Energy bills crisis continues on April Fuels Day

Every household in the country will see their energy bills increase by at least £67 a month from 1 April as the energy bills crisis continues.

Dubbed April Fuels Day by campaigners, who are staging a mass lobby of MPs at over 70 locations across the country on Saturday, the increase in bills is caused by the Energy Bills Support Scheme coming to an end.

Figures from the Warm This Winter campaign have revealed that more than a quarter of people (29%) are already in debt to their energy companies even before the price rise. With Debt Justice calculating that those on prepayment meters have combined debts of £1bn.

An investigation by Bloomberg has uncovered that three energy firms have added half a billion pounds to energy bills by manipulating the electricity market by powering down their generators at peak times, only to then demand a much higher price from the Grid.

Figures from National Energy Action also reveals that standing charges, which customers pay every day to access the grid regardless of use, will hit a new high from 1 April – up 64%. It means that almost half (41%) of what those in the poorest households spend on energy will now go solely on these daily fees.

A spokesperson for the End Fuel Poverty Coalition commented:

“People are being taken for fools. The Government is saying that it is providing support to households, but the reality is that everyone’s bills are going up.

“Even when market conditions return to energy bills later in 2023, people will still be paying double for their energy than they were in 2020.

“Meanwhile, every week we learn about new ways the energy firms are profiting from the misery of households. The latest revelations about energy firms’ excesses show just how broken Britain’s energy system is.

“This week was supposed to be the Government’s big energy security announcement, but instead we got a dump of thousands of pages of policy and data with no real substance.”

Tessa Khan, executive director of Uplift, which is part of the Warm This Winter campaign added:

“The government has finally recognised that Britain’s energy system is broken but, by its own admission, its plans this week won’t do anything to lower our energy bills.

“Its rehashed policies on energy efficiency fall miles short of the national programme of insulation and home upgrades that is needed, and it continues to deny communities access to onshore wind, which is among the cheapest energy sources around and a resource we have in abundance.”

“Instead Ministers are handing billions in subsidies to oil and gas developments that won’t lower bills or boost UK energy security, as most of its oil for export. It’s beyond time that this government delivered real policies that address the big issues affecting people’s lives, not least eye-watering energy bills.”

Rising energy debt creates mental health crisis for households

Energy debt is causing mental health anguish for millions, with Brits now facing a summer of misery in an attempt to get back into the black before next winter takes hold, according to new research. [1]  

The research commissioned by the Warm This Winter campaign found that more than a quarter of people (29%) are currently in debt to their energy companies. 

Over one in ten (12%) vulnerable households, such as the elderly and disabled, are now sitting on an energy bill debt of at least £250 each. A fifth (18%) of prepayment meter customers owe upwards of £250 each, with many owing more than £500. 

More than half (54%) of people in energy debt are worried that they won’t be able to save enough over the summer months to pay off the accrued debt, rising to 70% of lower income households. 

Close to a third of respondents (30%) in energy debt are experiencing anxiety as a result and 12% say worrying about it is now making them ill. Over a fifth (22%) of vulnerable householders are spending sleepless nights thinking about it.

To combat this, one third (33%) of people in energy debt are now being forced to sacrifice essentials, including not keeping up with household maintenance (18%) and skipping meals (17%). 

One in ten (12%) say they will have to use other forms of debt, such as a credit card or overdraft to help pay off their energy bills.

The Chancellor’s energy price cap extension has done little to alleviate consumers’ concerns, with 56% of Britons saying they are unhappy or very unhappy with the level of support with energy bills which will be available for energy bills from 1st April.

People affected by energy debt should initially contact their energy firm or Citizens Advice for help. Those concerned for their mental health can contact Mind.

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

Combined household energy debt will top £2.7bn by the end of June this year and the Government needs to bring together industry and charities to find a solution to the problem.

People will be unable to repay this staggering amount and rather than passing on bad debt to other bill payers, as the energy firms suggest, the Government should use targeted debt relief to wipe out part or all of the energy debt.

This will help the most vulnerable move out of fuel poverty and boost the spending power of hard-pressed consumers.

