Tag: Fuel Poverty

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

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

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

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

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

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

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

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

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

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

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

Caroline Abrahams, Charity Director at Age UK, said:

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

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

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

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

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

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

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

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

Astronomical energy bills are pushing disabled people to the brink.

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

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

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

Protest calls for end to excess winter deaths caused by cold homes

Protestors are to stage a vigil in Westminster over the number of people dying from living in cold damp homes.

Members of the National Pensioners’ Convention, Fuel Poverty Action, Disabled People Against Cuts (DPAC) and others will hold a minute’s silence in memory of those who have died as Big Ben chimes 12pm on Thursday, 19th January 2023.

The protest is being staged on the day the latest ‘excess winter deaths’ figures for England and Wales are due to be announced by the Office of National Statistics (ONS). The figures will cover the period from December 2021 to February 2022, prior to the huge surges in costs of energy bills and number of homes in fuel poverty.

The demonstration follows on from a day of action on fuel poverty co-ordinated by the Warm This Winter campaign which saw events take place up and down the country in December 2022. Further “Warm Up” protests are being organised for Saturday 21st January by Fuel Poverty Action.

The event will start at 11.30am on the 19th January 2023 at the George V Statue, Westminster SW1P 3JY.  Speakers will address the demonstration, leading up to the one minute silence.

Pall bearers dressed in black will then slow march with a coffin bearing the latest excess deaths figure to Downing Street to hand in a letter to Prime Minister Rishi Sunak calling for immediate action to end this annual scandal.

NPC General Secretary Jan Shortt said:

It is shameful that anyone should die from cold related illness in this country. But we fear that the rocketing cost of living, rampant energy prices, and the disastrous crisis in the NHS and social care will see tens of thousands more die in this way.  It’s time the government took action to end this horrific annual cull of our oldest and most vulnerable.

Alex Considine who is planning on attending the protest said:

As a single mum with two grown up children, still living at home but with decent incomes, we are all still struggling to survive in this energy driven cost of living crisis.

Even after cutting back, cutting down and reducing our outgoings we are still sitting in the dark at times and not putting the heating on.

And we are the lucky ones.

My neighbours and friends  are in dire straits and constantly asking for my help and advice.  Our homes are cold and damp and our children are getting sicker and sicker with no end in sight. How do we go on?

The protest will also put further pressure on the Government to Ban Forced Pre-Payment Meters after more politicians spoke out about the scandal. Ruth London from Fuel Poverty Action added:

Forcing people onto pre-payment meters is turning energy debt into a death sentence for many.  Suppliers are doing this in defiance of their licence conditions, while Ofgem, the courts, and the government are colluding.

Many people rely on energy to power stair lifts, wheelchairs, hearing and respiratory aids as well as the heat, light, refrigeration and connectivity that we all depend on.

A spokesperson for the End Fuel Poverty Coalition commented:

The energy bills crisis has its roots in Westminster and the Government’s failure over decades to help us insulate our homes and secure a renewable-led energy grid.

The cost of this failure is now being felt by the elderly, disabled, those with health conditions and young families. Even in mild winters, we see huge levels of excess winter deaths caused by living in cold damp homes which put our country to shame.

We need urgent additional financial support for the most vulnerable this winter and next and a significant ramping up of insulation and energy efficiency schemes.

3.2m pre-payment meter customers left without heat

New research has found that one person every 10 seconds ran out of credit on their pre-payment meter last year because they couldn’t afford to top up.

The findings put more pressure on the Government to act on the pre-payment meters scandal as a total of 3.2 million people across Great Britain were left without heat or light according to Citizens Advice.

In debates in Parliament this week, the energy and justice ministers were put under pressure on the issue of forced transfer of homes onto pre-payment meters. Caroline Lucas MP and Rachael Maskell MP both raised the issue in debates, while a Bill to ban the practice has been put forward by Anne McLaughlin MP.

Previous research for the Warm This Winter campaign found that a third of pre-payment meter customers are now living in a cold damp home.

The energy regulator, Ofgem, has rules that means certain groups, such as disabled people and those with long-term health conditions, should not be forced onto a prepayment meter. In October, Ofgem warned suppliers that not enough was being done to identify customers in vulnerable circumstances before installing a prepayment meter.

But Citizens Advice data reveals that in the month following Ofgem’s intervention more than more than 470,000 struggling households including a disabled person, or someone with a long term health-condition, were cut off from their energy supply at least once.

