansion of energy efficiency programmes and a commitment to bringing more cheap renewable energy on stream will help people stay warm this winter and into the future.

During the week, the leadership contenders felt the pressure as fuel poverty campaigners with Warm This Winter targeted the Darlington hustings to press home the message that more needed to be done.

Rishi Sunak responded with plans for more support for households, but also an expansion in the country’s reliance on fossil fuels.

Meanwhile Liz Truss continued to avoid directly promising support. This lead to her local paper, the Eastern Daily Press to run a large feature highlighting the devastating impact her policies will have on her own constituency.

After accusations that he was presiding over a Zombie Government, the acting Prime Minister also attended a meeting with energy firms. Afterwards, the Treasury admitted to the Guardian that support would not be enough.

As the week drew to a close, figures showing a slight decline in GDP also posed a challenge to leaders, with Jennifer Wallace from Carnegie UK (which proposes a wellbeing approach to measuring a nation‘s success) commenting:

These figures take into account a dramatic increase in the cost of living, in part due to the rising costs of home energy bills.

While this has helped prop up the GDP figures somewhat, it is hugely damaging for the UK’s collective wellbeing due to rising anxiety for people who are worried about being unable to heat their homes this winter.

As an article in the Sunday Times revealed that people will not be able to afford vital care, the Government is also now rumoured to be planning for additional help. However, the Coalition commented:

The toll on the mental health of people struggling to pay their energy bills or plan ahead should not be under-estimated.

We are already seeing disabled people unable to charge their medical equipment because they can’t afford to use electricity.

If the Government is unwilling to help everyone this winter, it should at least support the most vulnerable.

The Lib Dems and Labour revealed some of their suggestions for helping offset the energy bills rise.

Labour has pledged to act on the unfair pre-payment meter tariffs in the first of a proposed series of announcements, while the Lib Dems called for universal support to be extended to cancel out the October price rise.

 

Details of Energy Bills Support Scheme announced

Millions of households across Great Britain will receive non-repayable discounts on their energy bills this winter, as the UK Government today has set out further details of the Energy Bills Support Scheme (EBSS).

The £400 discount, administered by energy suppliers, will be paid to consumers over six months with payments starting from October 2022, to ensure households receive financial support throughout the winter months.

The Government has stressed that in all cases, no household should be asked for bank details at any point. Ministers are urging consumers to stay alert of potential scams and report these to the relevant authorities where they are suspected.

A spokesperson for the End Fuel Poverty Coalition commented:

The details of the Energy Bills Support Scheme are broadly welcome.
The officials involved in the development of the scheme have done a good job in listening to the concerns of End Fuel Poverty Coalition members and have taken steps to ensure that every household will be able to benefit.
While there are a few outstanding concerns, we are pleased that BEIS has agreed to work with our members to address these.
The bigger issue, however, is that the level of support available will not be enough to offset the rises in energy bills expected in October and Ministers will need to instruct officials to expand the funding for the scheme.

The Government has issued detailed information for people on how the scheme will work, based on the current proposed £400 discount:

  • The £400 discount will be administered by suppliers and paid to consumers over six months with payments starting from October 2022, to ensure households receive financial support over the winter months.
  • Households will see a discount of £66 applied to their energy bills in October and November, rising to £67 each month from December through to March 2023.
  • The discount will be provided on a monthly basis regardless of whether consumers pay monthly, quarterly or have an associated payment card.
  • Households will never be asked for their bank details, and those with a domestic electricity connection will not need to apply.
  • There is no need to contact your supplier as all domestic electricity customers will be automatically eligible. Electricity bill payers should enquire with their supplier if they have not received their first instalment by the end of October.

