Here, National Energy Action, Mumsnet and the charity Gingerbread tell us our views on the rise of fuel poverty in Britain.
‘We’re back where we started in terms of the scale of fuel poverty’
Ron Campbell, Chief Policy and Research Analyst, National Energy Action tells us what progress needs to be made:
“So we are back where we started in terms of the scale of fuel poverty. The uSwitch research finds 6.3 million fuel-poor households in Great Britain; in 1996 there were 6.5 million UK households in fuel poverty.
“A decade after the publication of the UK Fuel Poverty Strategy all of the benefits from a wide range of programmes to increase household incomes; to improve energy efficiency standards; and to develop social tariffs have been undermined by relentless increases in domestic energy bills. And there will be more to come. The news that ScottishPower’s gas and electricity prices will increase from August 2011 will inevitably be followed by similar announcements from the remaining Big 5 energy suppliers.
The uSwitch research also suggests that fuel poverty is becoming a growing problem for more affluent households who had previously been thought immune to the threat of unaffordable energy costs. Whilst this has to be a matter of some concern, NEA would emphasise that rising fuel poverty among financially disadvantaged households is a much more disturbing trend and must remain the focus of energy efficiency schemes and other energy cost reduction policies and programmes.
“Most middle income households have the option to reduce energy costs through investment in effective insulation measures and efficient heating systems; this option is not available to low-income fuel-poor families and individuals.
NEA maintains that heating and insulation improvements represent the most rational and sustainable solution to fuel poverty and, in fact, the current Energy Bill offers potential solutions for all households regardless of their financial status.
“The Green Deal will offer financial packages to enable middle and upper-income households to invest in energy efficiency upgrades at no upfront cost. This ‘able-to-pay’ arrangement is subject to the ‘Golden Rule’, that savings from improvement works must exceed the cost of any repayments; this represents a solution for fuel-poor middle-income households.
In the case of low-income households, where the Green Deal repayment model is inappropriate, the forthcoming Energy Company Obligation (ECO) is intended to assist fuel-poor financially disadvantaged households. Provided that ECO resources are devoted exclusively to structured and coherent fuel poverty programmes, we can begin to make positive progress towards ensuring affordable warmth for vulnerable fuel-poor households.”
‘We frequently receive calls’
Fiona Weir, Chief Executive of single parent charity Gingerbread, comments:
“This new research provides further evidence that single parent families are being particularly badly affected by the difficult economic climate, and by rising energy bills. We know that children in single parent families are already twice as likely to live in poverty as those in couple families, and that single parents can find it difficult enough to make ends meet on a day-to-day basis when they are living on very low incomes – let alone when a huge energy bill drops on to the doormat. What is particularly shocking is that so many single parent families in work are facing fuel poverty, with the research showing that 39% of single working parents are fuel poor, making them the most likely group to be in fuel poverty.
“Gingerbread frequently receives calls to our single parent helpline from those who are struggling in fuel poverty. We often find that newly-separated parents find it hard to cope with both a sudden loss of household income and – in some cases – having to deal with household bills for the first time.
“This is why we’ve developed a factsheet for single parents about the best ways of managing household bills and where to go for further help and support. Fundamentally, however, the government must do much more to address all forms of poverty – including fuel poverty – and we urge them to consider these findings carefully as they develop policies to do so.”
If you’re a single parent family struggling with energy bills and need some advice, you can contact Gingerbread on: 0808 802 0925
Carrie Longton, Co-Founder of Mumsnet
“Parents are increasingly worried by the rising cost of fuel. Month after month Mumsnetters are spending more of their income on gas and electricity. The stress is being felt by all, with many reporting bills of over £1,000 a year.
“Even in the height of summer this is putting immediate strain on family budgets, but come Autumn and Winter there’s a real worry that families will find the cost of keeping their homes sufficiently warm too great.”
Do you think energy costs are out of control? What can the government do to help? Or maybe you consider yourself middle class but still unable to cope with rising energy prices? Leave your comment and let us know what you think.