Tag: Budget

Revealed: The streets where nearly everyone is in fuel poverty

Areas of the Midlands and Yorkshire have topped an unwelcome league table of fuel poverty.

New data projections from the End Fuel Poverty Coalition reveal that the fuel poverty crisis gripping the country is affecting some areas worse than others.

With the increase in energy bills coming into effect on 1 April 2022, over 6.3m households (27% of homes in England) will wake up in fuel poverty that morning.

In parts of the Bushbury South and Low Hill area of Wolverhampton, the situation is even more severe where 88% of households will be in fuel poverty from 1 April.

But Wolverhampton, which was recognised in the Government’s Levelling Up white paper, is not alone in seeing the vast majority of homes in fuel poverty.

The Washwood Heath area of Birmingham, the Castle & Priory ward of Dudley, the Shelton area of Stoke and the area near Smethwick Galton Bridge in Sandwell will also all see fuel poverty levels soar to over 80% of homes.

Just outside the 80% barrier, come parts of Smallbridge & Wardleworth in Rochdale, Bramley in Leeds, Richmond in Sheffield, Derwent in Derby and Nechells in Birmingham.

While these areas are among the highest levels of fuel poverty in the country, in terms of Parliamentary constituencies Birmingham Hodge Hill (55% of households in fuel poverty from 1 April 2022) tops the league table.

This is followed by Barking (48%), Stoke on Trent Central (47%), Wolverhampton South East (47%), Walthamstow (47%) and Birmingham Yardley (47%).

And in a blow to the Government’s levelling up agenda, “red wall” Tory MPs will be feeling the heat from constituents forced into fuel poverty by prices which were spiralling before the Russian invasion of Ukraine.

In Stoke Central, where Conservative MP Jo Gideon was elected, the number of homes in fuel poverty has doubled from 9,275 in 2019 to an estimated 18,463 in 2022.

Fellow Tories in Wolverhampton North East (Jane Stevenson MP), Walsall North (Eddie Hughes MP), Stoke on Trent North (Jonathan Gullis MP) and West Bromwich East (Nicola Richards MP) have also seen the numbers of constituents in fuel poverty rapidly increase since the 2019 election. [4]

Rachael Williamson, Head of Policy at Chartered Institute of Housing, said:

The Government’s ambition to ‘level up’ is being undermined by its inaction in meaningfully tackling fuel poverty. We need clear, long-term plans to tackle homes with poor energy efficiency, especially in the private sector, and financial support to address the gap in the meantime. Without this we will see many more households and families plunged into poverty. This was an issue before the invasion of Ukraine but is quickly becoming a real crisis.

Barking & Dagenham remains the local authority with the highest levels of fuel poverty after 1 April 2022 (44.7% of households) and while the West Midlands and Yorkshire continue to dominate the top ten, it is not just cities that suffer.

Around a third of households in market town Kings Lynn and rural West Norfolk will be in fuel poverty (33.8%), as will similar numbers in North East Lincolnshire (33.2%), Herefordshire (32.9%) and Shropshire (32.8%).

On the Chancellor’s home turf, 14,000 households in his constituency of Richmond (Yorks) will be in fuel poverty, with the numbers in wider Richmondshire also among the worst in rural England (32.3%).

Paul Dixon, Rural Evidence Manager at Action with Communities in Rural England, commented:

Rural residents have some of the hardest to heat homes. Additionally, about a million households rely on heating oil which has increased in price by more than three times since the same period last year. Government must recognise and address the particular vulnerabilities of people in this situation.

William Baker, of Solutions to Tackle Energy Poverty, said:

Local authorities will need to step up to tackle the tsunami of fuel poverty that will hit them over the next few months. We urge them to take coordinated action across local services, particularly through improving energy efficiency standards, providing income maximisation advice and protecting private rented sector tenants. And the Government must provide them with the resources to do this.