Breakdown of the delivery process for each payment method:

  • Direct Debit customers will receive the discount automatically as a reduction to the monthly Direct Debit amount collected, or as a refund to the customer’s bank account following Direct Debit collection during each month of delivery.
  • Standard credit customers and payment card customers will see the discount automatically applied as a credit to standard credit customers’ accounts in the first week of each month of delivery, with the credit appearing as it would if the customer had made a payment.
  • Smart prepayment meter customers will see the discount credited directly to their smart prepayment meters in the first week of each month of delivery.
  • Traditional prepayment meter customers will be provided with redeemable vouchers or Special Action Messages (SAMs) in the first week of each month, issued via SMS text, email or post. Customers will need to take action to redeem these at their usual top-up point.
  • Landlords who have a domestic electricity contract with a licensed electricity supplier and then resell the electricity to their tenants based on energy usage must comply with the maximum resale price rules. The maximum resale price for electricity is currently set as the same price as that paid by the person reselling it. Under these circumstances, the Government expects landlords to pass on the discount received to each tenant.
  • Landlords with a domestic electricity connection who charge ‘all inclusive’ rent, often the case for many student houses, where a fixed cost for energy costs are included in their rental charges, must pass on the discounted payments to tenants.
  • Approximately one per cent of UK households are currently ineligible to receive Energy Bills discount as they do not have a domestic electricity meter and a direct relationship with an electricity supplier. The government has confirmed that further funding will be available to provide equivalent support of £400 for energy bills for the 1% of households who will not be reached through the Energy Bills discount. An announcement with details on how and when these households across Great Britain can access this support will be made this Autumn.

The Energy Bills Support Scheme forms part of the Government’s £37 million Cost of Living Support package, providing Help for Households with rising prices, targeted at those most in need.

Leading charities urge PM-hopefuls to end fuel poverty

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

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

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

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

A spokesperson for the End Fuel Poverty Coalition commented:

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

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

Full letter to candidates

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

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

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

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

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

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

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

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

Full list of signatories:

  1. End Fuel Poverty Coalition
  2. The Climate Coalition
  3. CPRE The countryside charity 
  4. Wildlife & Countryside Link
  5. Save the Children
  6. WWF UK
  7. The Wildlife Trusts
  8. Oxfam
  9. Fuel Poverty Action
  10. Fair Energy Campaign
  11. Robin Hood Tax
  12. The Centre for Sustainable Energy
  13. Energy Action Scotland
  14. Chartered Institute of Environmental Health
  15. Possible
  16. Ashden
  17. Austerity Action Group part of Social Workers Union
  18. New Economics Foundation
  19. Uplift
  20. Camden Federation of Private Tenants
  21. Regen
  22. Northern Housing Consortium
  23. Groundwork
  24. Advice for Renters
  25. Fairer Housing
  26. Friends of the Earth Scotland
  27. MCS Charitable Foundation
  28. Fairness Foundation
  29. Tax Justice UK
  30. Women’s Budget Group
  31. The Economic Change Unit 
  32. Wellbeing Economy Alliance Scotland
  33. IPPR
  34. Chartered Institute of Housing
  35. The Centre for Ageing Better
  36. The Working Class Economists Group
  37. Greenpeace UK 
  38. Friends of the Earth England, Wales and Northern Ireland
  39. 38 Degrees
  40. Action with Communities in Rural England

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Government urged to address ten failures in energy bills plans

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

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

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

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

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

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

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

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

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

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

A spokesperson for the End Fuel Poverty Coalition, commented:

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

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

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

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

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

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

Ruth London from Fuel Poverty Action commented:

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

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

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

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

Laura Santamaria, Chair for Fair Energy Campaign, added:

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

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

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

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

Georgia Whitaker, Oil Campaigner at Greenpeace UK, added:

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

A spokesperson for the Chartered Institute of Housing added:

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

ENDS

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

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

Two important principles have now been established:

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

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

There are ten key areas we need clarification on:

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

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

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

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

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

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

Coalition responds to Chancellor’s cost of living crisis statement

End Fuel Poverty Coalition members have been responding to today’s announcement by the Government that additional support will be made available following reports of record energy price rises.

A spokesperson for End Fuel Poverty Coalition, commented:

“The Government has agreed in principle that a Windfall Tax is vital and the Chancellor has clearly listened to concerns that support for those in fuel poverty needs to be both widespread, but also focussed on the most vulnerable groups.