Citizens Advice also found that more than one in five (19%) prepayment meter customers were cut off in the past year then spent at least 24 hours without gas or electricity, leaving them unable to turn the heating on or cook a hot meal.

The End Fuel Poverty Coalition has been calling for a ban on the forced transfer of homes on to pre-payment meters. A spokesperson for the Coalition commented:

The staggering extent of the prepayment meters scandal is now clear. Energy firms and the Government should hang their heads in shame.

Magistrates who approved court warrants in bulk for energy firms to install prepayment meters should also reflect on their role in this injustice.

A full ban on the forced transfer of customers to prepayment meters, including via smart meter mode switching, is now the only acceptable course of action.

Citizens Advice has now joined the calls for a total ban on forced prepayment meter installations until new protections are introduced, ensuring households can no longer be fully cut off from gas and electricity.

The charity reports it has seen a 229% increase in the past year in the number of people coming for help who can’t afford to top up their prepayment meter.

Pre-payment meters crisis hits ‘smart’ customers

The forced use of pre-payment meters (PPMs) is hitting smart meter customers, according to new data released under Freedom of Information rules. [1]

Almost two-thirds of smart meters switched to the more expensive “pre-payment” mode in the first half of 2022 were due to debt (48,062 households).

The figures, obtained by the Bureau of Investigative Journalism (TBIJ) and shared with the End Fuel Poverty Coalition, reveal that in 64.4% of cases, a smart meter was forced into a pre-payment mode as the customer was in debt to their energy firm.

Separate figures for the Warm This Winter campaign, reveal that 68% of smart pre-payment meter customers are vulnerable, with 58% having health conditions or disabilities. [2]

While the number of smart meter customers who have been “disconnected by the backdoor” is lower than for those on traditional PPMs, it is still estimated that 53% have drastically reduced their energy use in recent months and 35% now live in a cold damp home as a result. [3]

Overall, the data obtained by TBIJ also shows that 895,739 customers were in debt to their energy firm by the end of June 2022, before the winter price rises kicked in.

Pre-payment meters could cost customers in excess of £200 more for their energy this winter. Recent investigations by the media revealed that energy firms have secured almost 500,000 court warrants to install these traditional pre-payment meters in homes of customers in debt since the end of lockdown. Smart meters can be turned to pre-payment mode without a court warrant.

The End Fuel Poverty Coalition has called for a ban on the forced transfer of customers to all kinds of pre-payment meters. A spokesperson for the Coalition commented:

The new figures reveal the extent to which unscrupulous suppliers are forcing people onto more expensive tariffs by switching their smart meter remotely onto pre-payment mode.

Consumer groups and charities have long supported the roll out of smart meters as a way to help save energy and reduce bills, but these findings will undermine the programme going forward.

When customers in debt are on pre-payment tariffs they will repay their debts and also incur daily standing charges – on top of paying more for their energy at a higher unit cost. This can often lead to customers being “disconnected by the back door” as the cost of servicing debt and standing charges leaves them with no money for energy.

The End Fuel Poverty Coalition now advises any customers to check all messages from energy firms and if they are contacted about a pre-payment meter installation to contact the Good Law Project who are looking to challenge these transfers.

Jacky Peacock from Advice for Renters commented:

We are aware of some families who sign Agreements for the switch to PPMs without understanding what they are signing up for.

This affects people who are not fluent in English the worst, with many just thinking that this is a way to avoid big bills they cannot afford to pay.

Nobody from the energy industry explains that if they don’t constantly top up the meter to cover their debts and the ongoing standing charge as well as the energy they need, they could be left disconnected.

Ruth London from Fuel Poverty Action added:

MPs have recently told the Government that their constituents would die this winter – unable to access even light, a phone, hot water, or urgently needed medical equipment that depends on power.

They said they did not want to go home to a warm Christmas, leaving people who are ill or old to die in misery, or leaving children in the cold and dark.

They asked for at least a moratorium on this practice, which amounts to disconnection by the back door.

In response to the urgency of this crisis, the Minister promised to do absolutely nothing.

Graham Duxbury, Chief Executive of Groundwork UK:

Smart meters and pre-payment meters can be a great tool for people to take control of their energy use. In the current energy price crisis, however, forcibly switching people to pre-payment meters could have massively detrimental consequences, impacting on people’s physical and mental health.

Our Green Doctor energy advisers are seeing more and more households being switched to pre-payment meters because of relatively small debts.

