Coalition reveals five priorities for the Comprehensive Spending Review

The End Fuel Poverty Coalition has called on the government’s Comprehensive Spending Review to solve a problem that has plagued the country for generations.

The submission sets out how fuel poverty could be all but eradicated within the lifetime of this Parliament.

Evidence from Public Health England shows that fuel poverty puts households more at risk from the worst effects of Covid-19.

Therefore, ending fuel poverty is now an urgent public health priority, which can only be solved through economic measures.

The benefits of ending fuel poverty include a faster transition to a just net zero, the levelling up of the economy and a green stimulus to aid the recovery from lockdown.

On the other hand, with energy use rising as people stay at home more and the predicted income squeeze, it is estimated that the numbers in fuel poverty could soar by 200,000. The recent National Energy Action / Energy Action Scotland monitor revealed a significant hardship for fuel poor households in the coming winter, as a potent combination of higher energy use resulting from staying at home for longer is mixed with reductions in income.

One in three British households are already concerned about the health impacts of living in a cold home this winter. And should a second wave of Covid-19 hit during cold weather, the impact could be catastrophic for individuals and our health services.

As a result, the Coalition urges the Government to commit to five main spending priorities:

1) Rapid roll-out of large-scale energy efficiency programmes

2) Urgent delivery of government promises on tackling fuel poverty

3) This unprecedented level of investment needs to be coupled with large scale training programmes

4) Immediate steps to improve energy standards in the private rented sector

5) Fuel Poverty Debt Relief to ensure fewer people will have to choose between heating and eating this winter

The full submission can be read online: http://www.endfuelpoverty.org.uk/wp-content/uploads/End-Fuel-Poverty-Coalition-CSR-Submission-FINAL.pdf

Hundreds of thousands set to be forced into fuel poverty

Over 200,000 households are set to fall into fuel poverty as the economy struggles to recover from lockdown, according to new estimates. [1]

The End Fuel Poverty Coalition is warning that as the numbers in fuel poverty soar, a future wave of COVID-19 striking during colder weather could be catastrophic for individuals and health services.

Public Health England have declared that there is “clear evidence on the links between cold temperatures and respiratory problems. Resistance to respiratory infections is lowered by cool temperatures and can increase the risk of respiratory illness.” [2]

The Coalition has launched a petition calling on the government to build on announcements in the Economic Statement and take urgent action to save lives and help address the financial impact of the current crisis.

Fuel poverty is caused by low income, high fuel prices, poor energy efficiency, unaffordable housing and poor quality private rental housing. At least 2.4m households in England are already in fuel poverty, affecting 10% of the population. [3]

William Baker, from Solutions to Tackle Energy Poverty and member of the Coalition, commented:

It has never been more important for the government to fix the roof while the sun is shining.

While it is summer now, colder temperatures are on the way and hundreds of thousands more people will feel the harsh reality of fuel poverty. In just a few months we could see a perfect storm of cold homes, high winter fuel bills and a future wave of COVID-19 hitting the NHS during winter – a period when it always struggles to maintain services.

The Coalition wrote to the Prime Minister on 23 June setting out four steps for the government to take to tackle fuel poverty before the winter.

The Chancellor’s Economic Statement of 8 July introduced partial measures to help improve energy efficiency, but the Coalition argues that the government must go further.

Jacky Peacock, from Advice4Renters, said:

Ending fuel poverty is a public health priority, but it can only be solved through economic measures.

The government must deliver its full manifesto pledge to invest £9.2 billion in building energy efficiency, extend the Warm Home Discount and introduce wider Home Upgrade Grants. It must also take further steps to improve energy standards in the private rented sector, alongside improved security and affordability for private tenants.

Finally, we must see a Fuel Poverty Debt Relief, not deferral of payment, programme introduced to ensure fewer people will have to choose between heating and eating.

Ruth London from Fuel Poverty Action added:

The Chancellor’s £2 billion for energy efficiency retrofits could have done wonders to relieve fuel poverty.  Instead, targeted at homeowners and landlords, it will do very little for renters. And without clear protections, homeowners will be at the mercy of high-pressure sales teams and unskilled retrofitters, who can leave them colder, and poorer, than before.

The public have been asked to show their support for steps to tackle fuel poverty by signing the petition https://www.change.org/EndFuelPoverty.

