End Fuel Poverty Coalition, Author at End Fuel Poverty Coalition

Commons committee backs urgent action on fuel poverty

The Government should immediately update its package of support to help households with soaring energy bills before the cost-of-living crisis grips even harder following October’s energy price cap increase, according to a new report by the House of Commons Business, Energy and Industrial Strategy Committee.

The report argues that the Government’s Energy Bills Support Scheme will not be enough given the continued rising energy prices households will face. MPs warn that the size of the package has been ‘eclipsed by the scale of the crisis.’

Committee Chair Darren Jones MP said:

Once again, the energy crisis is racing ahead of the Government. To prevent millions from dropping into unmanageable debt it’s imperative that the support package is updated and implemented before October, when the squeeze will become a full-on throttling of household finances and further tip the economy towards recession.

We were told by a number of witnesses, ‘if you think things are bad now, you’ve not seen anything yet’. This Winter is going to be extremely difficult for family finances and it’s therefore critical that public funds are better targeted to those who need it the most.

It’s an injustice that the poorest households continue to pay higher energy costs because they’re on prepayment meters. This must end and a social tariff should be brought forward.

Ultimately, Ministers know that the long-term solution is to reduce our need for energy through insulation works that keep our homes warm in winter and cool in summer. If the Government is really taking this energy crisis and the country’s net zero targets seriously it will come forward with a bold, fully funded, national home insulation program before the end of the year.

A spokesperson for the End Fuel Poverty Coalition said:

MPs are right. The crisis facing millions of homes as energy bills continue to soar is ‘ongoing and severe’.

The energy bills crisis this winter is a nightmare scenario, but the Government is sleepwalking into it.

Tory leadership hopefuls and Ministers need to wake up and announce urgent financial support to offset the predicted price rises this winter and further help vulnerable homes stay warm this winter.

But financial support will only be a stop gap solution.

We also need to see a rapid roll-out of support to make homes and community buildings more energy efficient, a full review of the consumer energy market and action to bring cheap renewable energy on stream as fast as possible.

A spokesperson for National Energy Action added:

Energy prices continue to spiral, and vulnerable households in the energy market are being hardest hit. It is vital that the plans from the UK Government and Ofgem are scrutinised by Parliament, and they act on this credible set of recommendations to help the poorest households through the energy crisis, this winter and beyond.

The next Prime Minister will need to implement these recommendations urgently, topping up the current energy support, announced in May, to offset the October increases. We also agree with the cross-party recommendation to introduce a social tariff to give fuel-poor households deep, enduring protection against persistent high energy prices, and putting in place a new scheme to help households that have accrued a mountain of debt during the crisis. The regulator must also not duck its role in reducing the growing burden of standing charges that are hitting struggling households the most. Overall, it is critical to ensure that pre-payment meter customers do not pay more for their energy and are not punished further as a result of finding their bills already unaffordable.

Finally, the winner of the leadership contest must ensure that reducing the wasted energy in our homes becomes a much more prominent part of the policy response. Improving energy efficiency should be top of their agenda as it will help ease future price spikes now and in the future.

Tory leadership hopefuls face fuel poverty crisis in constituencies

New estimates, first reported in the i Paper, have revealed the impact of the energy bills crisis on the constituents of the Tory leadership contenders.

The End Fuel Poverty Coalition has calculated that almost 60,000 households will be in fuel poverty in these four seats alone from 1 October 2022 based on current energy price cap estimates.

Across England, the estimated total is around 7.7m households likely to face fuel poverty this winter (32%).

Across the four constituencies, residents of Liz Truss’ seat in South West Norfolk will be hit the hardest with almost 40% of homes plunged into fuel poverty – even after taking into account the current levels of support promised by the previous Chancellor.

In Rishi Sunak’s own seat, more than a third (37%) of households will be in fuel poverty this coming winter.

Without urgent action from the next Prime Minister, 28% of households in Kemi Badenoch’s seat and 26% of people in Penny Mordaunt’s constituency will also face fuel poverty.

Last week, a new campaign group was formed by some of Britain’s biggest charities, calling for the leadership contenders to promise urgent action to help people through the cost of living crisis.

The group wrote to all MPs standing in the contest to ask them to pledge to:

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

None of the candidates have responded to the letters as yet (Tue 19 July 0700).

Paul Dixon, Rural Evidence Manager for Action with Communities in Rural England (ACRE) said:

This is a wake-up call for the Conservative leadership candidates and a reminder that fuel poverty is as much a problem in rural constituencies as it is in urban areas. The new Prime Minister must prioritise this issue and take decisive action to make sure everyone stays warm this winter.