On Saturday 1st April 2023, a mass lobby of politicians will see people around the country come together to demand change. Over 70 events have been arranged nationwide, including demonstrations and meetings with local MPs to highlight the breadth of public concern about the energy crisis. 

Heidi Chow, executive director of Debt Justice, said: 

Energy debt is having a devastating effect on millions of households who can no longer afford to properly heat their homes, cook meals, or operate medical equipment. 

By ignoring the problem of energy debt the government is needlessly prolonging the anxiety. It is time for them to get their heads out of the sand and tackle this unpayable debt in a fair way. 

In March, campaigners from Warm This Winter delivered a 400,000-strong petition to Number 10 Downing Street calling for the government to take decisive action now to fix our broken energy system, which has left seven million UK households in fuel poverty this winter. 

Tessa Khan, executive director of Uplift, added:

This government has provided temporary relief for some over the winter, but utterly failed to fix the core problem facing the UK, which is the unaffordable price of energy.

Household bills are still double what they were two years ago and high energy costs are making food and other goods more expensive.

It is beyond time that the government took real action to permanently lower energy costs, which means rolling out support to upgrade homes and accelerating the development of cheap renewable energy, both of which have huge public support.

Instead of handing billions of pounds in subsidies to profitable oil and gas companies, this government should be 100% focused on helping ordinary households and businesses.

To find out more and get involved, visit https://www.warmthiswinter.org.uk/mass-lobby.

ENDS

[1] Researchers interviewed 2,196 people between 20th and 21st March 2023. Results were weighted to be representative of the GB population. GB 18+ population is 51,435,642 (ONS) with around 4.5m experiencing anxiety as a result of energy debt.

Energy bills still set to rise despite Budget

Energy bills are calculated to rise by £285 a year for the coming financial year 2023/24 according to ECIU.

This is despite a Government u-turn on the Energy Price Guarantee which was due to increase bills even further from 1 April.

Meanwhile, calculations show that combined household energy debt could exceed £2.7bn by the end of June 2023.

Other inequalities in the energy market remain with customers paying by standard credit (i.e. paying by cash, cheque or bank transfer) will pay £202 a year more than those on direct debit or pre-payment meter.

Meanwhile some regions, such as Merseyside and North Wales will pay 6.7% more for the electricity than others, such as those in the East Midlands.

A spokesperson for the End Fuel Poverty Coalition commented:

“Despite government support and falling wholesale prices, every household will pay more for their energy this coming financial year than they do at the moment. That’s due to how the energy pricing system works and expected reduced levels of support from the Government.

“This is coupled with soaring food prices and transport costs and no end in sight to the cost of living crisis.

“We need further action to provide energy debt relief to get households onto even keel and long term changes to Britain’s broken energy system. This includes tariff reform and rapid improvements to energy efficiency of housing to ensure we never again see an energy bills crisis.”

Tessa Khan from Uplift, which is part of the Warm This Winter campaign, commented:

“If the Chancellor wants to boost growth he needed to tackle the energy crisis for the long term and he hasn’t.

“Energy bills will still rise, albeit by not quite as much, meaning millions of households will continue to live in fuel poverty. From July, the average household is still set to pay double what they were in 2021.

“Crucially, there is no long term plan here to fix the UK’s broken energy system for good: no support from upgrading homes, nothing to accelerate renewables to shift the UK away from volatile fossil fuels as is happening in other countries.

“While the Chancellor might like to think the energy crisis is over, for so many households and businesses unaffordable energy bills are still a painful reality.”

National Energy Action predict that the number of households in fuel poverty will grow to 7.5m as a result of the Budget announcement.

Graham Duxbury, Chief Executive of Groundwork UK, said:

“We are glad to see the government extending support with energy bills for a further three months and taking steps to tackle the injustice of higher costs for people on pre-payment meters.

“However, more needs to be done to ensure everyone is able to access the energy they need to stay warm and well.  Even with government support in place, our Green Doctor energy advisors have been shocked by the level of hardship households have experienced this winter.