[1] End Fuel Poverty Coalition calculations. Unemployment is predicted to rocket from 1.29m to 3.08m people by late 2020, with the OECD predicting even higher figures. 3.08m people equates to 1.17m households. 148,000 or 30% of households with an unemployed HRP were fuel poor in 2018 (Government data). This will increase to 351,000 households in late 2020, assuming the fuel poverty rate for the unemployed is still 30% – a growth of over 200,000 households. Furthermore, many more households are likely to be forced into fuel poverty due to both reduced income and higher fuel bills arising from fewer working hours and spending more time in the home. 

[2] PHE, 2014. Warm homes enable immune systems to better fight off viruses, improve the likelihood of people with viruses only suffering ‘mild’ symptoms and help improve the recovery process. See: Baker, Ambrose et. al. https://extra.shu.ac.uk/ppp-online/wp-content/uploads/2020/05/stuck-home-cold-covid-19-fuel-poor.pdf

[3] http://www.endfuelpoverty.org.uk/latest-fuel-poverty-data-published/

Coalition responds to Chancellor’s Economic Statement

Ending fuel poverty is a public health priority, which can only be solved through economic measures. We hope that the plans set out in the Chancellor’s Economic Statement are the first step towards an ambitious programme to end fuel poverty.

The Green Homes Grant and the social housing decarbonisation fund are welcome, but must be expanded to become long-term programmes. And the government must go further and faster.

The government must deliver the full manifesto pledge to invest £9.2 billion in building energy efficiency, extend the Warm Home Discount and introduce wider Home Upgrade Grants. It must also take further steps to improve energy standards in the private rented sector, alongside improved security and affordability for private tenants.

Finally, we must see a Fuel Poverty Debt Relief programme (not deferral) introduced to ensure fewer people will have to choose between heating and eating.

 

End Fuel Poverty Coalition writes to Prime Minister

The End Fuel Poverty Coalition has written to the Prime Minister, Boris Johnson, warning of the risks of a future wave of COVID-19 striking during colder winter months.

In the letter, copied to Minister Kwasi Kwarteng MP, the Coalition write:

Dear Prime Minister,

Urgent action is needed now to prevent tens of thousands of needless deaths which could overwhelm the country this coming winter.

Evidence from Public Health England (PHE) shows that fuel poverty puts households more at risk from the worst effects of Covid-19.

However, policy to end fuel poverty has been frozen for three years.

Should a second wave of Covid-19 hit during cold weather, the impact could be catastrophic for individuals and our health services.

Energy use is rising as people stay at home more, incomes are being squeezed and improvements in energy efficiency of housing are on hold.

This means the numbers in fuel poverty are set to soar.

While there is currently no cure for Covid-19, cold homes are entirely preventable and four clear actions must be taken to save lives and help address the financial impact of the current crisis:

  • Rapid roll-out of large-scale energy efficiency programmes which would also deliver a green economic stimulus that is shovel ready (e.g. retrofitting of people’s homes and improved heating systems). The Government must confirm their manifesto pledge to invest £9.2 billion in building energy efficiency and bring forward £2.8 billion to invest in the next two years which can support 42,500 jobs across the country and help a million households save an average of £270 on their energy bills. 150,000 jobs could be supported to 2030.
  • Urgent delivery of government promises on tackling fuel poverty, such as extension of Warm Home Discount, introduction of the promised Home Upgrade Grants and social housing decarbonisation programme.
  • Immediate steps to improve energy standards in the private rented sector, alongside improved security and affordability for private tenants.
  • Fuel Poverty Debt Relief (not deferral) to ensure fewer people will have to choose between heating and eating.

The End Fuel Poverty Coalition campaigns to influence government and other bodies to take action to end fuel poverty and thereby improve people’s health and quality of life as well as seeking to reduce the cost of living, create jobs and negate carbon emissions in the process. It is a broad coalition of over 20 anti-poverty, environmental, health and housing campaigners, charities, local authorities, trade unions and consumer organisations.

We would welcome the opportunity to discuss this further or to hear your views on this vital issue.

A campaign on the potential devastating impact of fuel poverty combined with COVID-19 this winter will be launched by the Coalition shortly.

To be kept up to date – or join with this campaign – please email info@ endfuelpoverty.org.uk.

Emergency measures to support those in fuel poverty announced

New emergency measures have been agreed to protect the domestic energy supply of those most in need during the disruption caused by COVID-19.

From 19 March 2020, customers with pre-payment meters who may not be able to add credit can speak to their supplier about options to keep them supplied. This will benefit over 4 million customers.

This could include nominating a third party for credit top ups, having a discretionary fund added to their credit, or being sent a pre-loaded top up card so that their supply is not interrupted.

More broadly, any energy customer in financial distress will also be supported by their supplier, which could include debt repayments and bill payments being reassessed, reduced or paused where necessary, while disconnection of credit meters will be completely suspended.

