Petition against minimum energy top-ups launched

The MP for one of the areas most hit by fuel poverty has launched a campaign against British Gas’ decision to increase the minimum top-up amount for customers on pay-as-you-go tariffs from £1 to £5.

The move has been criticised by anti-poverty campaigners and charities that claim it will impact parents and pensioners on low incomes who will be forced to make a choice between food and fuel.

More than 16% of households experience fuel poverty in Birmingham – well above the national average. Nationally, at least 3.66 million households are in fuel poverty.

Those who use top-up meters are often in debt and have insecure incomes, and rely on small top-ups to ration their heating to see themselves through to payday. Research shows that those on pre-pay meters pay hundreds of pounds more in tariffs on average than direct debit customers.

The MP for Birmingham Edgbaston, Preet Kaur Gill, has written to the CEO of British Gas, Sarwjit Sambhi, to urge him to take his ‘social responsibilities seriously and reverse the decision immediately’.

Ms Gill also set up an online petition to put pressure on British Gas, the country’s biggest energy supplier.

Ms Gill says:

This decision will disproportionately affect those who are already struggling to get by. To implement it in the middle of winter, and what is the most financially challenging time of the year for many people, is the height of social irresponsibility.

A company which last reported profits of £466 million should not be increasing the burden on its most hard-up customers. We ask that British Gas does the responsible thing and reverses this decision.

The public can sign the petition at: https://you.38degrees.org.uk/petitions/british-gas-reverse-the-minimum-top-up-rise-1

Call for action on the crisis of the winter death rate among penisoners

End Fuel Poverty Coalition Member, the National Pensioners Convention (NPC), is calling upon the next government to respond to figures released today that show that excess winter mortality rates in 2018 to 2019 reached 23,200 in all English regions and Wales.

Excess winter mortality rates continue to be higher in females compared with males, with the figure highest in females aged 90 years and over. Respiratory diseases, such as pneumonia, remain the leading cause of death.

Today’s figures are proof that older people struggle with poor housing, rising fuel costs, and a basic state pension that is inadequate and bottom of the Organisation for Economic Cooperation and Development (OECD) league table.

Pensioner poverty is increasing with 2 million pensioners living in poverty and one in three older people living in homes with inadequate heating or insulation making their homes more difficult to heat or keep warm.

Jan Shortt NPC General Secretary said:

The next government must make a commitment to end fuel poverty and ensure that energy companies do not abuse the implementation of the next cap on prices.

The key to tackling winter deaths is to make sure older people have got a well-insulated, warm home and the income needed to pay the fuel bills.

This is a basic requirement of what a decent society should do. We need the next government to roll out a more effective programme to insulate homes, building more suitable properties for older people and raising the winter fuel allowance in line with inflationary costs of energy.

The End Fuel Poverty Coalition released a Manifesto setting out the changes the next government needs to make to end the scourge of fuel poverty.

Ending fuel poverty must be priority for next government

The End Fuel Poverty Coalition has called on all political parties to adopt four pledges to end the scourge of fuel poverty in England.

A full copy of the Manifesto is available for download and prospective Parliamentary Candidates wishing to show their support can do so by signing up online.

Fuel poverty means that a household is forced below the poverty line as a result of the cost of using energy in their home.

According to the latest definition of fuel poverty, almost one in five households are in fuel poverty in England alone (BEIS).

Fuel poverty is caused by low income, high fuel prices, poor energy efficiency, unaffordable housing prices and poor quality rental housing.

It can lead to respiratory, circulatory and mental health problems (PHE) as well c.15,000 winter deaths caused by cold homes (NEA). In children, it can lead to developmental problems and poor performance at school (NCB). It can also lead to people taking days off work (IPPR).