“But by October, energy bills will have increased by over £1,500 in a year. So while the measures announced today will take the sting out the tail of recent increases, the underlying problem of millions of households in fuel poverty remains.

“People in fuel poverty will need further reassurance that support will be there in the medium-term and we need full investment in a Great Homes Upgrade to improve the energy efficiency of homes as a national priority.”

Ami McCarthy, political campaigner for Greenpeace UK, said:

“This windfall tax will serve only as a sticking plaster. While providing support to millions struggling with sky-high energy bills is 100% the right thing to do, by only skimming the top 25% off oil and gas company profits Sunak has missed a huge opportunity to tackle the root cause of the cost of living crisis and the climate crisis together.

“Taxing the full profits at 70% would have more than doubled the cash available. This could have been used to provide short-term relief to households, as well as upgrades to homes to ensure they use and waste less energy, and keep bills low for years to come.

“Instead of driving money into clean energy solutions, Sunak has used this announcement to encourage oil and gas company investments. Yet the current cost-of-living crisis is mostly a result of gas price rises – hard-up families shouldn’t have to wait for the Prime Minister and Chancellor to deliver cheaper and cleaner energy to help with their bills.”

National Energy Action commented:

“By October the average energy bill was predicted to more than double from last year. This vast increase would have pushed millions of households into destitution, turning to desperate measures to stay warm at home. Without additional support, we were facing an utterly disastrous winter. The Chancellor’s new package today averts the darkest of outcomes, offering some hope to the millions of fuel poor households across the UK.

“Millions will still be struggling and the energy crisis is far from over, but a large, more targeted intervention is what was needed ahead of winter.

“The Government urgently needs to plan for energy prices to remain high for the longer term. This must include a social tariff, setting an affordable price of energy for the poorest households. And there must be additional effort into making the homes of fuel poor households more energy efficient, making them more resilient to the sort of price shock that they are currently shouldering.”

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

“The Chancellor has importantly acknowledged that life costs more if you are disabled.

“This package is a significant short-term boost to disabled people whose backs are against the wall.

“But inflation and energy prices are still running riot, and disabled people are much more likely to live in poverty.

“Even before the cost of living crisis, disabled people were facing extra costs of almost £600 a month. Many struggling with sky-high bills from needing more energy to charge vital equipment, or extra heating to stay warm.

“Our Disability Energy Support Service has been inundated by disabled people in crisis and nowhere else to turn.

“The Chancellor needs to continue to use the benefit system in the long term to target support at disabled people where it’s needed most. The Government must also make sure that no disabled people fall through the gaps in receiving the support needed to get through this winter and beyond.”

Caroline Abrahams, Charity Director at Age UK, said:

“Age UK is pleased and relieved that the Government has recognised the extreme risks soaring inflation pose to the health and welfare of pensioners, particularly those on low incomes, and has announced a package of measures today with the aim of mitigating them. With prices continuing to go up for everything they buy, life is certainly not going to be easy for many older people over the next few months, but the extra support the Chancellor is bringing forward will make a difference and will protect most from the worst of the unprecedented surge in the cost of living they face.

“Targeting most of the support on offer to pensioners who receive means-tested benefits, that is Pension Credit, was undoubtedly the right thing to do, but as a result it is more important than ever that every older person who qualifies receives their due. We know that some three quarters of a million are missing out at the moment, so we urge anyone who thinks they may be eligible to put in a claim without delay.  If they act quickly, it is possible they may be eligible for some of the additional financial help that is now available, and this could be life-changing for them.

“No one knows what will happen to prices later in the year and it may well be that the Government will need to go further and do more in the autumn Budget, if inflation goes on ratcheting up. At Age UK we will be tracking the experiences of older people, especially those on low incomes, as the months go by.  We will also continue to campaign with others for more investment in energy efficiency and for the reintroduction of a social energy tariff since, in the longer term, these would help pensioners to keep on top of their energy bills and support progress towards our zero carbon targets.

“It is absolutely crucial for older people that the triple lock kicks in again next year, so it was important that the Chancellor restated his commitment to this during his speech. Age UK will hold him to his word.”