“To avoid people suffering unnecessarily in the winters to come, we need a radical plan to eliminate fuel poverty, through increasing the energy efficiency of homes, providing better coordinated advice to the most vulnerable energy users, and investing in the skills and jobs we need to transform our energy infrastructure.

“Doing this is vital to preventing the worst effects of climate change, reducing health inequalities and creating more prosperous communities.”

Chartered Institute of Housing (CIH) chief executive, Gavin Smart said:

“We’re pleased to see the government taking action to support people with high energy bills, by bringing charges for pre-payment meters in line with direct debit customers and extending the current Energy Price Guarantee at the current rate for a further three months. CIH called for this as part of the End Fuel Poverty Coalition. We would however have liked to have seen more support for energy efficiency measures, helping to tackle some of the root causes of current energy pressures.

“Housing was notable by its absence. We are disappointed that the Chancellor did not use this opportunity to restore local housing allowance to the 30th percentile, as we and others had called for. The decision to leave rates frozen at 2020 levels means the affordability gap for private renters will continue to grow, resulting in increased evictions and homelessness. We would urge government to urgently look again at this, particularly given its commitments on homelessness prevention.

“We note that various changes were announced on welfare. We await the details in this in the forthcoming White Paper and will provide further briefing for members on Budget announcements over the coming days.”

Experts rally to support calls for better energy bill support

Charities and the energy sector have joined calls from consumer rights champion Martin Lewis for the Government to provide more support on energy bills from 1 April 2023.

A petition for the public to sign has now been launched by campaign group 38 Degrees.

Sign now: https://act.38degrees.org.uk/act/cancel-energy-price-hike

In a letter to the Chancellor, Lewis called for the Government to keep the energy price guarantee (EPG) at a typical £2,500 a year, rather than hiking it to £3,000 a year as currently planned.

With the Energy Bills Support Scheme ending at the same time, households will see the real cost of their bills increase by around 43% from an average bill of £2,100 this year.

Over 70 organisations have now come out in support of the call, including: Age UK, Christians Against Poverty, the End Fuel Poverty Coalition, Warm This Winter, Centre for Sustainable Energy, Energy Action Scotland, Huntington’s Disease Association, Epilepsy Action, Fairer Housing, Advice for Renters, Scope, South West London Law Centres, FareShare, Green Alliance, Joseph Rowntree Foundation, MS Society, Nesta, Sense, Leonard Cheshire and Mencap.

Energy UK, the trade association for the energy industry, has also come out in support of the call.

The letter says the planned increase in the Energy Price Guarantee (EPG) will increase bills for almost every home in the country:

This comes at the same time that the £400 energy bills support scheme comes to an end.

Yet things have changed since then, and I would ask you to urgently consider postponing that increase. This cannot wait until the Budget – in practice, energy firms will need to know much sooner if the planned rise isn’t happening on 1 April, or they are bound to have to communicate to customers that it is coming.

This decision to increase prices was made at a time when wholesale rates were looking to be far higher than they are now.

In fact, on current predictions the EPG subsidy may well only be needed from April to July. After that, the underlying price cap currently looks like it may be cheaper than even the current EPG rate of £2,500 a year for a typical household.

This means the provisioned Government expenditure on the energy subsidy will be billions less than expected when the plans were made, giving significant headroom to enable a postponement. Plus, maintaining a lower EPG will also help reduce inflation.

In real terms, the package of support for the most vulnerable households in 2023/24 risks being even less than this winter when there were 9m people living in cold damp homes.

Failure to act was described by Martin Lewis as a “national act of self-harm.”

Energy firms pre-payment response to Minister an insult to victims

Energy firms have only provided “half the picture” to the Secretary of State for Energy and Net Zero after the Government asked all suppliers to set out how they are supporting their customers, how many warrants to forcefully enter peoples’ homes they have applied for and how they will make up for any wrongdoing.

Data from the Warm This Winter campaign suggests that as many as two-thirds of pre-payment meter households will contain elderly people, young children or those with a disability or long term health condition.

