The Chartered Institute of Plumbing and Heating Engineering (CIPHE) has responded to Chancellor Jeremy Hunt's spring statement, saying the continuing support for energy bills is a relief to many worried about slipping further into fuel poverty1. The institute's response was published on 15 March 20231.
CIPHE said that maintaining the energy price guarantee at current levels for a further three months is welcome, but noted that the month still sees the end of the one-off winter support payment1. It also said the prepayment meter penalty will be removed from four million households, which it described as a positive step1.
Kevin Wellman, Chief Executive Officer at the CIPHE, said by the government's own figures almost 2.5 million households in England fell into fuel poverty in the last twelve months1.
"By the government's own figures, almost 2.5 million households in England fell into fuel poverty in the last twelve months. This was never the time to further increase energy bills, so maintaining the energy price guarantee at current levels for a further three months is welcome. However, this month still sees the end of the one-off winter support payment and, with no progress in bringing the number of households to a minimum energy efficiency rating of C having been made, more is needed. There must be a greater focus on comprehensive and sustainable solutions addressing root causes of fuel poverty to ensure that everyone has access to affordable and safe energy."
Wellman added that as an educational charity dedicated to how the plumbing and heating industry protects consumers, including the most vulnerable people in society, the institute is pleased to see the prepayment meter penalty removed from four million households1. He said the main concern remains for those who continue to face the threat of being unable to heat their homes, and that with energy costs forecast to fall it is vital that any withdrawal of future support is targeted so as not to adversely affect people who still need assistance, such as those on low incomes, or those living with health and age concerns1.
The spring statement measures CIPHE responded to are set out below.
| Measure | Change |
|---|---|
| Energy price guarantee | Maintained at current levels for a further three months1 |
| Prepayment meter penalty | Removed from four million households1 |
| One-off winter support payment | Ends this month1 |
Why it matters for households
The energy price guarantee sets a limit on the unit cost of gas and electricity for households covered by it, so its extension for three months keeps the level of support in place for that period rather than allowing it to rise1. For homes on a prepayment meter, the removal of the penalty changes what those customers pay relative to other payment methods, a difference that has been a long-standing feature of the price cap rates by payment method.
The end of the one-off winter support payment means a separate, time-limited payment stops, even as the guarantee continues1. CIPHE's figures put almost 2.5 million households in England into fuel poverty over the previous twelve months, and it points to a lack of progress on bringing homes up to a minimum energy efficiency rating of C1. Energy efficiency is the part of the picture a household controls directly, since it determines how much energy a home needs before any price or support mechanism applies. The institute's position is that support withdrawal should be targeted at those who still need it1.
What happens next
The energy price guarantee is to be maintained at current levels for a further three months1. The one-off winter support payment ends this month1. No further dated steps are set out in the institute's response1.
Sources1 cited
- CIPHE Responds to Spring Statement, ciphe.org.uk