The End Fuel Poverty Coalition has written to the Chancellor and other Cabinet Ministers calling for a meeting to discuss operational problems with the energy bills measures the Government announced on 26 May 20221. The Coalition describes itself as a group of more than 60 charities, trade unions, social enterprises, local government representatives and other campaigners1.
The letter sets out ten areas where it says clarification is needed. These include how funding will reach the millions of people on pre-payment meters given the challenges of previously used voucher systems; what support will be available to the estimated 200,000 people living in Park Homes; how help reaches households that do not receive electricity bills; how those living off-gas and people on heat networks can be better supported by the price cap; and what steps can be taken to ensure landlords in the Private Rented Sector pass on the full savings of bills, especially in multiple occupancy households1. The Coalition also asks what the impact of financial support will be on the care charges that disabled, elderly and vulnerable people are assessed on, and on the benefits cap and the minimum income guarantee1.
The letter states that the winter 2022/23 price cap is now predicted to exceed the £2,800 Ofgem estimates, and warns that further short-term financial support will be needed this winter to mitigate any further increases above that figure1. It repeats earlier calls for a review and reform of the energy supply market, to consider a social tariff, an energy for all allowance and a total price cap ceiling1.
"As well as operational concerns about the existing Government support, Ministers must also realise that the measures will only seek to prevent additional homes entering fuel poverty and help to stop many of those in fuel poverty becoming utterly destitute. It will not fundamentally improve the situation of the 6m-plus households already in fuel poverty."
The Coalition's letter also asks for reassurance that customers will no longer be penalised for failures in the energy market through standing charges or other costs added to energy bills, and urges funding for a skills strategy to deliver the "retrofit army" needed to improve home energy efficiency1. Among the organisations quoted in the announcement, the National Pensioners' Convention said it had separately written to Ofgem and the Chancellor, asking for the reduction or removal of standing charges, a permanent £500 increase in the Winter Fuel Allowance, an end to price discrimination against those who cannot pay online or by Direct Debit or who do not have smart meters, the removal of 5% VAT on energy, and major investment in insulation of cold, damp housing1.
| Area of concern | What the Coalition asks |
|---|---|
| Pre-payment meters | How funding reaches millions on pre-payment meters given voucher system challenges |
| Park Homes | What support is available to the estimated 200,000 residents |
| Off-gas and heat networks | How these households can be better supported by the price cap |
| Private Rented Sector | Steps to ensure landlords pass on full bill savings |
| Care charges | Impact of support on charges disabled, elderly and vulnerable people are assessed on |
| Benefits | Impact on the benefits cap and minimum income guarantee |
Why it matters for households
The letter concerns how the support announced on 26 May actually reaches homes, rather than whether it exists. For households whose energy arrives through a landlord, a park home site, a heat network or a shared supply, the questions raised go to whether the money reaches the meter at all. For households on pre-payment meters, the letter points to the practical difficulty of delivering funds through voucher systems. For disabled, elderly and vulnerable households, the concern is that extra financial support could alter the care charges they are assessed on, so the net gain may be smaller than the headline figure. The Coalition's own assessment is that the measures prevent more homes from entering fuel poverty but do not fundamentally improve the position of the 6m-plus households already in it1. Its wider asks, including a social tariff and reform of standing charges, go to the fixed costs a home pays regardless of how much energy it uses.
What happens next
The Coalition has requested a meeting with the Chancellor and Coalition members to discuss proposed solutions1. It has also urged the Government to make further statements setting out additional financial support for people in fuel poverty this winter, announce funding for action to improve the energy efficiency of homes, and ensure a secure, renewable-led, domestic energy supply1. No response from the Chancellor or other ministers has been reported.
Sources1 cited
- Government urged to address ten failures in energy bills plans - End Fuel Poverty Coalition, endfuelpoverty.org.uk