A spokesperson for the End Fuel Poverty Coalition commented:

The energy firms are trying to pull the wool over our eyes yet again and have failed to comply with the Government’s reasonable demand for information and details of compensation they will offer wronged consumers. This is an insult to the victims of the pre-payment meters scandal.

The truth is that they have invested time, money and resources in securing almost a million court warrants against households since 2020. Even if only a fraction of those are enforced this is still too many.  [1]

Every one of those enforcements involves the energy firm breaking into someone’s home to impose on them a pre-payment meter which is more expensive for that household than direct debit. They will also charge the household for the installation.

Over the last three years, figures suggest that those on pre-payment meters may have paid hundreds of pounds more per household than other customers. [2]

Advice received by the Coalition has highlighted four areas where there might be reason for further compensation. These are in relation to possible breaches of the European Convention on Human Rights (articles 6 and 8), the Equality Act, trespass rules and breaches of contract / licence conditions. [3]

As well as compensation, campaigners have set out a five point plan which the Government must implement to address the pre-payment meter (PPM) scandal: 

  1. Move people off legacy PPMs more systematically (using data to identify PPM customers on the priority service register to move to faster smart meter rollout)
  2. Remove the premium paid by PPM and standard credit customers.
  3. Reduce standing charges for PPM customers.
  4. Address debt build up for PPM customers through a debt repayment matching scheme (funded through fines levied on energy firms for poor performance).
  5. Introduce wider reforms to make energy more affordable for PPM customers (such as introduction of a social tariff or free band of energy for all).

Calls for an inquiry into the scandal have also increased. 

In the House of Commons on Monday 6 February, Sir Robert Neill MP said that the scandal must indicate:

First, that the process itself is flawed and should not be continued and, secondly, that there must be an inquiry into not just the process itself, but the suitability of some of those who are representing the energy suppliers and Ofgem in court.

Either they gave misleading information by inadvertence or, potentially, they did so deliberately, which, on oath, amounts to perjury. That is a very serious matter which brings the court process into disrepute, and it needs to be investigated too.

ENDS

[1] Official Ministry of Justice data revealed magistrates courts granted 920,855 warrants between Jan 2020 and Dec 2022 in England and Wales. Media reports suggest around 30,000 were granted in January 2023 in England and Wales. Media report 32,000 warrants were granted in Scotland in the first ten months of 2022.

[2] This winter every PPM household overpaid by £258 on average (Citizens Advice). PPM installation cost £150 (Ofgem). Equals basic overpayment of £408.

For households who have been on a PPM before October 2022, this basic level will increase based on how many years they have been on it, but someone who has been on a PPM since 2019, has over paid around £102 compared to a DD meter (winter 2019/20 £38, winter 2020/21 £28, winter 2021/22 £32). Total of £600

2019 is the starting point because that’s when Ofgem changed the rules to make PPMs much more expensive.

[3] Indicative advice received from Leigh Day Solicitors is not a formal legal opinion, but provided to help the Coalition discuss next steps in the campaign to help victims.

Government issues cease and desist order on pre-payment meters

The Government has finally responded to the long-running campaign to ban the forced transfer of homes onto pre-payment meters.

The weekend has seen further reports about the “murky” court process which leads to warrants being issued in a kangaroo court process. And in  media briefings on Sunday, the Secretary of State, Grant Shapps MP has set out steps to tackle the issue.

These include a call for suppliers to voluntarily end forced prepayment switching.

A spokesperson for the End Fuel Poverty Coalition commented:
The Government’s cease and desist order to energy firms is a welcome move, but falls short of the full ban on the forced transfer of homes onto pre-payment meters which we need to see to protect the most vulnerable.
We also need to ensure that this voluntary approach covers the millions of people on smart meters, who must never be switched onto pre-payment mode without their active, informed consent.
Recent revelations about the role of the courts have also been left unanswered.
We need a full investigation to get to the bottom of the scandal quickly and ensure that if mistakes have been made, that those responsible are held to account and those that suffered are compensated.
The full detail of the Government plan is yet to be confirmed with Sky News reporting the Government will meet with Ofgem, energy suppliers and an advice charity next week.
Image: Shutterstock

Millions of energy customers hit by 7.6% hidden price hike

Customers on popular electricity energy tariffs saw their bills shoot up on 1 January 2023 according to new data released today. [1]

The figures, from Future Energy Associates and reported by the BBC, found average annual rises of £116 for electricity-only Economy 7 tariffs, revealing an 7.6% increase.