The answer is not to drive people into greater hardship, but to provide more, and better coordinated, independent advice so that people can navigate a challenging winter without falling into crisis.

ENDS

[1] The Bureau of Investigative Journalism obtained the data through Freedom of Information requests to Ofgem. Data only available for Q1 and Q2 2022. Figures apply to England, Scotland and Wales only. The 46,082 households switched to smart meter PPM mode by suppliers in Q1 and Q2 2002 is more than the number switched to PPM mode in the whole of 2021 (43,072).

[2] 2,186 people interviewed between 20-21 December 2022. Results were weighted to be representative of the GB population. A vulnerable household is defined as having a child under 6, an adult over 65, a person who is disabled or with a long term health condition.

[3] Figures relate only to people on Smart PPMs, not legacy PPMs. 53% stat from previous research for Warm This Winter, which interviewed 2,198 people between 29-30 November 2022. Results were weighted to be representative of the GB population.

Government announce cut in financial support next winter

The Government has announced a cut in the support available to households in fuel poverty next winter.

While the Energy Price Guarantee will continue to cap the unit cost of energy, all energy bills will increase from 1 April 2023 – at the same time as the Energy Bills Support Scheme finishes.

The final increase will depend on energy prices, which have fallen in recent months, but currently predictions range from a 12% to 20% increase.

In 2022/23, the most vulnerable households were given support of up to £1,500. According to media reports, for 2023/24 the figure reduces to £1,350. A 10% cut in support.

These changes come on top of additional increases in energy costs which many Economy 7 customers saw on their bills from 1 January 2023. Support in 2023/24 for households not on means-tested benefits and those living in “off gas grid” properties have also yet to be confirmed by the Government.

A spokesperson for the End Fuel Poverty Coalition commented:

This winter we have seen over 9m adults living in Dickensian conditions in cold damp homes.

Yet despite energy bills increasing by 20% from April 2023, the support for the most vulnerable announced by the Government has not increased from last year.

In short, bills are going up, support is going down and households will be worse off than they were this winter.

While we support the principle of prioritising support for those who need it the most, the Government must go further to help the millions of homes in fuel poverty throughout 2023.

This does mean more financial support, but also non-financial measures such as banning the forced transfer of households onto more expensive pre-payment meters.

Based on media reports, the End Fuel Poverty Coalition estimate that the support on offer in 2023/24 will be as below:

Financial Year 2022/23 Financial Year 2023/24
£2,500 average household bill through Energy Price Guarantee* £3,000 average household bill through Energy Price Guarantee*
£400 Energy Bill Support Scheme to all households. No plans to extend scheme.
£650 cost-of-living payment for means-tested benefit claimants, split into two payments (in summer and autumn 2022). £900 payment to 8m households on means tested benefits (in four instalments through to Spring 2024)
£150 payments for people with disabilities. £150 payment for more than six million people with disabilities.
Up to £300 payment for pensioners. £300 for over eight million pensioners on top of their Winter Fuel Payments.
Source: https://www.gov.uk/guidance/cost-of-living-payment Source: Press Association as reported by ITV and others.
* Please note the Energy Price Guarantee caps the unit cost paid, not the total bill. This may change due to changing energy prices. Many more vulnerable households pay significantly more than the average stated. The average household bill in winter 2021/22 was £1,277, meaning the average household will be paying £1,523 to £1,723 more by winter 2023/24.

Nine million adults spent Christmas in Dickensian conditions

Millions of adults with pre-existing serious health conditions are spending the Christmas and New Year period in cold damp homes, according to new research. [1]

The figures for the Warm This Winter campaign reveal the growing depth of the energy bills crisis – especially among the most vulnerable.

18% of the population (9.02m adults) are living in cold damp homes this month, with a quarter of people with health conditions which are made worse by cold and damp unable to heat their homes to a safe standard (26%, 4.75m).

A third of those with disabilities (28%, 1.9m) live in cold damp homes.

The research also reveals that people are not just concerned about their own welfare. One in ten of the population (9%) are worried about an older relative being exposed to the health impacts of living in a cold damp home. Almost a third (27%) were worried about the impact of fuel poverty on their local community.

And despite Government campaigns calling for people to save energy, over half (55%) believe they had already implemented energy reduction measures prior to this winter – with 15% already cutting back their energy use to the bare minimum necessary to keep safe.

Jonathan Bean from Buckinghamshire, describes his experience of fuel poverty:

It’s a daily battle for my asthmatic son and I to keep our home free of mould and damp.