Ruth London from Fuel Poverty Action added:

These demands are simple and urgent and there’s plenty of money available – including the millions of pounds being used to subsidise fossil fuel profiteers. How can any of these candidates claim that saving lives is a priority for them, when they haven’t pledged action or even responded to this urgent letter?

Ian Preston, Director of Household Energy Services at the Centre for Sustainable Energy, commented:

We need to literally insulate people from the impact of future energy price increases! If we insulate our homes and buildings well, they’ll become more energy-efficient and it saves people money so they can buy other essential items. But more than this it also helps with our energy security by reducing our dependence on fossil fuels.

A spokesperson for the End Fuel Poverty Coalition, commented:

The figures show that drastically rising levels of fuel poverty are an issue right across the country, from the inner cities to our rural areas. Even in warmer weather, fuel poverty is a huge issue and this winter it will become devastating for millions.

Candidates in the leadership race have started to acknowledge the issue, but none have yet grasped the scale of the problem and the full range of actions needed to help people this winter.

Without a co-ordinated plan to end fuel poverty, one of the first acts of the new Prime Minister will be to preside over a miserable and dangerous winter for millions of households.

Tessa Khan, director of Uplift said:

What actions will they, as Prime Minister, take to help people through this winter and permanently lower energy bills? This is what people are interested in, not this parade.

Despite this, we’ve heard virtually nothing from the candidates on their plans to fix our broken energy system, whether that’s support for upgrading the efficiency of homes, which is the cheapest, quickest way of reducing bills, or what they will do to accelerate renewables, which is now the cheapest source of energy. Proposals to expand oil and gas, or fracking, are for the birds with high gas prices predicted to stay until the end of the decade.

With winter less than 3 months away, the candidates for PM need to set out credible plans now for what they will do to help people stay warm this winter and in winters to come, because bills won’t come down otherwise. Unaffordable heating bills will be a stark reality for millions for years and it demands a coherent, practical response now.”

Methodology used to calculate the statistics can be read here.

How fuel poverty is still an issue during the summer

The majority of campaigning on fuel poverty is done in light of the excess winter deaths and wider health problems living in cold homes causes.

But fuel poverty also affects people in warmer weather.

As Dr Harriet Thomson, a Senior Lecturer in Global Social Policy and Sociology at the University of Birmingham, writes:

“If the effects of the heatwave are predicted to be so severe and/or prolonged they will extend outside the health and social care system. In other words, the extreme heat could cause illness and death, including among those with no pre-existing illnesses.”

Indeed, during the last major UK heatwave, the NHS was at crisis point and during the same year, in Japan more than 130 people died and 70,000 were rushed to hospitals; while in Quebec, the heat claimed the lives of 90.

And the situation could get worse with the Met Office predicting heatwaves will become more regular and more intense in the UK.

As the Big Issue reports, it will be the vulnerable who are most at risk from high temperatures.

Traditionally, people would turn to fans and air-conditioners to help keep themselves and their families cool, but the World Economic Forum predicts that using air-conditioners increases energy bills by 42% and warns:

“As temperatures increase around the world, cooling is emerging as a new, basic need – even in countries that traditionally have not previously required such appliances.”

But the solutions to summer fuel poverty are similar to cold weather fuel poverty. While good insulation of housing helps reduce the need for heating systems, so it can also reduce the need for cooling systems too.

As Dr. Thomson explains:

“We know that housing plays a huge role in mitigating the risks of excessive indoor warmth.

“Our research within Eastern and Central European countries found that overheating was most common in districts dominated by large apartment blocks, particularly if the building lacked cooling features such as shutters and tiled floors, natural shading from trees, and the ability to cross-ventilate.”

At the Centre for Sustainable Energy, experts have provided easy (and cheap!) advice on how to keep your home cool, but as Ian Preston from the CSE adds:

“A well-insulated and ventilated home will actually help with keeping the heat out too. If you’re able to invest in insulation do so, just make sure ventilation is considered at the same time.”

As Greenpeace UK’s energy campaigner, Georgia Whitaker, argues investing in a nationwide programme to green our homes will not only help us cope better when temperatures soar but also help bring down energy bills, tackle the cost of living crisis and slash carbon emissions to help tackle climate change, which is the driving force behind the increasing numbers of heatwaves we’re experiencing:

“The number one thing the government should be doing to beat the heat is insulating houses. Insulation keeps homes cool in the summer, warm in the winter and means people use less energy because less of it is wasted through draughty windows, walls and roofs.”

A spokesperson for the End Fuel Poverty Coalition commented:

“Keeping cool in the summer is just as important as staying warm in winter for many vulnerable groups.