A spokesperson for the End Fuel Poverty Coalition, said:

Energy prices were rocketing before the Russian invasion of Ukraine as this data shows. Since 2019 households across the country have been feeling the squeeze as the implications of the  Government’s inaction on fuel poverty have been realised.

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

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

The Government has talked about this for long enough, but fails to match words with action – the Chancellor’s attempt to provide support for people through a “loans dressed up as grants” scheme is a prime example of this.

Ruth London from Fuel Poverty Action added:

Bad housing, profiteering on energy, and government foot dragging on the urgent switch to renewable energy have combined to create a disaster for millions of people.

The icing on the cake is that the pricing system discriminates – through high standing charges and through prepayment meters, poorer households in areas like these pay more per unit than households in better off regions. Just how much injustice and deprivation do they think people will put up with?

Jo Gilbert from Butterfly Energy said:

It’s no longer a question of heating or eating, sadly a large proportion of people can no longer afford to do either. The government needs to stop knee jerk responses and to take long term sustainable action, Rebates on council tax and £200 loans will not remedy this crisis.

Jess Ralston an analyst at the Energy & Climate Intelligence Unit, commented:

Energy efficiency reduces gas demand, shrinking our bills and weaning us further off gas from places like Russia. For the families in this report – many living in places that voted in the Conservatives in levelling up areas at the last election – better insulation is a lifeline against rocketing bills. For our energy system, it’s a shield against volatile fossil fuel supply and prices. If there was ever a time for energy efficiency, it’s now; insulation is the clear winner for lowering bills and improving energy security in the short term.

Ramping up existing schemes that deliver efficiency, like the Energy Company Obligation, is one way to level up homes while levelling down bills. Other policies to get our housing on track for net zero like the boiler upgrade scheme, that gives grants to swap out gas boilers for cleaner alternatives that could be hundreds of pounds cheaper to run this year, could help to isolate British families from the impacts of surging fossil fuels. It really is a no brainer.

For more on the methodology used in this news story, read more here.

Image: Shutterstock

Charities unite in call for funding to tackle energy bill crisis

An alliance of 27 major charities have today written to the Prime Minister and Chancellor, calling for urgent action to tackle the energy bill crisis, including boosting insulation funding.

The charities, which include Save the Children, Age UK, WWF, Green Alliance, Faith for the Climate, Tearfund and Greenpeace, are calling for emergency funding to support the most vulnerable and for insulation and clean energy funding to be increased to help wean the UK off expensive gas.

Without urgent government action the energy price cap could be increased by £600 in April, driven by the surging price of gas on the international markets, taking an average energy bill to around £2000.

The charities estimate that fuel poverty could increase by 50%, from 4 to 6 million households across the UK. There are fears this will lead to households choosing between heating and eating, an increase in the number of people dying in cold homes and a greater burden on the NHS, when it is already under great strain.

The charities remind the Prime Minister that a cut in support for making homes energy efficient after the last surge in energy bills in 2013 left households far more vulnerable to surging gas prices.

As a result of the Energy Company Obligation levy being cut in half and the Warm Front programme for the fuel poor being abolished, millions of British homes have not been insulated.  The cuts led to a 90% cut in loft and cavity wall insulation measures and half of those in the insulation industry lost their jobs. The charities warn that insulation rates have still not recovered and the same mistake must not be made today.

Juliet Phillips of the climate change think tank E3G said:

The Energy Company Obligation is the biggest programme the government has to insulate the homes of the fuel poor. Any damage to this levy would make these households more dependent upon gas, entrenching the crisis further.

Improving the efficiency of the worst performing UK homes could provide bill savings of over £500 every year per household upgraded, an aggregate saving of around £8bn

Investing in UK green energy and technologies like heat pumps would also help end the UK’s reliance on fossil gas. Renewables have helped to keep electricity prices from soaring as much as gas prices, as cheaper wind and solar cushion the increased expense of using gas to generate electricity.

The charities are also calling for emergency support for the most vulnerable, funded in part by a windfall tax on the fossil fuel industry, who are due to make profits up to ten times higher this financial year due to the surge in wholesale prices.