Ed Matthew from E3G commented:

“The increased support for households this winter is welcome but the Chancellor has failed to fix the underlying crisis. The UK has the worst insulated homes in western Europe. He could halve household energy demand through efficiency measures alone, but it won’t happen unless he provides the financial support needed. The windfall tax should have been used in part to do that. It’s a missed opportunity and keeps citizens reliant on gas. We will all pay the price for this missed opportunity.”

Ruth London from Fuel Poverty Action commented:

“Champagne corks will be popping in the  boardrooms of North Sea oil and gas extractors. While in millions of homes, people on low incomes may risk the expense of turning on the kettle and splurging on a cup of tea.

“In the boardrooms they won’t fail to notice that the dreaded, long-delayed windfall tax will remove only £5bn of their £13bn windfall profits.  And even at its temporary peak, UK tax will be lower than the 70% norm for other countries.

“Continuing the UK’s strong record of give-aways to fossil fuel polluters, these giant corporations will get 90p back in tax relief for every pound they invest.  And that investment must go into oil and gas – four times more expensive than wind and solar energy, and costing us all even more than that, through pollution of the air, the sea and the climate.  Rishi Sunak says he doesn’t want to “burden future generations”.  But subsidising fossil fuels may mean they have no future at all.

“Back in the kitchen, some of the sums in the Chancellor’s ‘support’ package will provide much needed relief. But it is hard to feel grateful.  Even the maximum support he has offered to the poorest will not make up the increase in fuel bills this year, let alone the rising cost of food and rents. The missing £8 billion from windfall profits could have done so much to relieve the pain of a decade of cuts, rising prices, overwork, and cold, uninsulated homes!”

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/

Coalition condemns utterly devastating price rises

A spokesperson for the End Fuel Poverty Coalition, has commented on Ofgem’s estimates that the price cap will increase to £2,800 from 1 October 2022 and predictions that 12m households could be in fuel poverty across the UK this winter.

This news will be utterly devastating for millions of homes currently in fuel poverty – and for millions more households who will now spend this winter struggling to keep themselves warm.

Fuel poverty becomes a public health emergency in winter and the hidden cost of the UK Government’s continued inaction will be felt in a collapse in the mental health of those in fuel poverty, increased pressure on the NHS from those with health conditions affected by damp properties and excess winter deaths caused by cold homes.

Unless the Government acts now, it will have blood on its hands this winter.

The Government must urgently impose a windfall tax on energy production firms to help those most in need, invest in a Great Homes Upgrade to improve energy efficiency of buildings and deliver a renewable-led secure energy infrastructure.

James Taylor, Executive Director of Strategy at disability equality charity Scope which are members of the Coalition, said:

The impact of the price cap rising by £1,500 in a year will be horrific. Many disabled people are already forced to commit a large amount of their income to energy costs.

Disabled people often rely on energy intensive equipment like electric wheelchairs, electric hoists, or monitors.

We’ve heard from disabled people who must choose between charging vital equipment and heating their home. Others are going without food so that their children can eat.

Our Disability Energy Support service has been inundated by disabled people in crisis with nowhere else to turn.

Disabled people cannot wait any longer for Government intervention. We need to see benefits rise in line with inflation, disabled people included in any expansion of the Warm Home Discount and a further increase in funding to the Household Support Fund.

In comments on Twitter, National Energy Action also described the proposed increases as catastrophic.

Constituencies with highest levels of fuel poverty revealed

The constituencies with the highest levels of fuel poverty have been revealed in a new league table from the End Fuel Poverty Coalition published today.

Over 6.3m homes will be in fuel poverty from tomorrow morning (1 April 2022), following the Chancellor’s Spring Statement, which did little to help end the misery of fuel poverty.

The Coalition has launched a campaign to help people in fuel poverty easily contact their MP on Twitter. Simply tweet your MP today using this easy link: https://tymp.uk/3DckC0m. A petition by National Energy Action has also been launched.

The 10% of constituencies most affected by fuel poverty are mainly urban areas represented by Labour MPs.