“Yet energy bills remain at record highs meaning that running air coolers and fans will put a strain on household finances. In addition, efforts to insulate homes continue to lag behind what is required.

“Combined, this means that people will be subject to the full force of this summer’s heat waves.”

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:

End Fuel Poverty Coalition
The Climate Coalition
CPRE The countryside charity
Wildlife & Countryside Link
Save the Children
WWF UK
The Wildlife Trusts
Oxfam
Fuel Poverty Action
Fair Energy Campaign
Robin Hood Tax
The Centre for Sustainable Energy
Energy Action Scotland
Chartered Institute of Environmental Health
Possible
Ashden
Austerity Action Group part of Social Workers Union
New Economics Foundation
Uplift
Camden Federation of Private Tenants
Regen
Northern Housing Consortium
Groundwork
Advice for Renters
Fairer Housing
Friends of the Earth Scotland
MCS Charitable Foundation
Fairness Foundation
Tax Justice UK
Women’s Budget Group
The Economic Change Unit
Wellbeing Economy Alliance Scotland
IPPR
Chartered Institute of Housing
The Centre for Ageing Better
The Working Class Economists Group
Greenpeace UK
Friends of the Earth England, Wales and Northern Ireland
38 Degrees
Action with Communities in Rural England

Business groups call for action on fuel poverty

Leading business groups, including the Advertising Association, Business In The Community, Food and Drink Federation, the International Chamber of Commerce (ICC) and RenewableUK, have urged Conservative Party leadership candidates to support the millions of people facing fuel poverty.

In an open letter, the groups also call on the next Prime Minister to implement manifesto commitments on net zero and nature restoration.

The letter states:

In today’s challenging context, an accelerated rollout of low cost, clean energy, energy efficiency, and industrial decarbonisation is vital to protect the UK from the volatile global fuel prices underpinning the ongoing energy crisis.

This is an urgent priority as skyrocketing energy bills inflict considerable costs on businesses and push ever more households into fuel poverty.

Eliot Whittington, Director, UK Corporate Leaders Group said:

The Conservative Party has a significant track record of climate leadership. Their new leader will have a choice between building on this track record and delivering for the UK economy and society or abandoning it and condemning the country to fall behind on the energy transition and face unnecessary costs and risks.

Forward looking businesses want more, not less, ambition on climate action, especially as we see the ramifications of volatile fossil fuel supply chains ramping up the cost-of-living crisis and reducing regional energy security.

The next Prime Minister must centre climate policy and continue delivery of net zero and regenerating the UK’s nature.

Julie Hirigoyen, CEO, UK Green Building Council said:

As prices soar businesses are looking for the next Prime Minister to deliver on the UK’s legal climate commitments, not ditch them.

Tackling the climate and cost of living crises are two sides of the same coin. Insulating our homes and businesses will bring bills down, bolster energy security and help achieve net zero carbon, whilst giving a real boost to the economy and industry.

Sandy Begbie CBE, Chief Executive Officer, Scottish Financial Enterprise said:

Whoever succeeds Mr Johnson as Prime Minister will face significant challenges, particularly tackling the cost of living crisis, accelerating economic recovery and addressing the pressing climate emergency.

New Prime Minister must make ending fuel poverty a priority

The End Fuel Poverty Coalition has laid down a challenge to the candidates for the Conservative Party Leadership Contest to confirm they will tackle fuel poverty if they become Prime Minister.

At the heart of the pledges the Coalition is asking candidates to make, is for them to fully commit to spending the full amount promised by the Conservative Manifesto for energy efficiency during this Parliament.

Candidates will be asked to support the following measures:

Urgently address the operational issues with the package of support announced by the previous Chancellor in May 2022.
Commit to further, short-term, financial support for people in fuel poverty this winter and to mitigate any further increases in the price cap over and above the £2,800 predicted by Ofgem in May 2022.
Co-ordinated action to rapidly improve the energy efficiency of our homes, fulfilling 2019 Conservative Manifesto commitments and including a skills strategy to ensure work is delivered to the highest standards.
Announce 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.
Work with energy firms to ensure the country has a secure, renewable-led, domestic energy supply.

The Coalition will write to MPs as they declare their candidacy and will publish responses received.

A spokesperson for the End Fuel Coalition commented:

The next Prime Minister could leave a legacy of setting the country on the path to ending fuel poverty.

But solving the public health and social inequality challenges caused by rocketing energy bills will require a full package of support to those in fuel poverty now – as well as measures to ensure no more households become fuel poor this winter.