We have dehumidifiers and electric heaters running as much as we can afford to, but that still doesn’t keep the home any warmer than 12 degrees.

We even had ice forming inside our double glazed windows during the recent cold weather.

Our electricity bills keep going up and while others who are ‘off the gas grid’ have had extra government support, we haven’t.

A spokesperson for the End Fuel Poverty Coalition which is part of the Warm This Winter campaign, commented:

As we get deeper into winter, our worst fears about rising energy bills are being realised.

We are now a nation unable to keep itself warm, concerned for the well being of our nearest and dearest and spending a festive season suffering in cold damp homes.

Jacky Peacock from Advice for Renters, a charity working with those in fuel poverty in North London, added:

We used to read Dickens at Christmas with a sense of nostalgia, but now Dickensian conditions are back for those who can’t afford to heat their homes this winter.

Graham Easterlow, Chief Executive of East Durham Trust in Peterlee, said:

Working in the most left behind place in England we see the devastating effects that poor housing has on people’s health and wellbeing. With many unable to heat their homes we fear that more homes will suffer with damp and cold.

Alice Harrison, Fossil Fuels Campaign Leader at Global Witness, commented:

It’s scandalous how many people will be celebrating Christmas this year in cold, damp homes.

If our government was serious about addressing energy poverty this winter it would hike taxes on the oil and gas companies that have made billions on the back of the skyrocketing cost of energy and the impoverishment of millions of UK citizens.

Simon Brammer, Head of Cities at climate solutions charity Ashden, said:

How is it possible in the world’s sixth richest country that people are still living in cold, expensive to heat homes, causing misery and poor health for millions?

We urgently need a UK-wide, 10-year, street-by-street retrofit plan that is properly funded – combined with a skills strategy to ensure we have the skilled labour to deliver it.

Graham Duxbury, Chief Executive of Groundwork UK added

We are desperately worried about the mental and physical health effects of people living in cold, damp homes this Christmas.

Our Green Doctors are making an unprecedented number of home visits to deliver energy advice and tell us that they are seeing more and more people living in ‘pre-Victorian conditions’, forced to survive without heat and cutting back on essential personal items.

This is not a short-term crisis but a long-term need, which can only be resolved by putting in place extra protection for those most vulnerable, a more coordinated approach to funding advice services and by ramping up efforts to retrofit homes.

Stuart Bretherton, Energy For All Campaign Coordinator at Fuel Poverty Action, said:

The political choices of this government are quickly turning this poverty crisis into a public health crisis, which could result in an unprecedented number of deaths from cold and damp this winter.

This is in a year that profits for energy companies have doubled or even tripled in some cases. With this money you could end deaths from fuel poverty by making sure everyone could access enough energy to meet their basic needs.

ENDS

‘Dickensian’ graphic used is from Shutterstock and is an artists conception.

[1] 2,186 people interviewed between 20-21 December 2022. Results were weighted to be representative of the GB population.

The GB population aged 18 or over stands at 51,435,642 (ONS) and population statistics are derived from this number. The figures apply to adults only and the number of children also in cold damp homes would be in addition to this. Deeper analysis of the data will be published in the new year on this issue.

[2] Comparison with previous research

Nov 2022 [3] Dec 2022 [1]
All adult public in cold damp homes 19% 18%
Vulnerable adults in cold damp homes 22% 21%
Adults with health conditions in cold damp homes 26% 26%
Elderly people in cold damp homes 10% 10%
Disabled adults in cold damp homes 28% 29%
Young families in cold damp homes 26% 21%
Rural and vulnerable adults in cold damp homes 23% 20%
BAME adults in cold damp homes 22% 24%
Pre-Payment Meter (PPM) Customers in cold damp homes 31% 36%

[3] 2,198 people interviewed between 29-30 November 2022. Results were weighted to be representative of the GB population.

Number of pre-payment meter customers living in cold damp homes revealed

Pre-payment meters (PPMs) are forcing people to live in cold damp homes, according to new research. [1]

The figures, for the Warm This Winter campaign, reveal that 64% of pre-payment meter customers are vulnerable, with 51% having health conditions or disabilities.

Over one in ten (13%) PPM customers have already self-disconnected by massively reducing their energy supply. The situation is even worse among those on traditional PPMs (like those installed via court warrant) compared to those on smart meter PPMs [2].

