Cost-of-living crisis
By Matt Copeland, Head of Policy and Public Affairs, National Energy Action
Across the UK, cold homes are already damaging the lives of the poorest households. A year ago, more than four million households were estimated to be living in fuel poverty, on a low income and unable to keep their homes warm at a reasonable cost.
But energy prices are increasing seemingly exponentially, with Ofgem raising the standard variable tariff price cap from 1 April by over 50%. And with the dreadful situation in Ukraine, the wholesale price of gas has again rocketed to unprecedented levels. Some analysts are saying that the average energy bill could reach more than £2,500 a year by October.
Such prices would be devastating for the poorest households. For those already struggling with energy bills, they will find it even harder to keep up with payments, and millions of more will experience fuel poverty for the first time.
National Energy Action (NEA) estimates that the number in fuel poverty could double compared to a year ago if prices reach the £3,000 a year mark.
In response, some households will ration their energy use, leaving their homes below healthy temperatures and risking the health issues that can come with that – increased risk of respiratory illness, for example.
“Tenant liaison officers and managers must be trained to identify financial vulnerability and fuel poverty risk factors”
We often see this coping strategy with households that pay for their energy through a prepayment meter. Some will use the same amount of energy, but be unable to afford it, and will therefore rack up significant debts. Most will do both of these things.
There are steps that social landlords can take in order to help the poorest households stay warm this winter.
Firstly, they can let their tenants know where they can access support (nationally or locally) to help manage their energy bills. Information on this can be found on NEA’s advice pages.
Secondly, as close contacts of potentially vulnerable households, tenant liaison officers and managers must be trained to identify financial vulnerability and fuel poverty risk factors. They also need to know how to support households, either directly or by signposting them to others who can help.
Last, but by no means least, landlords should continue to improve the energy efficiency of properties to reduce bills for the long term. This will shield residents from future shocks in the energy market.
In addition to these practical actions, NEA is asking organisations to join us in asking the government to do more for fuel poor households, including:
- Expanding existing schemes to provide deeper support for more households
- Introducing a social tariff for energy alongside the price cap
- Helping to clear utility debts through starting a payment matching scheme – matching every pound that a household makes towards their utility debt repayments
- Providing funding to insulate low-income households from future price spikes, dramatically increase spending on fuel poverty-focussed energy efficiency schemes, permanently reducing energy demand.
If the government takes this into consideration, then the energy crisis will be significantly easier for fuel-poor households across the UK.
If you need guidance or advice, or would like peer to peer support on the cost of living crisis, join HQN’s Rent Income Excellence Network.