They are recommending expanding the Warm Homes Discount to ensure the majority of the expected rise in energy bills is covered for the most vulnerable households, for example those on universal credit and providing a one-off payment to those eligible for Cold Weather Payments.

The charities are also joining calls for legacy costs for renewables to be moved off power bills, to be paid for by the Exchequer instead, whilst leaving the Energy Company Obligation on the energy bill as a critical levy to help the fuel poor. They calculate that this would save households an additional £100 a year.

The charities also want the Government to fulfil its manifesto commitment to spend £6 billion on making homes more energy efficient. There is a £2 billion black hole in the funding committed after the Spending Review which they say must be filled, most of which was meant to go to the fuel poor.

Two thirds of households having no access in the UK to any insulation grant scheme. The charities want a new insulation grant programme set up to replace the failed Green Homes Grant which anyone can access.

The charities also call on the Government to ramp up the heat pump grant programme due to launch in April with ten times more funding, boosting it from £400m to a £4 billion programme, to accelerate the transition away from fossil fuel boilers.

William Baker of Solutions to Tackle Energy Poverty said:

The Energy Company Obligation is central to the Government’s legal duty to abolish fuel poverty by 2030. Scrapping the programme would show the Government does not take its statutory responsibilities seriously. It would condemn many fuel poor households to unaffordable fuel bills, ill health and in the worst cases death as a result of living in dangerously cold, unhealthy homes. The government must take urgent action to address the current crisis of rocketing fuel bills and expand its programmes to upgrade the insulation and heating systems of our notoriously leaky homes so that we are less dependent on volatile gas markets.

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

The cost of living crisis, fuelled by soaring energy prices, is totally unsustainable and is hitting the lowest income families the hardest. Parents we work with tell us that they’re struggling to meet basic needs, leaving them having to make impossible choices between heating their homes and buying clothes for their children. And children are paying the price. Children deserve a fair and green future, and need a concrete plan from the UK Government that tackles both the cost-of-living and climate crises.

Dr Doug Parr, Policy Director at Greenpeace UK said:

The twin imperatives of a gas price crisis and the climate crisis mean we need to get off fossil fuels as fast as we can whilst protecting people on low incomes. That means we need to see short-term support for fuel poor families and long term support for energy efficiency and cheap renewables. A windfall tax on oil and gas companies would be a fair way to help finance the transition as we exit fossil fuel production in line with advice from leading experts at the International Energy Agency.

A spokesperson for the End Fuel Poverty Coalition, which was also a signatory to the letter, commented:

After years of tireless campaigning by health, anti-poverty and environmental charities, trade unions and researchers, politicians are finally waking up to the tragedy of fuel poverty in the country.

Fuel poverty is a public health and social crisis but can only be solved by economic measures and the Government must do everything possible to help people in crisis now while investing in energy efficiency programmes to fix the long-term problems.

The full letter is available to read online.

Bleak budget blasted by fuel poverty campaigners

Campaigners have reacted to the Government’s “bleak” budget which failed to help people facing fuel poverty this winter.

A spokesperson for the End Fuel Poverty Coalition commented:

This is a budget that has plenty for champagne swilling, jet-set bankers. But there is nothing for people facing the choice between heating and eating this winter.

The Chancellor’s cold words for people in fuel poverty will be heard in millions of households across the country.

Coming on the back of the pitiful Winter Support Fund, revelations that funding is not helping those most in need and missing billions from the promised support for energy efficiency improvements, this is a bleak budget from the Government.

Adam Scorer, Chief Executive of Coalition members, National Energy Action, tweeted:

Campaigners at Scope, tweeted:

Ruth London from Fuel Poverty Action added:

Zero on fuel poverty, and zero for the climate – two sides of the same filthy coin.

This budget was a chance to finally fund repair and insulation of the  UK’s cold damp housing.

Instead of domestic warmth and health, we got more, polluting and domestic flights.