Almost a third (31%) of PPM customers now live in cold damp homes (more than the national average of 19%). Among those customers who are on PPMs and also classified as vulnerable, the situation is even more stark, with 14% disconnecting and 36% now living in a cold damp home.These figures are before the current predicted cold snap kicks in and increases energy bills further.

Pre-payment meters could cost customers in excess of £200 more for their energy this winter. A recent investigation for the i paper, revealed that energy firms have secured almost 500,000 court warrants to install these meters in homes of customers in debt since the end of lockdown.

When customers are on pre-payment tariffs they will repay their energy debts and also incur daily standing charges – on top of paying more for their energy at a higher unit cost. This can often lead to customers “self-disconnecting” as the cost of servicing debt and standing charges leaves them with no money for energy.

In some cases, customers volunteer to go onto a prepayment meter, but research for one energy firm suggested that in 14% of cases, this was done without a customer’s active, informed consent. [3]

The End Fuel Poverty Coalition has called for a ban on the forced transfer of customers to pre-payment meters. A spokesperson commented:

People on low incomes have always saved energy, but if people self-disconnect or drastically reduce their energy use, they are at risk from the severe health complications of living in a cold damp home.

Children and those who are elderly, disabled or have pre-existing medical conditions are especially vulnerable this winter.

The research shows the scandal of people condemned to a winter of misery – forced on them by energy firms.

These firms appear to be manipulating the courts to push people onto pre-payment meters.

The i investigation went on to uncover that in some cases courts are “batch approving” applications for warrants. In one series of cases, seen by the journalist, almost 500 applications for pre-payment meter warrants were issued in just under four minutes.

The End Fuel Poverty Coalition now advises any customers to check all messages from energy firms and if they are contacted about a pre-payment meter installation to contact the Good Law Project who are looking to challenge these transfers.

The investigation comes after a weekend of “Warm This Winter” protests in more than 40 locations across the UK. Ruth London of Fuel Poverty Action took part in the day of action and commented:

There is growing anger at the absolute poverty so many people are facing now – it feels like going back to Victorian times and many will not survive this winter.

And why? There is plenty of money. Energy corporations are making eye-watering profits from the money we are paying them. Patriotic Millionaires are crying out to be taxed. And meanwhile people are dying in cold, uninsulated homes.

Fuel Poverty Action is fighting for Energy For All – enough energy free for each home to cover the basics like heating and lighting, paid for by windfall taxes, ending the millions spent daily on fossil fuel subsidies, and higher tariffs for luxury or wasteful energy use.

With temperatures set to plummet this week, the National Pensioners Convention has called a protest against excess winter mortality rates on Thursday 8 December 2022, 12 noon (meet George V Statue, Old Palace Yard).

Caroline Abrahams, Charity Director at Age UK, said:

People on pre-payment meters (PPMs) are some of the most vulnerable among us. I dread to think how many older people have been affected by the 500,000 warrants issued for forced PPM installations since the end of lockdown.

PPM charges are generally higher than charges for those paying by direct debit, leading to higher rates of fuel poverty among this group.

Although PPMs are included in the Government’s £400 energy bill discount scheme, many are missing out on this much-needed help because of problems with the vouchers that are being issued for those on older meters. In fact we estimate that at least 150,000 older households relying on an old PPM will miss out on the £400 and worryingly, recent Government figures suggest over 40% of vouchers sent to PPM households are yet to be redeemed.

We want to see a promotional campaign to encourage those people with old PPMs to redeem their vouchers, with repeat vouchers dispatched to homes yet to redeem and extensions given to expiry dates. The Government and Ofgem must also consider a moratorium on forced PPM installations until energy prices stabilise to avoid older people self-disconnecting this winter.

ENDS
[1] 2,198 people interviewed between 29-30 November 2022. Results were weighted to be representative of the UK population. A vulnerable household is defined as having a child under 6, an adult over 65, a person who is disabled or with a long term health condition.

[2] 18% of those on old fashioned PPMs and 7% of smart meter PPM customers have massively reduced their energy use with a further 33% of old PPM and 53% of smart PPM households somewhat reducing consumption.

[3] Research by Utilita, reported in The Sun, indicates that while 86% did choose to be on a PPM, this would imply that as many as 14% of the 4.5m PPM households (i.e. 630,000 households) did not actively choose to be on the tariffs.

Closing tax loopholes could raise £22bn to tackle energy bills crisis

Removing the tax incentive loophole in the government’s energy profits levy would have generated at least £22bn in additional revenue.