The End Fuel Poverty Coalition calls on all political parties to commit to a Manifesto that will end fuel poverty for good. To achieve this, the next Government must:

  1. Declare energy efficiency and eliminating fuel poverty a national infrastructure priority.
  2. Take immediate action to improve the standards of rented homes.
  3. Reform the domestic energy supply market.
  4. End the Benefits Freeze and address the chronic scale of unclaimed benefits

 Jacky Peacock, Director of Advice4Renters, said:

Without more ambitious action, people will be condemned to fuel poverty for decades to come. As well as the devastating impacts cold homes have on their occupants, the delayed cost of inaction extends to all of us.

Addressing fuel poverty is a crucial part of meeting new stretching carbon reduction targets. Without a big improvement in current efforts, the government will not meet its climate change targets.

Ruth London of Fuel Poverty Action, added:

Ending fuel poverty is in our grasp if a National Energy Efficiency Programme is combined with fully funded support for people in fuel poverty, reform of the private rented sector, effective accountability to social housing residents, and proactive, genuinely independent and fully empowered local authority supervision of retrofits and new residential construction.

As well as providing detailed recommendations to policy makers, the Coalition Manifesto sets out the benefits to ending fuel poverty.

Improving the energy efficiency standards of Britain’s homes could cut household bills by around £370 a year, while reducing 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.

Improved winter warmth and lowered relative humidity have proven benefits for cardiovascular, respiratory, and mental health. For every £1 spent on retrofitting fuel-poor homes an estimated £0.42 is saved in UK National Health Service spending.

Peter Smith, Director of Policy and Research at National Energy Action (NEA), said:

Ending fuel poverty is a crucial part of meeting new stretching carbon reduction targets and improving health and well-being.

The key actions that are necessary are in our grasp and have cross-party support. We hope our recommendations will be acted on by all the main political parties within their manifestos.”

A full copy of the Manifesto is available for download.

Prospective Parliamentary Candidates wishing to show their support for the End Fuel Poverty Manifesto can do so by signing up online, emailing info@endfuelpoverty.org.uk or completing the form below.

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Coalition responds to Committee on Fuel Poverty Interim Report

The Committee on Fuel Poverty has announced its decision to delay its annual report until after the Government has completed its review of the Fuel Poverty Strategy.

It has issued an interim report given that the Government’s first strategic fuel poverty milestone is due in 2020 and recent commitments to bring all greenhouse gas emissions to net zero by 2050.

Commenting on the report, a spokesperson for the End Fuel Poverty Coalition commented:

The Committee on Fuel Poverty interim report is clear that without more investment, the government will miss its targets for both fuel poverty and net zero.
The Chancellor needs to take bold and decisive action in the planned Budget on 6 November to ensure that tackling fuel poverty is set out as a national infrastructure priority with the funding to match.
Vital funding will include £1.1bn to fund a nationwide Fuel Poverty Clean Growth Challenge Fund.

The Coalition previously set out the steps Government needs to take to end fuel poverty in its response to the Fuel Poverty Strategy review.

Business and charities unite in call for energy efficiency investment

End Fuel Poverty Coalition members have joined leading charities and businesses in a new drive for energy efficient investment.

A Declaration, ‘Energy Efficiency First’, has been published, calling on all political parties to make investment in home energy efficiency an infrastructure investment priority.

The Declaration states that to reach the UK’s legally binding net-zero emission and fuel poverty targets, all the UK’s homes will have to be made highly energy efficient. Additional public capital investment of £1 billion a year for the next 15 years is needed to ensure the targets are achieved.

The signatories point out that there is potential to reduce energy demand in UK homes by at least a quarter, saving the average household £270 every year. A quarter of the energy currently used could be saved and there is technical potential to cut home energy use in half.

The Declaration has been published on the day that the Energy Efficiency Infrastructure Group (EEIG) sets out its vision for how to make all UK homes energy efficient. Called ‘The Net-Zero Litmus Test’, it reminds politicians that energy efficiency is the most cost-effective way to decarbonise the economy and would deliver a net benefit of over £50 billion to UK households, businesses and government.