The result is that Economy 7 users now pay 46% more than other electricity tariffs (an average of £464 per household, per year, although many electricity-only households use significantly more than an average household). [2]

Standard credit customers also saw their electricity bills increase, while there was variation in changes of unit rates for those on direct debit and prepayment meters.

Compared to those customers on dual fuel tariffs, electricity rates are now 2% more expensive for electricity-only customers.

With 2.1m households only using electricity for their heating, many are struggling to stay warm this winter. [3]

Campaigners are now calling for the Government to extend the “alternative fuel payment” of £200 to all households on electricity only tariffs and commit to roll out reforms to the energy pricing arrangements as soon as possible.

Clement Attwood from Future Energy Associates commented:

It is a little known fact that it is actually up to the supplier to determine rates for some tariffs that are not explicitly capped by the current Energy Price Guarantee rate.

This has caused the average electrical Economy 7 tariff to be more expensive than the average active electrical constant rate tariff. We also saw a higher level of variation between dual fuel and electricity-only tariffs than we expected, which will hit those on the margins of fuel poverty the hardest.

Price variations similarly do occur by region and certain regions consistently have more expensive tariffs.

Tessa Khan, Director of Uplift which is part of the Warm This Winter campaign, commented:

As the growth of cheap UK renewables drives down the cost of generating electricity, energy firms should be lowering the rates they charge. The government needs to urgently get on with reforming energy pricing, as well as ramping up the development of homegrown renewable energy, so that consumers can benefit from cheaper, clean energy now and in winters to come.

One Economy 7 customer, Jonathan Bean from Buckinghamshire saw his Scottish Power bills jump by 13%. He commented:

I’m already paying three times more for my heating and hot water than those with gas or oil.  Now yet more price increases have come in, whilst support payments are being cut.

My son and I will literally freeze this winter, and next.

A spokesperson for the End Fuel Poverty Coalition commented:

Millions of people have been forced into deeper levels of hardship this winter due to this price hike. This will lead to people living in cold damp homes which can cause significant health complications, which only puts more pressure on the NHS.

It is completely unreasonable that those customers on Economy 7 tariffs are paying significantly more for their electricity and also receiving significantly less support with their bills from the Government.

Ruth London from Fuel Poverty Action said:

There is simply no justice in the energy pricing system. These prices for Economy 7 and the costs of all-electric homes are a scandal, along with imposition of prepayment meters, and high standing charges, and the way people on District Heating networks are left out of all protection. Not to mention ill-repaired housing, bad insulation, and damp.

Again and again the people who pay most are those who have least to begin with. We need Energy For All – it is not a luxury, it’s a right.

ENDS

Graphic: Shutterstock

[1]  Future Energy Associates are energy data specialists and software developers, providing retail tariff data and services to the government, private and third sector. Tariffscan, their tariff monitoring platform covers the whole domestic retail market across more than 50 suppliers. Updated daily, Tariffscan is provided through a dashboard and modern API giving users direct access to the latest tariff rates and insight. For more information on Future Energy Associates, visit https://www.futureenergy.associates/

The increases seen are largely due to EDF and Scottish Power raising Economy 7 rates. A standout example would be the EDF tariff where the most expensive economy 7 tariff is £598 more expensive than its equivalent constant rate electrical tariff.

3.3m households were on Economy 7 tariffs in 2021 in England alone (LG Inform / BEIS data: https://lginform.local.gov.uk/reports/lgastandard?mod-metric=3785&mod-period=2&mod-area=E92000001&mod-type=namedComparisonGroup&mod-group=AllSingleTierAndCountyLaInCountry_England ). The BBC report the figure at 2.5m.