The investment incentive loophole allows oil and gas firms to claw back more than 91% of their capital investment in the form of tax relief.

This then incentivises further investment in exploring and extracting more oil and gas that will worsen climate change and do little to address the energy crisis. The loophole has already been exploited by companies including Shell, which paid no windfall tax this year despite the tax operating since May.

As reported exclusively in the Independent, closing this loophole alone could pay for emergency insulation measures for 3.31 million households and cut energy costs by £336 per year per household next year.

Produced by the New Economics Foundation for the Warm this Winter coalition, which includes End Fuel Poverty Coalition, Possible, Uplift and Green Alliance, the report analysed the savings from a programme of tax and spend that the Chancellor could have chosen instead, focusing on energy efficiency and insulation.

Previously the End Fuel Poverty Coalition has indicated that the cost of keeping everyone warm this winter would be in the region of £14 billion.

The research also outlines how, if the government got on with the job of more than tripling installed capacity of onshore wind, offshore wind and solar by 2030, then there would be £28.5 billion of savings to the UK’s energy system by 2025. If the government unblocks onshore wind and avoids restricting new solar energy projects, this would save an additional of £3.1 billion by 2025 compared to the current scenario.

Polling conducted by Survation to coincide with the research found that 85% of people in the UK support a windfall tax to invest in insulation and lower energy bills.

Amongst those who voted Conservative in 2019, 85% supported these measures, and among those who intend to vote Conservative in the next election 87% of people supported this.  81% want to see the government speed up the development of onshore wind and solar energy to less reliance on gas.

The findings are being released on Fuel Poverty Awareness Day and as the government considers an amendment to the Levelling-up and Regeneration Bill that would remove the ban on onshore wind in England, and as the government is consulting on a £1bn programme on energy efficiency.

A spokesperson for the End Fuel Poverty Coalition, commented:

Millions of people are now condemned to facing the misery of living in cold damp homes this winter, but these calculations show that these are political choices.

The Government has plenty of room to help out.

Not only could the solutions proposed by the Warm This Winter campaign save households money and alleviate some of the worst effects of fuel poverty this winter, but they would be cost neutral to the Government.

Sadly the Government chose a different path and now will have to brace itself for a fuel poverty-led surge on the NHS this winter.

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

Getting off gas for good with renewable energy would cut energy bills and emissions, helping us to build a safer future for all.

Oil and gas producers are raking in record profits, even as people’s homes get colder and our climate gets hotter.

Despite this, the government is still resisting unblocking onshore wind, even though it’s a vital source of clean, cheap energy which is highly popular across the UK.

We need urgent action to get on with the job of delivering clean energy and insulation so we can end reliance on polluting, expensive gas.

Tessa Khan, director of Uplift, said:

For a small fraction of the money this government is prepared to spend subsidising gas fields and on expensive gas imports, it could be investing in sensible solutions that will end up saving the Treasury money and lead to permanently lower bills for households.

Practical, proven measures, like home insulation and affordable onshore renewables are what this country needs, not more wasteful deals with profiteering gas giants that are pushing millions into fuel poverty. The first priority of this government must be to the people in the UK, not their profits.

Emmet Kiberd, economist at NEF, said:

Warm this Winter’s proposals would boost growth, create jobs and help us meet our national net zero commitments and could be fully funded by making oil and gas firms pay their fair share in windfall taxes.

Removing the investment incentive for oil and gas firms would easily fund a £3.6bn programme of energy efficiency improvements over the next two years, while still leaving the oil and gas sector with profits after tax around the normal level.

Energy self-disconnection epidemic hitting most vulnerable

Millions of elderly, disabled, young families and those with a serious health condition are spending the winter in cold damp homes, according to new research. [1]

The figures released to mark the Warm This Winter Day of Action, reveal 15% of vulnerable people have now “self-disconnected” by massively reducing their energy supply. A further 51% are now rationing – and somewhat reducing – their energy consumption.

As a result, almost a quarter (22%) of vulnerable people are now living in cold damp homes – with many of these (37%) experiencing such conditions for the first time this winter.

By comparison, 12% of the general population have self-disconnected and a further 50% are now rationing use, while 19% of the general public are now living in cold damp homes.

Anne Vivian-Smith from Nottingham will be sharing her story at the Warm This Winter rally against fuel poverty in London on 3 December 2022. Anne commented:

I spend my day sitting in the cold with four thermal layers, two blankets, and a hot water bottle. But if you’re immobile and don’t generate your own heat you can’t retain your own heat.