Customers that are unable to top up their pre-payment meter are advised to contact their supplier immediately to discuss how they can be kept on supply.

Ofgem recommends consumers leave the meter box unlocked if they need someone else to top up the meter.

Smart meter customers should be able to top-up remotely, such as by phone, mobile application or online.

The government and energy industry have agreed to prioritise those existing customers most in need, while identifying customers whose circumstances may have changed as a direct or indirect result of COVID-19.

In addition, Ofgem has published full guidance on COVID-19.  It states:

The government has also launched an emergency package with energy suppliers to ensure you don’t face any additional hardships in heating or lighting your home during the coronavirus outbreak. If you are struggling with money problems or are repaying a debt, options will include:

  • reviewing bill payment plans, including debt repayment plans
  • payment breaks or reductions in how much you pay
  • giving you greater time to pay
  • in some cases access to hardship funds

No credit meters will be disconnected during the outbreak.

If you think you can’t afford to pay for any extra gas or electricity used because you’re having to self-isolate at home, support will be available through your energy supplier. Your supplier must take into account how much you can afford, and will explain your options.

For further general advice on household energy bill support, see our guide Who to contact if it’s difficult paying bills.

Information on the employment and financial support announced by the government on 20 March is available on GOV.UK. This includes the Universal Credit, Employment and Support Allowance and your rights if your hours are cut or you are laid off.

Chief Executive of Citizens Advice, Dame Gillian Guy, said:

This is an uncertain time for many people. Energy suppliers need to play their part by communicating clearly and supporting their customers as much as possible. Keeping people on supply, making sure they have warm homes and don’t face additional financial or other stresses about their energy supply will be essential.

The measures set out and agreed will be implemented immediately by energy suppliers to alleviate pressure on energy customers. Citizen’s Advice has published guidance to energy suppliers on best practice.

Chief executive of Energy UK, Audrey Gallacher, said:

The sector is very conscious of the potential consequences for customers confined to their homes for prolonged periods and in particular those customers in vulnerable circumstances or on prepayment meters who may need additional help.

Suppliers will be doing all they can to identify such customers and provide additional support wherever possible.

Ofgem will continue to ensure suppliers meet their regulatory obligations.

You can read about National Energy Action’s response to this announcement on their website.

Emergency measures needed to protect people pushed into poverty by Covid-19

Ahead of the government publishing emergency legislation to tackle the coronavirus pandemic, Citizens Advice is calling for measures to ensure that vulnerable people and low-income families are not pushed into financial hardship as a result of the outbreak.

These include immediate changes to Universal Credit and the extension of the Cold Weather Payment to households that are self-isolating.

Those at particular risk include seven million people in the UK without savings to fall back on;  five million self-employed people; and those in 1.5 million low-income jobs that don’t qualify for statutory sick pay (SSP).

The charity warns many will also face higher energy bills and other essential costs as a consequence of having to self-isolate or stay at home to look after dependents.

Without action from the government, Citizens Advice fears the public health response to coronavirus could be undermined by people who feel they just cannot afford to self-isolate.

Citizens Advice has set out temporary emergency measures that could be taken to protect the most vulnerable during the outbreak, including:

  • Sick pay: Legislating to provide Statutory Sick Pay (SSP) at 80% of their wage for people earning less than the Lower Earnings Limit. Temporarily increasing SSP and the level of benefits to support people facing sustained drops in income.

  • Universal Credit: Suspending the Minimum Income Floor for all self-employed people. Making advance payments a grant for those making new claims and advised to self-isolate. Making use of repayment pauses for benefit debt and third party deductions.

  • Household bills: Extending the existing Cold Weather Payment to provide support for self-isolating households in receipt of Universal Credit or legacy benefits.

  • Housing: Legislating to suspend section 21 to temporarily stop no-fault evictions for private renters. Amending the grounds under which section 8 can be used to ensure people aren’t being evicted as a consequence of being in arrears due to coronavirus.

Dame Gillian Guy, Chief Executive of Citizens Advice, said:

The government has made it clear that it will do everything in its power to support the public health response to this virus, but financial protections are crucial to ensure people can follow guidance to self-isolate.

Millions of families across the country are already balanced on a financial cliff edge. Their biggest worry right now is that the knock-on effects of the coronavirus could send them tumbling over, with missed bills and rent arrears.

No one should fear being pushed into poverty if they fall ill or need to self-isolate. Yet without further emergency measures to protect society’s most vulnerable, this will be the reality for millions of people.