At the heart of candidates’ policy proposals must be a commitment to implement their party’s 2019 Manifesto promises on household energy efficiency in full.

Energy Company Obligation rules set out by Government

The End Fuel Poverty Coalition has welcomed news that the Government has laid down the regulations for the new “Energy Company Obligation” Scheme to help improve the energy efficiency of peoples homes.

The scheme, known as ECO4, will last until 2026 and will help insulate homes, reducing energy bills. To access the fund, households will need to speak to their energy supplier or social housing landlord.

A spokesperson for the Coalition commented:

It’s welcome that the necessary legislation is finally being laid, but it is absolutely vital that we get swift passage of the regulations before the summer and with cross-party support to ensure no more bumps in the road.

We would also encourage BEIS and Ofgem to continue to work with installers and energy companies to keep up the number of retrofits carried out this summer before further price hikes kick in, and take other steps to ensure effective and smooth delivery (such as tackling supply chain and skills shortage challenges).

There are still some areas where the scheme could be improved, for example in ensuring more advice can be provided and that there is more support for the lowest income households so that those who can make household contributions do not receive overly preferential treatment.

Customers will also need more support if their boilers breakdown. There is a massive reduction in the allowance for this in ECO4, and no good alternative process for emergency (keeping in mind that a heat pump install will take longer could leave households without heating for a longer period in winter).

Finally, given the scale of the current cost of living crisis, more support will be needed to help a wider number of households reduce their energy bills permanently through energy saving measures such as insulation and heat pumps.

We encourage the government to boost existing schemes with new public spending commitments in the forthcoming Autumn Budget.

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:

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?
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)?
What support will be available to the estimated 200,000 people living in Park Homes?
How can financial help reach those households who do not receive electricity bills?
What will the impact of financial support be on the care charges disabled, elderly and vulnerable people are assessed on?
What will the impact of support be on the benefits cap and the minimum income guarantee?
How will access to the Household Support Fund be made easier and consistent across the country?
What other steps will the Government be taking to ensure full take up of benefits this winter?
How can those living off-gas and people on heat networks be better supported by the Price Cap?
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.

End Fuel Poverty Coalition calls for further Ofgem action

The End Fuel Poverty Coalition has called on Ofgem to instigate five urgent reforms to the energy market to help the millions of homes in fuel poverty.

In a letter to the chief executive of the regulator, the Coalition calls for Ofgem to abandon plans to introduce a quarterly price cap increase in January 2023 which will penalise households in the depths of winter.

It also argues that changes to the price cap must be made to support those on pre-payment meters and add consumer protection to consumers who live off-gas and on heat networks.

As record numbers of households face fuel poverty this winter, the Coalition also calls for Ofgem to work with energy suppliers to create a package of additional support from suppliers for this winter.

The package suggested would be similar in scope to that introduced during the Covid pandemic, but enhanced in its ambition given the numbers of people expected to be in fuel poverty this winter and extend to debt relief rather than deferral.

The Coalition also calls for urgent reform of the regressive and punitive standing charges regime that penalises the most vulnerable.

Longer-term, the Coalition has formally requested that Ofgem reviews the operation of the price cap and works with consumer groups to set out reforms to the market that would offer more support to those in fuel poverty.

Campaigners have urged the regulator to consider the introduction of a price ceiling (i.e. a “super cap” set at current levels over which consumers will not have to pay for fair usage) and the introduction of a social tariff or “energy for all allowance.”

A spokesperson for the End Fuel Poverty Coalition, commented:

With a new political will to address the challenge of the millions of homes fuel poverty, we need to see Ofgem taking action to better support households across the country.

Ruth London from Fuel Poverty Action, said:

Ofgem has supported higher charges for people on prepayment meters, and has added to the burden of the standing charge element of bills. Both force people on low incomes to pay for energy at much higher rates than the wealthy. The current crisis makes it urgent to reverse this grotesque injustice and bring in Energy For All – a free band of energy to make sure that everyone can keep warm and keep the lights on.

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

While we welcome new measures of support, these are only short-term sticking plasters. To help tackle soaring energy bills and cold homes we need a longer-term, large scale home retrofit programme. This must include a green skills strategy to ensure there are enough people to do the work across all trades. We also need more support for energy advice services. CSE’s energy advice line calls are at an all-time high, and it’s going to be another tough winter for so many people unless urgent action is taken.

Rhiannon Hughes, South West London Law Centres, commented:

Some people on prepayment meters do not have the funds to turn their gas on. South West London Law Centres provides debt advice to help people reduce debts and access additional funds but there needs to be permanent solutions.