But in Stoke-on-Trent Central, Wolverhampton North East, Walsall North, Stoke-on-Trent North, West Bromwich East, West Bromwich West, Stoke-on-Trent South, Birmingham Northfied, Newcastle-under-Lyme, Dudley North and Great Grimbsy, Tory MPs represent over 178,000 households which will be in fuel poverty.

An End Fuel Poverty spokesperson commented:

Constituents will rightly be asking what MPs are doing to help end fuel poverty and the energy bills crisis gripping the country.

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.

Sadly, none of these things were delivered in the recent Spring Statement and the Chancellor has once again ignored those in fuel poverty – including the 14,000 homes in his own constituency.

MPs must demand Rishi Sunak comes back to Parliament at the earliest opportunity and sets out how the Government will help those who will continue to suffer.

Meanwhile, the Energy Saving Trust has provided advice on how households can reduce energy bills.

The organisation suggests that making several small and swift changes, such as turning devices off standby and reducing daily water usage, could enable many people to offset the increase in costs by around a third.

While more support for those in fuel poverty will be needed, for those that are able – or able to access financial support to future-proof their homes – investing in energy efficiency can yield results.

Professional draught-proofing and insulation in preparation for the winter months could lead to a reduction in bills by £405 a year for a semi-detached home. Installing solar panels for a similar property could lead to additional annual savings of around £450 a year.

The full league table of constituencies by fuel poverty is below:

Fuel Poverty by Parliamentary Constituency, 2019 (Official BEIS figures) Fuel Poverty by Parliamentary Constituency, from 1 April 2022 (End Fuel Poverty Coalition estimates)
Parliamentary Constituency Number of households in fuel poverty (2019) Proportion of households fuel poor (%, 2019) Number of households in fuel poverty (from 1 April 2022) Proportion of households fuel poor (% from 1 April 2022) MP Name MP Surname MP Party
Birmingham Hodge Hill                  11,575                      27.4            23,041 54.5% Liam Byrne Labour
Barking                  11,580                      24.0            23,051 47.7% Margaret Hodge Labour
Stoke-on-Trent Central                    9,275                      23.7            18,463 47.3% Jo Gideon Conservative
Wolverhampton South East                    8,956                      23.7            17,828 47.1% Pat McFadden Labour
Walthamstow                  10,479                      23.7            20,859 47.1% Stella Creasy Labour/Co-operative
Birmingham Yardley                  10,405                      23.5            20,712 46.7% Jess Phillips Labour
Sheffield Brightside and Hillsborough                  10,778                      23.2            21,454 46.2% Gill Furniss Labour
Warley                    8,775                      23.2            17,467 46.2% John Spellar Labour
Birmingham Ladywood                  11,770                      23.1            23,429 46.0% Shabana Mahmood Labour
Manchester Gorton                    9,680                      22.8            19,269 45.5% Afzal Khan Labour
Birmingham Erdington                  10,006                      22.8            19,918 45.5% Paulette Hamilton Labour
Birmingham Perry Barr                    9,248                      22.8            18,409 45.3% Khalid Mahmood Labour
Birmingham Hall Green                    9,550                      22.7            19,010 45.2% Tahir Ali Labour
Bradford West                    8,829                      22.4            17,575 44.6% Naseem Shah Labour
East Ham                  10,819                      22.0            21,536 43.7% Stephen Timms Labour
Bradford East                    9,406                      21.9            18,723 43.7% Imran Hussain Labour
Tottenham                  11,347                      21.8            22,587 43.4% David Lammy Labour
Wolverhampton North East                    8,531                      21.8            16,982 43.4% Jane Stevenson Conservative
Walsall South                    8,688                      21.8            17,294 43.3% Valerie Vaz Labour
Walsall North                    8,852                      21.7            17,621 43.2% Eddie Hughes Conservative
Leeds East                    9,064                      21.6            18,043 43.0% Richard Burgon Labour
West Ham                  12,750                      21.5            25,380 42.8% Lyn Brown Labour
Kingston upon Hull North                    8,932                      21.3            17,780 42.4% Diana R. Johnson Labour
Stoke-on-Trent North                    9,346                      21.1            18,604 41.9% Jonathan Gullis Conservative
Birmingham Selly Oak                    9,210                      20.9            18,333 41.6% Steve McCabe Labour
Leeds Central                  12,738                      20.9            25,356 41.6% Hilary Benn Labour
Edmonton                    9,171                      20.7            18,255 41.3% Kate Osamor Labour/Co-operative
Sheffield Central                    9,838                      20.5            19,583 40.8% Paul Blomfield Labour
Coventry North East                    9,653                      20.4            19,215 40.7% Colleen Fletcher Labour
Croydon North                  11,643                      20.4            23,176 40.7% Steve Reed Labour/Co-operative
West Bromwich East                    7,569                      20.3            15,067 40.5% Nicola Richards Conservative
Leyton and Wanstead                    8,465                      20.3            16,850 40.3% John Cryer Labour
Nottingham East                    9,094                      20.1            18,102 40.1% Nadia Whittome Labour
Rotherham                    7,976                      20.0            15,877 39.9% Sarah Champion Labour
West Bromwich West                    7,623                      20.0            15,174 39.8% Shaun Bailey Conservative
Nottingham North                    8,892                      19.9            17,700 39.6% Alex Norris Labour/Co-operative
Stoke-on-Trent South                    8,090                      19.7            16,104 39.3% Jack Brereton Conservative
Barnsley East                    8,158                      19.7            16,239 39.1% Stephanie Peacock Labour
Manchester Withington                    8,458                      19.6            16,836 39.1% Jeff Smith Labour
Doncaster North                    8,647                      19.6            17,212 39.1% Ed Miliband Labour
Leicester West                    8,667                      19.5            17,252 38.8% Liz Kendall Labour
Liverpool Walton                    8,403                      19.4            16,727 38.6% Dan Carden Labour
Brent Central                  10,324                      19.4            20,551 38.5% Dawn Butler Labour
Blackley and Broughton                    9,219                      19.2            18,351 38.3% Graham Stringer Labour
Birmingham Northfield                    8,805                      19.1            17,527 38.0% Gary Sambrook Conservative
Lewisham East                    8,633                      19.0            17,185 37.9% Janet Daby Labour
Liverpool Wavertree                    8,035                      19.0            15,994 37.7% Paula Barker Labour
Bradford South                    8,227                      19.0            16,376 37.7% Judith Cummins Labour
Middlesbrough                    7,664                      18.9            15,256 37.6% Andy McDonald Labour
Newcastle-under-Lyme                    7,619                      18.9            15,166 37.5% Aaron Bell Conservative
Leeds West                    8,266                      18.8            16,454 37.5% Rachel Reeves Labour
Birmingham Edgbaston                    7,995                      18.8            15,915 37.4% Preet Kaur Gill Labour/Co-operative
Dudley North                    6,661                      18.8            13,259 37.4% Marco Longhi Conservative
Leicester South                    8,792                      18.8            17,501 37.4% Jon Ashworth Labour
Leicester East                    7,659                      18.6            15,246 37.1% Claudia Webbe Independent
Liverpool Riverside                  10,201                      18.5            20,306 36.9% Kim Johnson Labour
Kingston upon Hull East                    7,898                      18.5            15,722 36.9% Karl Turner Labour
Huddersfield                    7,954                      18.5            15,833 36.8% Barry Sheerman Labour/Co-operative
Newcastle upon Tyne East                    7,693                      18.5            15,313 36.7% Nick Brown Labour
Coventry South                    8,221                      18.4            16,364 36.7% Zarah Sultana Labour
Barnsley Central                    7,384                      18.3            14,698 36.5% Dan Jarvis Labour
Great Grimsby                    7,523                      18.3            14,975 36.4% Lia Nici Conservative
Mitcham and Morden                    7,580                      18.2            15,089 36.2% Siobhain McDonagh Labour

Methodology.

Image: Shutterstock

Children set to suffer as energy bills rocket

Sky News has exclusively revealed  new End Fuel Poverty Coalition calculations that show the impact of the energy bills crisis on households with children.