The report finds that installation rate of home insulation measures has been cut by 95% since 2012. 170,000 homes are being upgraded with energy efficiency improvements in the UK each year but the number needs to rapidly rise to 1.2 million a year in order to meet decarbonisation targets.

The EEIG reports progress made against the its six-step plan to set up an energy efficiency infrastructure programme for the UK and sets out how to get on track.

Peter Smith, Director of Policy and Research at National Energy Action, and End Fuel Poverty Coalition Member said:

Fuel poverty continues to be a very real and stark reality for millions of people across the UK. The aim to reach net-zero is one of the most ambitious strategic goals the UK Government has ever set. It will have profound implications for all UK citizens, businesses and society at large.

The UK can only move rapidly towards net-zero, whilst creating a fair energy future for all citizens, if we urgently provide central investment to improve domestic energy efficiency. The top priority is to help the poorest households living in least efficient homes, mainly in rural areas and other hard to heat homes.

Alasdair MacEwen, Spokesperson for the Energy Efficiency Infrastructure Group said:

Achieving net-zero emissions cost-effectively is simply impossible without a huge cut in energy demand. Whether any political party is prepared to do this is the litmus test of whether it is serious about achieving net-zero emissions. It can only be achieved if we treat the decarbonisation of homes as the UK’s number one infrastructure priority. No other infrastructure project can benefit so many and at the same time create returns on investment.

Tom Thackray, Director of Infrastructure and Energy Policy at the CBI said:

All government departments must buy in to improving the efficiency of our homes and buildings and work with industry to provide the correct regulation. Treating energy efficiency as an infrastructure priority, would change the way in which it is approached by the Government allowing the issue to be treated as other public investments, such as in public buildings and transport infrastructure. It would send a clear message to investors and consumers as to the direction and ambition of government policy.

The EEIG represents a growing and broad-based coalition of over 25 industry groups, NGOs, charities and businesses that are asking for rapid improvement on energy efficiency in homes and buildings policy in the UK.

For a full list of signatures to the Declaration, please visit www.e3g.org

 

Third of benefit claimants fall behind on bills

New data from Citizens Advice shows 49% of benefit claimants affected by the benefits freeze have struggled to meet essential costs such as rent, household bills and food while 40% have lost sleep due to money worries in the past 12 months.

The report, achieving income security for all, found that 33% have fallen behind on household bills (such as their energy bills) and 38% have gone without essentials like heating or food.

The findings are worse for Universal Credit claimants, with over half (55%) having gone without essentials such as food, and 51% saying they have lost sleep because of their finances.

The charity is calling for increased financial support for people claiming benefits as it finds almost two in five (39%) people who claim have less than £100 at the end of each month, after paying for rent or their mortgage, food, council tax and household bills.

Disabled people and people with children were more likely to have gone without essentials such as food and toiletries. Around 44% of disabled people’s households and 45% of households with children went without in the past 12 months.

Citizens Advice is calling on the government to end the freeze on benefit rates and reduce the five-week wait for Universal Credit claims.

Since April 2016, the level of most benefits like Universal Credit and Tax Credits has been frozen.

This is having serious consequences for people with over a quarter (27%) of people claiming benefits saying financial worries have made them feel lonely/isolated. Some 29% say financial worries have affected their mental health.

Citizens Advice provides free, independent and impartial advice in England and Wales and last year we helped 580,000 people across England and Wales with their benefits. Some one in six households in the UK claim income-related benefits.

Citizens Advice is calling for urgent solutions from the government:

  • End the freeze on benefit rates. Uprate payments by the Consumer Prices Index plus 2% for four years. Recalculate the Local Housing Allowance to at least the 30th percentile of local rents and re-establish the link with rental prices.
  • Reduce the five-week wait by bringing forward the first non-repayable payment to no later than two weeks into a Universal Credit claim.

Gillian Guy, Chief Executive of Citizens Advice, said:

The benefits system is designed to help people with their finances in times of need, but too often our frontline staff and volunteers see a different story.