The Centre for Sustainable Energy’s response to the Heat and Buildings Strategy is also now available online.

A petition for the public to sign is now available on Action Storm: https://actionstorm.org/petitions/fuel-poverty-crisis

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: https://www.endfuelpoverty.org.uk/wp-content/uploads/End-Fuel-Poverty-Coalition-CSR-Submission-FINAL.pdf

Budget a missed opportunity to end fuel poverty

The End Fuel Poverty Coalition has responded to the first Budget delivered by Chancellor Rt. Hon. Rishi Sunak MP.

A spokesperson for the Coalition commented:

Despite the exceptional circumstances of today’s Budget, the lack of any proposed measures to boost domestic energy efficiency and end fuel poverty is nothing but an insult to the millions of ordinary people living in cold homes.

We urge the government to rectify this urgently and take concrete steps to end fuel poverty at the earliest opportunity.

The Coalition urges the government to publish its response to the Fuel Poverty Strategy Review, set out the funding and eligibility criteria for the proposed Home Upgrade Grants and to put in motion the social housing decarbonisation programme at the earliest opportunity.

It must also guarantee the extension and expansion of the Warm Home Discount programme as a matter of urgency.

Two million households could miss out on vital lifeline

A new report released today warns a scheme which provides a payment of £140 towards energy bills – the Warm Home Discount (WHD) – could end in March 2021, despite it providing a lifeline to millions of pensioners across Great Britain.

The authors also highlight that up to two million working age households across Great Britain could already be missing out on the energy rebate each winter, leading to difficulties keeping homes at a safe temperature.

National Energy Action (NEA) and Fair By Design (FBD) have teamed up to call for an extension and expansion of the scheme to ensure all eligible low income working age households receive the rebate automatically without needing to apply each year to their supplier.

Peter Smith, Director of Policy and Research at NEA commented:

For nine years the Warm Home Discount scheme has been hugely successful in ensuring that the most vulnerable pensioners receive vital rebates automatically and are better able to afford to keep their homes adequately warm over winter.

It’s crucial this continues. Legislative powers were also passed in Parliament three years ago which allow the Government and suppliers to provide this support automatically to working age households too but up to two million Brits  are missing out on £140 energy rebates each year.

This is despite them being eligible for support and paying for the cost of the policy through their energy bills.

NEA and FBD say most poorer customers miss out each year because the Warm Home Discount is poorly advertised which means many are unaware of its existence. And even when customers are aware and apply, their applications can be unsuccessful because there is only a finite amount of money available for the limited annual budget. Smaller suppliers are also not required to provide the WHD meaning some customers switch suppliers in order to benefit from a cheaper deal but end up losing their entitlement to the £140 rebate making them worse off.

Carl Packman, Head of Corporate Engagement at Fair By Design said:

Many low income households are already compelled to make a choice nobody should have to make: to heat or to eat.  At the same time many pay a poverty premium for the way they pay for household heat, which makes that desperate situation even worse.

The Warm Home Discount is a lifeline for many struggling to heat their homes, to levels many of us take for granted. But there is a risk the scheme will end in March 2021.

Putting £140 back in the pockets of millions of working age people will mean they pay a fair price for their energy. It mustn’t be underestimated just how valuable this measure will be.

NEA and FBD are calling for Government to extend and expand the Warm Home Discount scheme for at least three years and ensure smaller suppliers are also required to provide the WHD. Current powers within the Digital Economy Act allow Government to ensure that all those eligible for the WHD rebate actually receive it without reducing benefits for low income pensioner recipients who are most risk of dying over winter.

WHD Industry Initiatives also fund the work of community and voluntary organisations to deliver assistance with debt and energy advice. Without a commitment to the extension of this element of the scheme NEA and FBD have warned that this work will cease.

NEA and FBD’s full briefing highlights how this can be achieved in a cost neutral way. Smith concludes:

We hope the UK Government, Ofgem, parliamentarians, and energy companies work together  in 2020 to ensure that the scheme continues and expands after 2021.