We just found out the cost of heating a room for one hour is £2. So if I put the heating on for an hour in the morning and an hour in the evening that’s nearly £30 a week, £122 a month. Just for heating.

It’s impossible to afford that. Ceiling hoists, powered wheelchair, electric profiling bed and a motor assistive front door all add to cost.

Worse still is my electric Closomat loo – it’s costing me 30 pence to spend a penny!

Non-disabled people don’t face this level of humiliation, but this is the reality for many of us who use medical equipment or need extra help to get around.

I’ve become one of those people spending time on the bus.

I hadn’t appreciated the level of distress the cold is causing me until I recently had the opportunity to be in the warm for a bit. The project then closed so the chance was taken from me. I’m really struggling to lose all the negative feelings it’s caused.

The research goes on to show that Anne is not alone.

Over a third (38%) of vulnerable people have seen their mental health decline as a direct result of their bills.

Just as worryingly, 44% of people with a health condition or disability have seen their condition deteriorate over the last three months.

To mark the Warm This Winter Day of Action, events at over 40 locations around the UK will take place. These range from public rallies and occupation of public spaces to “warm up” to creating fuel poverty Christmas cards to send to MPs.

A spokesperson for the End Fuel Poverty Coalition commented:

If people self-disconnect or drastically reduce their energy use, they are at risk from the severe health complications of living in a cold damp home.

People on low incomes have always saved energy, they don’t need the government to tell them how to do so.

But now rising costs are forcing them to go much further, risking their own health by cutting energy use to the point that they are living in a cold damp home.

Children and those who are elderly, disabled or have pre-existing medical conditions are especially vulnerable this winter.

Jelly Moring, Organiser at Parents for Future UK which is one of the organisations staging arts and craft-based events on the day of acton, added:

It is appalling and unjustifiable that millions of vulnerable households are struggling to pay their energy bills and keep their homes warm this winter while energy companies make record profits.

Real action from the government is needed.

Along with providing increased support to those who are suffering the most, it is critical that the government also properly fund home upgrades and replace expensive and volatile fossil fuels with clean, cheap, homegrown renewables.

Only then can we lower bills for households in the long term and keep our families warm in the winter.

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

This report is shocking but sadly not surprising. We know parents on the lowest incomes are deeply worried about how they are going to keep their children warm over the Christmas holidays, and will be making sacrifices.

They might be cooking hot food only for their children and having cold food themselves, or nothing at all.

They’re likely to be turning off the heating in their bedrooms to make sure there’s enough money left to keep their children warm.

With the cost-of-living payments from the UK government not coming in until April, millions of families face a miserable winter where they may struggle to heat their homes.

The UK government needs to step in now and provide cost of living support this winter, and not wait to bring in further measures in the Spring.

Tessa Khan, executive director of Uplift and one of the organisers of the Warm This Winter Day of Action, commented:

This government is clearly failing to fix the energy price crisis when so many households in the UK are rationing their energy use. What’s worse is that Ministers know how to solve it, starting with urgently insulating homes on a scale and with levels of funding that we’ve yet to see.

If the government can subsidise oil and gas companies to the tune of many billions to develop new North Sea fields, which by the way will do nothing to help people, it can and must plough equivalent amounts into insulating homes, which is guaranteed to reduce people’s bills and make sure the elderly, disabled, parents with small children can stay warm this winter.

Ruth London of Fuel Poverty Action said:

There is growing anger at the absolute poverty so many people are facing now – it feels like going back to Victorian times. And why?

There is plenty of money.

Energy corporations are making eye-watering profits from the money we are paying them. Patriotic Millionaires are crying out to be taxed. And meanwhile people are dying in cold, uninsulated homes.

Fuel Poverty Action is fighting for Energy For All – enough energy free for each home to cover the basics like heating and lighting, paid for by windfall taxes, ending the millions spent daily on fossil fuel subsidies, and higher tariffs for luxury or wasteful energy use.

ENDS

Image from Shutterstock posed by actor.

[1] 2,198 people interviewed between 29-30 November 2022. Results were weighted to be representative of the UK population.

The UK Population aged 18 or over stands at 52,890,044 (ONS). Of these 60.04% (31,755,182) are classed as being vulnerable (i.e. having a disability, long term lung, heart or mental health condition, being aged over 65 or having a child aged 0-6 in the home). Of these 22.02% (6,992,491) are living in a cold damp home.