Figures predict that recent rises in energy bills will take the number of households with children in fuel poverty to over 2.5m from 1 April 2022.

The figure exceeds previous calculations and represents the number of children in fuel poverty doubling since 2019.

As a percentage of all households with children, this will rise from 19.4% in fuel poverty in 2019 to an estimated 38.6% after the next Ofgem Price Cap increase which comes in on 1 April 2022.

The End Fuel Poverty Coalition predicts that over half (55.7%) of lone-parent households (855,938) will be in fuel poverty from 1 April 2022. The figure is 33.4% for couples with dependent children (1.69m).

A spokesperson for the End Fuel Poverty Coalition told Sky News, which first reported on the figures:

The stark reality of life under the Government’s energy bill crisis is clear to see. Among the worst affected will be the most vulnerable, including children.

Expert studies show that living in fuel poverty can have a detrimental impact on children’s health, well-being and even their ability to learn.

The measures already announced by the Government hardly scratch the surface of the support needed.

We need to see a full package of measures to help those in fuel poverty now alongside urgent work to improve the energy efficiency of buildings and move the country to a secure, sustainable, non-fossil fuel based energy supply.

A Public Health England report found that cold homes and poor housing conditions have been linked with a range of health problems in children. And a Childhood Trust report found that fuel poverty can also have a number of indirect impacts, such as lower rates of educational attainment in school, and a strain upon young people’s mental health.

Recently, the British Medical Journal reported:

Children growing up in cold, damp, and mouldy homes with inadequate ventilation have higher than average rates of respiratory infections and asthma, chronic ill health, and disability. They are also more likely to experience depression, anxiety, and slower physical growth and cognitive development.

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

It is deeply worrying that the number of families in fuel poverty is set to double this spring. These figures show that this year, a child in a single parent family is more likely to experience fuel poverty than not. That simply can’t be right and the UK government must do more to protect families.

We’re already seeing families having to make impossible choices between heating their homes and feeding their children, and parents we work with say they just don’t know what they’re going to cut back on next. A further increase in energy bills will leave even more children living in cold and damp homes, going to bed hungry, and missing out on the opportunities they need to grow and thrive.

The best way of supporting families through this crisis is by making sure benefits keep up with rising costs – but right now, they’re on track for a real terms cut. The UK government must act to support families and make sure benefits increase in line with inflation.

Image: Shutterstock

Global demand to end fossil fuel addiction feeding Putin’s war machine

The End Fuel Poverty Coalition has joined hundreds of organisations from dozens of countries in expressing solidarity with the Ukrainian people in a collective call on world governments to end fossil fuel production.

The current crisis sees Putin weaponising oil and gas money to threaten livelihoods and fuel terror with escalating violence, underscoring the fossil fuel system’s role in driving conflict.

This war is a fight for Ukrainians’ own freedom, but more broadly, a fight for self-determination worldwide.

The letter — initiated by a dozen Ukrainian climate organisations — recognises that this war is a “grave violation of human rights, international law and global peace” fuelled by the oil and gas money that powers Putin’s war machine.

40% of Russia’s federal budget comes from oil and gas, which also make up 60% of Russia’s exports.

The letter urges governments to use all nonviolent means necessary to stop Putin and his war machine, restore peace, and end this egregious murderous aggression.

Governments must work together to manage transition to a clean and safe renewable energy in a way that is fast and fair.

This also means stopping all trade and ending investment in Gazprom, Rosneft, Transneft, Surgutneftegas, LukOil, Russian Coal and others, seeing a cease to all financial services for Russian energy companies operating in the coal, oil and gas sectors.

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

The invasion of Ukraine is an obscene act of terror by the Russian state.

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

And the solution to fuel poverty does not lie in fossil fuels.

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

While any further rises to already sky high energy bills are a huge concern to the millions of people facing fuel poverty, any attempts to push all the responsibility for the energy bills crisis onto the Russian invasion does not give the whole picture.

Any pain which is suffered by the British public as a result of increased energy prices is a political decision by the UK Government.

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.