The End Fuel Poverty Coalition has called for a meeting with the Chancellor and other Cabinet Ministers to discuss what it describes as operational problems with the energy bills support measures announced by the Government on 26 May 20221. The coalition, which it says comprises more than 60 charities, trade unions, social enterprises, local government representatives and other campaigners, set out ten areas where it says clarification is needed1.
The letter states that two principles have been established: that short-term financial support for those in fuel poverty will be needed, and that the Government has identified means to fund it1. The coalition's questions cover how funding will reach 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; and how those living off-gas and people on heat networks can be better supported by the price cap1. It also asks what steps can be taken to ensure landlords in the Private Rented Sector pass on the full savings of bills, particularly in multiple occupancy households, and what the impact of financial support will be on the care charges disabled, elderly and vulnerable people are assessed on, on the benefits cap and on the minimum income guarantee1.
The coalition says the winter 2022/23 price cap is now predicted to exceed the £2800 Ofgem estimates, and that further short-term financial support will be needed this winter to mitigate any further increases above that figure1. It has repeated 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."
Other organisations quoted in the coalition's statement put forward separate proposals. The National Pensioners' Convention said it has written to Ofgem and the Chancellor and is 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. The Chartered Institute of Housing said the Chancellor's emergency measures were "only a sticking plaster" and called for a national insulation scheme, adding that landlords need government support including funding and programmes to tackle the shortfall in skilled retrofitters1.
Why it matters for households
The measures announced on 26 May are described by the coalition as support that prevents more homes entering fuel poverty rather than one that improves the position of the 6m-plus households already in it1. For a household, the practical questions are whether the money reaches the meter at all. The coalition's list identifies groups where that is uncertain: people on pre-payment meters, an estimated 200,000 people in Park Homes, households that do not receive electricity bills, those off the gas grid and people on heat networks1. Tenants in the Private Rented Sector are a further case, where the coalition says there is a risk support is not passed on by landlords1. For homes already in debt, the coalition asks what further steps can be taken to support them following recent price increases1. The price cap remains the mechanism through which most of these costs arrive, and the coalition's own figures put the winter cap above the £2800 Ofgem estimates1.
What happens next
The coalition has requested a meeting with the Chancellor and coalition members to discuss proposed solutions, and says it would welcome the opportunity to facilitate one1. It has urged the Government to make further statements setting out additional financial support for people in fuel poverty this winter, to announce co-ordinated action on home energy efficiency, and to ensure a secure, renewable-led domestic energy supply1. No date has been given for a response, and no Government reply to the letter has been reported1.
Sources1 cited
- Government urged to address ten failures in energy bills plans - End Fuel Poverty Coalition, endfuelpoverty.org.uk