News

The End Fuel Poverty Coalition (EFPC) has written to Ofgem, the government regulator for electricity and gas markets in Great Britain, calling for the Safeguard Tariff to be preserved and extended.

Under the Safeguard Tariff, customers on prepayment meters or in receipt of the Warm Home Discount (WHD) are safeguarded as to how much they pay for their energy. This means there is a price cap at which suppliers can charge customers for their gas and electricity. More information about the Safeguard Tariff is available here.

Vulnerable customers are less likely to switch suppliers or tariffs. In 2016, the Competition and Markets Authority (CMA) reported that those on a low income, over the age of 65, on the Priority Services Register or with a disability are less likely to have switched supplier in the last 3 years. These consumers are therefore more likely to be on the highest tariffs and paying more than they should for their gas and electricity.

The Coalition advocates that the current Safeguard Tariff is expanded and is very concerned it will be prematurely withdrawn. Currently the Tariff is only available for those households in receipt of the WHD, which is made up of 2 groups; the ‘Core Group’, which largely consists of poorer pensioners, and the ‘Broader Group’ consisting of a small number of households who apply. This means many households who are of working age, in the lowest income deciles and burdened by high living costs miss out on the vital support provided.

Failure to extend and preserve the Safeguard Tariff could leave many low-income households exposed to increases in their energy bills, in turn creating anxiety over finances and leading to the adoption of unsafe coping mechanisms.

You can read the Coalition’s letter to Dermot Nolan, Chief Executive of Ofgem, here.

As the general election of 8th June approaches closer, the End Fuel Poverty Coalition makes five key recommendations to the parties, and to the government that is democratically elected.

Millions of people cannot afford to heat and power their homes. Millions are suffering ill-health, stress and anxiety from unaffordable fuel bills, which in turn can lead to social isolation and reduced educational attainment. The End Fuel Poverty Coalition believes that everybody has the right to a warm, dry home that they can afford to heat and power. We call on the next Government to take action to end fuel poverty and thereby improve people’s health and quality of life, reduce the cost of living, create jobs and cut carbon emissions.

1. Improve the homes of all low income households to the energy standards of homes built today (Energy Performance Certificate (EPC) Band C) by 2025 and make this a central element of its programme to address the lack of affordable housing in this country. This will result in dramatic improvements in comfort, health and quality of life and energy bill affordability for occupants.

2. Make improving the energy standards of our homes a central priority for investment in the country’s infrastructure and secure long-term funding for this. Improving the energy efficiency of Britain’s homes could cut household bills by around £370 a year, while reducing our reliance on gas imports by a quarter. It would also boost economic growth, create jobs in every constituency of the country and reduce pressure on health and social care services

3. Require fuel companies to provide bill rebates for all low income consumers and stop companies charging unfair prices to consumers who pay by prepayment meter and who have not benefited from energy market competition.

4. Take immediate action to improve the standards of private rented homes. This requires tough regulation – and effective enforcement of regulation – to outlaw dangerously cold homes from 2018 onwards. This should form part of a wider programme to improve tenants’ rights and security of tenure.

5. Implement a cross-departmental Fuel Poverty Strategy to end fuel poverty that sets targets for all relevant Government departments. In particular, this should address joint action to tackle cold-related ill-health, employment and income policies to make sure people have sufficient income to afford energy and other essential services and devolving power and resources to local authorities so that they can play a central role in delivering the Strategy.

The End Fuel Poverty Coalition’s recommendations can be downloaded here – Key recommendations to government May 2017.

This Friday 17th February is Fuel Poverty Awareness Day, a nationally recognised day to promote the issue of fuel poverty and the importance of ensuring vulnerable people are warm in their homes.

#FuelPovertyAwarenessDay is coordinated by our EFPC member, National Energy Action and intends to increase awareness of fuel poverty with a shocking 4.5 million UK households currently unable to live in a warm, dry home.

Support the cause by signing up to the Thunderclap here and help ensure that #FuelPovertyAwarenessDay reaches over 1 million people.

To coincide with #FuelPovertyAwarenessDay NEA is running The Nation’s Biggest Housewarming, many supporting organisations  holding events, issuing messages of support, or holding bake sales. Find out how you and your organisation can get involved here.

Keep your eyes peeled for a range of new resources released on the day, including a new Steps to Affordable Warmth video resource, which provides hints and tips on how to afford to stay warm and healthy at home, and is designed to be shared at community events, with clients or publicised online.

Find out more about the day here www.nea.org.uk/campaigns-policy/fuel-poverty-awareness-day

Fuel Poverty Action, an EFPC member, are continuing to press for the abolition of extra charges for energy customers using prepayment meters.

In October the Competition and Markets Authority (CMA) announced that it would impose a cap on costs for prepayment customers that would reduce bills by £75 a year. While a reduction is of course welcome, £75 is certainly not enough.

Prepayment meter users pay on average £300 more than customers on direct debit and are usually the worst off customers. Fuel Poverty Action, in collaboration with a number of organisations, are campaigning for  parity on energy costs, regardless of the method of payment.

So back on 11th November FPA and friends took action and went to the CMA directly to hand in their response, held in in a tiny doll’s cap, to highlight the insult of the CMA’s insufficient proposal.

Passing on the cap containing a scroll with the response, Ruth London of FPA told Project Director Erika Lewis,

“Energy companies’ license conditions forbid discrimination against users of PPMs, the CMA’s own Roger Witcombe has declared, ‘It is unacceptable that 4 million households on prepayment meters, many of them vulnerable, face higher bills than other energy customers,’ and yet the CMA’s proposals will perpetuate this injustice.”

Erika Lewis, for the CMA, agreed that the proposals are not set in stone and promised that they would take seriously the evidence provided.

To find out more and read Fuel Poverty Action’s statement on the CMA announcement please go to www.fuelpovertyaction.org.uk

NEA’s Warm Homes Campaign aims to raise awareness of the importance of being able to live in a warm, comfortable home and illustrate how to improve access to equal life chances. This year, NEA is teaming up with I, Daniel Blake star Dave Johns who is backing the campaign.

“It is a complete scandal that people die because they can’t afford to heat their homes. I, Daniel Blake shows the tragic circumstances and daily dilemma of ‘heating or eating’ faced by many thousands of people in Britain today. I’m backing NEA’s Warm Homes Campaign to highlight what help’s available to cope with rising energy bills as winter takes hold and demand more support from Government.” Dave Johns

The campaign highlights that around four million UK households are still unable to access equal life chances because they live in a cold, damp home. These life chances are further compromised depending on the tenure of the home our baby will be born into.

New research by NEA shows that energy efficiency problems such as damp and unhealthily low temperatures are more prevalent in privately rented homes such as shared properties, bedsits and hostels. In a recent survey over two thirds said residents cannot afford to heat their room or shared space adequately. A similar number said the worst rental properties have such inadequate heating and insulation that it is impossible to keep them warm and free from damp.

The charity is warning that a baby born today and living in cold housing is more than twice as likely to suffer from breathing problems including asthma and bronchitis and three times as likely to suffer from wheezing and respiratory illness. As she grows up in the same housing conditions her chances of suffering mental health problems are higher – one in four adolescents living in a cold home are at risk of multiple mental health problems and evidence proves that living in fuel poverty impacts on educational attainment.

Find out more about the campaign here and its key asks here.

For updates on the campaign follow NEA on twitter @NEA_UKCharity #WarmHomesCampaign