The current system is forcing people into crisis and although advice for fuel bills is critical – a better solution is needed. The high cost of services charges on gas prepayment meters mean that people like my uncle disconnect.

My uncle who is partially sighted, a pensioner and works can not afford to put any money on his prepayment meter, when he does have a bit more cash he tries to turn on his gas for heating but because the service charges have been piling up, it has caused so much debt on the meter that any money he puts on will be swallowed in debt repayment, not on heating.

It is already an unjust situation that is due to get worse so needs urgent reform.

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

The NPC has also written to Ofgem and the Chancellor asking them to work together to urgently look at immediate and long term measures to help those struggling with fast rising energy bills. We are calling for a number of specific actions before the price cap rises again in October to a shocking average of £2,800 a year.

NOTES

Full text of the letter to Jonathan Brearley, Chief Executive of Ofgem, also copied to the Secretary of State for Business, Energy and Industrial Strategy and the Chair of the Commons BEIS Committee:

The End Fuel Poverty Coalition would like to thank you for your appearance at the Commons BEIS Committee which sparked the financial support outlined by the Chancellor on 26 May 2022.

With a new political will to address the challenge of the millions of homes in fuel poverty, we would also request that Ofgem reviews the areas where the regulator could better support households across the country.

First, we would urge you to abandon plans for a quarterly price cap and instead move to a three-times a year (at most) model. This would ensure more flexibility in the cap, but also mitigate a devastating January price increase, as predicted by Cornwall Insight, in the middle of winter.

Second, we need to see reform of the price cap itself – especially so that it does more to help those on pre-payment meters and is extended to cover people off-gas and on heat networks.

More broadly, we also need to see Ofgem lead the way to ensure better support for vulnerable customers, including a package of additional support from suppliers for this winter.

This support should be similar in scope to that introduced during the pandemic, but enhanced in its ambition given the numbers of people expected to be in fuel poverty this winter. We would also welcome Ofgem’s views on how it can ensure no-one is disconnected this winter or abandoned by their supplier.

We also need urgent reform of the regressive and punitive standing charges regime that penalises the most vulnerable. These charges should be reduced. In addition, customers should no longer be penalised for the failures in the energy market, which we will highlight as an issue to the Treasury.

Finally, in the longer-term we would request that Ofgem reviews the operation of the price cap and works with consumer groups to set out reforms to the market that would offer more support to those in fuel poverty. This could include the introduction of a price ceiling (i.e. a “super cap” set at current levels over which consumers will not have to pay for fair usage) and the introduction of a social tariff or “energy for all allowance.”

We would welcome the opportunity to speak to you about these issues at a future meeting of the End Fuel Poverty Coalition.

Energy saving measures could save billions

An expert report has revealed how investing now in energy saving solutions could save the UK Government hundreds of billions in ‘sticking plaster’ solutions this decade.

Experts calculate that the UK government has spent £37bn this year to stand still on soaring costs of living, without meaningful investment in solutions which could permanently reduce bills. With estimates that fossil fuel prices will remain at an unprecedented level until at least 2030, E3G is calling for long-term energy saving solutions to save the Treasury from needing to spend hundreds of billions in ‘sticking plaster’ solutions.

Households living in the least efficient homes will pay around £916 more per year on energy bills when the energy price cap rises to £2,800. If everyone living in homes below Energy Performance Certificate (EPC) band C were improved to EPC C today, the aggregate saving would be £10.6bn each year.

Independent climate and energy think tank E3G has set out a package of measures to make rapid near-term progress, saving families an average of between £450 – over £1,000 per year.

As well as energy efficiency measures in homes, key measures suggested also include launching an Olympic-style skills and training programme for the retrofit supply chain and making independent energy and retrofit advice readily available to people across the country to share what help is available.

Juliet Phillips, Senior Policy Advisor at E3G and lead author of the report says:

With fossil fuel prices expected to remain sky high until at least 2030, the government must decide whether it wants to go on spending £37bn per year just to stand still – or to invest now in permanent solutions for lower bills, which will pay off multiple times over in the years ahead. Until the structural drivers of the cost of living crisis are addressed, including the cold and leaky nature of our housing, the government could be left spending tens of billions on emergency financial support packages each year.

Stew Horne, head of policy at Energy Saving Trust said:

E3G’s latest report highlights the steps the UK Government should take if it is to help people across the country reduce household energy usage and bills for the long-term. Time is ticking away to make the much-needed improvements to the energy efficiency of UK homes that UK government has committed to this decade. Energy Saving Trust particularly welcomes the report’s proposals for bespoke advice and support for consumers as this will play a vital role in helping make the changes that will permanently reduce the energy required to heat their homes and keep energy costs down.