[2] Based on ofgem’s consumption figures. Source: https://www.ofgem.gov.uk/energy-advice-households/average-gas-and-electricity-use-explained

[3] 2.1m households figure from ONS in its latest report on the census data: https://www.ons.gov.uk/peoplepopulationandcommunity/housing/articles/census2021howhomesareheatedinyourarea/2023-01-05

 

Government announce cut in financial support next winter

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

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

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

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

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

A spokesperson for the End Fuel Poverty Coalition commented:

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

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

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

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

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

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

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

Pre-payment meters pressure mounts on government and suppliers

The pressure on the Government and energy firms to ban the forced transfer of households to pre-payment meters (PPMs) is growing.

The scandal, revealed in the i paper, that energy firms have secured almost 500,000 court warrants to install these PPMs in homes of customers in debt, has led to debates and questions in the Houses of Parliament.

The House of Commons agreed to a motion put forward by Anne McLaughlin MP that:

That this House… is deeply concerned that so called self-disconnection of prepayment meter customers will see the most vulnerable in our society left without heat, light and facilities to cook and wash over the coming winter; and strongly urges the Government to outlaw self-disconnection to ensure that the poorest and most vulnerable customers are not left without basic energy provision.

Further questions from MPs across the political spectrum have challenged the legal process followed by energy firms and magistrates – with media reports likening the situation to the “Wild West.”

In response, OVO Energy has introduced a temporary ban on forcing people onto prepayment meters over Christmas – but insists the practice will resume in the new year.

The firm’s promise came in response to a demand from campaign group 38 Degrees, who recently wrote to all the UK’s major energy suppliers urging them to stop forcibly installing prepayment meters and remotely switching smart meters to prepayment mode without customer consent.

OVO also highlighted its suspension of debt recovery until at least March 2023 – meaning all customer top-ups will be used to pay for usage and standing charges only, not to pay off existing debts. But this will only be a temporary reprieve if debt collection restarts in the spring – when energy prices are once again set to rise.

Tens of thousands of people have now added their names to a 38 Degrees petition addressed to the CEOs of Britain’s major energy companies, demanding a total end to any switching without active, informed consumer consent.

People can add their name here: https://act.38degrees.org.uk/act/stop-forced-prepayment

Matthew McGregor, CEO at 38 Degrees, said:

By pledging not to push anyone into prepayment over the Christmas period, OVO is demonstrating they know just how damaging it is.

While it may be good news that struggling families won’t wake up to a prepayment meter on December 25th, they could still be facing disconnection by the backdoor come January.

If it’s not acceptable at Christmas time, why should this harmful practice be considered business as usual for the rest of the year?

Every single time these multi-billion pound companies push a prepayment meter onto someone who is struggling, they’re risking another customer facing the stark choice between feeding the meter and feeding their family.

But they have the chance to do the right thing: put people before profit by committing to end all forced transfer to prepayment.

The Chancellor, Jeremy Hunt, said in response to a question in the House of Commons from Gerald Jones MP on Tuesday about to need for extra support for customers on the meters:

We will continue to monitor the situation over the months ahead because we are aware of the extreme vulnerabilities of this group.

But a spokesperson for the End Fuel Poverty Coalition, said the Government needed to go further:

Even the energy firms are now waking up to the reality that pre-payment meter customers are struggling in cold damp homes this winter.

Research for the Warm This Winter campaign has shown that PPM customers are likely to be vulnerable or have health conditions made worse by being unable to stay warm.

Many will have been forced onto a pre-payment meter against their will.

With MPs and charities increasingly concerned for the wellbeing of people in cold damp homes, we cannot leave their safety to chance.

The Government must act urgently to ban any further forced installations of pre-payment meters either by court warrant or by smart meter.

Energy self-disconnection epidemic hitting most vulnerable

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

A spokesperson for the End Fuel Poverty Coalition commented:

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

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

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

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

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

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

Real action from the government is needed.

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

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

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

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

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

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

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

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

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

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

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

Ruth London of Fuel Poverty Action said:

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

There is plenty of money.

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

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

ENDS

Image from Shutterstock posed by actor.

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

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

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

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