We’ve found people are losing sleep and unable to afford essential things like food and housing while receiving Universal Credit. It is totally unacceptable that our benefits system is not providing the financial safety net that people need.

The government needs to take urgent action in this week’s spending review by reducing the five-week wait for Universal Credit and ending the freeze on benefit rates.

Danielle, a parent of two children who was helped by Citizens Advice, said:

I have been through so much in the past year. I was diagnosed with breast cancer. I went through chemotherapy and now I am in remission and healthwise am doing so much better.

Universal Credit during this time added so much stress that I did not need. My payments were delayed when I went from being self-employed to being off due to needing chemotherapy.

Thankfully I have family who were able to help me to make sure my rent was paid. And I repaid them when I received my Universal Credit payments. But the stress of thinking I might not be there for my children and how I would pay my bills was at times unbearable.

Lack of money will stymie government fuel poverty review

A lack of funding to tackle statutory targets on fuel poverty in England could have damaging long term consequences, according to the End Fuel Poverty Coalition.

The Coalition’s response to the Government’s Fuel Poverty Strategy Review broadly welcomes the consultation, but warns there are major areas which need improvement.

Fuel poverty means that a household is forced below the poverty line as a result of the cost of using energy in their home. Using the current measurement, at least 2.53m households are in fuel poverty in England alone.

The Strategy review proposes widening this definition to include all low income households living in cold homes (the ‘Low Income, Low Energy Efficiency’ indictor). The government believes this will better incentivise energy efficiency. This increases the number of fuel poor households in England from 2.55 million to 3.66 million: an increase of 44%.

The Coalition’s response argues that the most crucial action that Government can take is to support proposals for a new ‘Clean Growth Fuel Poverty Challenge Fund.’ This would help the poorest households living in the worst F and G-rated homes, mainly in hard to heat homes.

The Coalition’s detailed response to the Strategy Review also calls for additional improvements, to create a longer term framework for energy efficiency. These include:

  1. Better regulation of the private sector
  2. Make the Energy Company Obligation (ECO) Scheme more accessible to those in greatest need
  3. Introduce more locally led, area-based schemes to improve energy efficiency, backed up by a national “safety net”
  4. Ensure all improvements are of the highest and safest quality
  5. Examine new financial measures to improve energy efficiency across the wider housing stock such as stamp duty reforms, zero interest loans, etc.

 Dr Brenda Boardman, Emeritus Fellow at Oxford University’s Environmental Change Institute, and one of the core authors of the Coalition’s response, commented:

Fuel poverty policy has been in the doldrums for several months, so that this consultation is welcome evidence that the Government wants to revive policy.

There is recognition of the crucial importance of energy efficiency improvements, but no statements yet of appropriate funds. And yet there needs to be prompt, positive action to upgrade all the fuel poor in F and G-rated properties in the next 15 months, as promised.

The growing emphasis on regulation, for instance of the privately rented sector, is encouraging, but still depends on enforcement to be effective. We believe this is a great opportunity for the Department for Business, Energy and Industrial Strategy to be strong and really champion the fuel poor. 

Peter Smith, Director of Policy and Research at National Energy Action (NEA), said:

Without more ambitious action 160,000 fuel-poor households could still be living in the least efficient homes by 2020, with the Government way off-track towards meeting its 2030 statutory target. As well as the devastating impacts cold homes have on their occupants, the delayed cost of inaction extend to all of us.

Addressing fuel poverty is a crucial part of meeting the new stretching carbon targets. Without a big improvement in current efforts, the government will not meet its climate change targets. Poorer households will benefit the least from energy policies, whilst paying a higher share of the costs, despite making lower contributions to our overall emissions.

But it doesn’t have to be this way. Ending fuel poverty is in our grasp through a National Energy Efficiency Programme, fully funded support for those in fuel poverty and reform of the private rented sector.

A full copy of the End Fuel Poverty Coalition response is available online.

You can follow the Coalition on Twitter @EndFuelPoverty.