Of these 37.18% (2,599,808) are experiencing living in a cold damp home for the first time this year (this represents 8.2% of all vulnerable people).

Among the general population 3,914,224 are living in cold damp homes for the first time (7.4% of total UK population).

Immediate ban needed on forced pre-payment meter transfers

The devastating impact of forced transfer of households onto more expensive Pre-Payment Meters (PPMs) has led the End Fuel Poverty Coalition to call for an immediate ban on their imposition.

Energy firms’ licence conditions protect many vulnerable people from formal disconnection over the winter, however evidence from End Fuel Poverty Coalition members shows that customers in debt who are forced onto a PPM by their supplier will often “self-disconnect” and stop using energy.

Reports have established that energy suppliers are now using PPMs more often as a method of revenue protection. This includes:

  • Using court warrants – where campaigners believe magistrates courts may be “rubber stamping” warrants to install meters. Freedom of information requests revealed 187,000 such applications were made in the first six months of 2022 so it is difficult to believe these are approved on a case-by-case basis.
  • Inappropriately switching smart meters from credit to prepayment mode, thereby forcibly installing PPMs remotely.
  • Failing to follow due process, including assessing households for vulnerabilities, ensuring it is safe to install a PPM and ensuring customers receive the required warnings of the impending change.

Ofgem recognised that this is a breach of licence conditions and wrote to energy firms urging them to stop this practice. However, anecdotal evidence from End Fuel Poverty Coalition members suggests this continues to occur where it is not appropriate to do so.

The End Fuel Poverty Coalition now advises any customers to check all messages from energy firms and if they are contacted about a pre-payment meter installation to contact the Good Law Project who are looking to challenge these transfers.

The Coalition has called on the Government and Ofgem to:

  • Ban switching customers to a prepayment meter under warrant and ban switching smart meters to PPM mode without active, informed, consumer consent.
  • With rising levels of arrears and self-disconnections further support should be provided from Government and suppliers in the form of payment matching and debt write-off schemes.
  • Ensure that the combination of the price cap and Energy Price Guarantee eliminates the premium that PPM users pay for their energy.
  • Remind magistrates of their duty to consider warrant applications on their individual merits and end the batch approval of warrants for PPM as is currently taking place.

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

Customers have an opportunity to discuss with their energy company the best way to resolve any debt. To override this option is in breach of the protocol for energy companies.

Customers must be the first to know not the last and must be protected from such unscrupulous energy companies. We have written to Ofgem to urge the Regulator to immediately intervene to ensure this is so.

Where customers do not see pre-payment as the right option for them, they must immediately be returned to their original smart meter plan.

Ruth London of Fuel Poverty Action said:

Imposition of a pre-payment meter is disconnection by the back door. When you can’t top up the meter everything clicks off, regardless of whether you are old, ill, or have a newborn baby.

Now smart meters are being used to cut people off supply by imposing pre-payment remotely. We were all encouraged to get smart meters and told they would help us save money. Some people always suspected they would be used for illegal disconnections. They have been proved right.

Pre-payment should be a voluntary option. Imposing it is violent, and in the present situation it is likely to swell the numbers of excess winter deaths.

Joe Cole, CEO, Advice for Renters, commented:

One of our clients who suffers from PTSD was switched from his smart meter to pre-payment without notice and came close to suicide before the energy company were alerted by us and put his account back into credit.

Jo Maugham Executive Director, Good Law Project, said:

Utility companies are repeatedly failing their supplier obligations and the customer safeguards that are in place, and are applying to the already overstretched courts for 10,000s of warrants a month to force their way into people’s homes to fit pre-payment meters. This puts people at risk of self-disconnecting and the health risks of cold, dark, damp homes. This is unacceptable and we are exploring legal routes to put a stop to it.

A spokesperson for the End Fuel Poverty Coalition added:

Self-disconnection is as dangerous as disconnection by any other means and energy firms need to be alert to the pain they are causing consumers by switching them to pre-payment meters without their active and informed consent.

If people don’t keep their homes warm, they are at risk from the severe health complications of living in a cold damp home and those who are elderly, disabled or have pre-existing medical conditions are especially vulnerable this winter.

ENDS

All sources and detail available at https://www.endfuelpoverty.org.uk/about-fuel-poverty/forced-pre-payment-meter-transfer/

Customers can contact the Good Law Project by emailing legal@goodlawproject.org