I help families in fuel crisis - cold homes and skipped meals are becoming Britain’s new normal
There needs to be much more action to bring down energy bills, writes Fuel Bank Foundation CEO Matthew Cole
We support around 400,000 people every year, and over half turn off their heating completely or rarely use it because of cost.
Picture: Alamy
By Matthew Cole
Households across the country are bracing for an expensive winter.
Energy costs always increase in the colder months because we need to heat our homes – but the unfortunate truth is that there are millions of people who don’t have a choice to turn on their heating. They simply can’t afford to.
This is what we call fuel crisis – the point at which someone has literally no energy left to power their home. It is different from fuel poverty when someone has energy, but not enough to keep their home warm for a reasonable amount of time at a reasonable cost.
We hear the real-world consequences of this every day at Fuel Bank Foundation. We support around 400,000 people every year, and over half turn off their heating completely or rarely use it because of cost. Around two in five people are skipping meals or saving hot water by showering less.
These aren’t choices people should have to make. Especially not parents with children. But over 143,000 of the people we supported over the last year are children. So, they are making these choices – not every now and then, but on a weekly basis, sometimes daily.
We need much more action to bring down energy bills. Right now, it feels like we’re constantly addressing the symptoms rather than the causes – but the same symptoms reappear every year without fail. As a nation, we’re currently fighting a losing battle.
This is backed up by the fact that around a quarter of those we support are turning to us for the very first time – a clear sign that need is spreading, not shrinking, and that it now reaches into every postcode across the country.
Last year’s Budget did a lot to take policy costs off bills. The fact that energy bills still increased demonstrates the scale of the challenge.
Under Andy Burnham’s leadership, measures to tackle the cost of living were prioritised in his first days in office, including temporarily removing VAT from energy bills. There are indications that more support is on the way in this year’s Budget too.
So, what measures would make a material, long-term difference to tackle the root cause rather than the impacts?
Firstly, the Government should target action to recognise the unique needs of different households and make immediate support available automatically, without people having to apply. This sort of targeted action would provide immediate financial support to the most vulnerable households across the country.
Second, reform prepayment meter billing to spread the cost throughout the year. At Fuel Bank Foundation, we’re unique in only supporting households that prepay for their energy – this is often how the most vulnerable pay for their energy. Government statistics show that households that pay for electricity by prepayment meter have the highest rates of fuel poverty and tend to have much lower incomes.
Research from the Resolution Foundation has previously found that, during winter and after accounting for housing costs, prepayment customers need to spend more than 30% of their income on energy. They’re also paying nearly £300 more over winter than their direct debit neighbours. Suppliers should be mandated to pause debt repayments over winter, rebalance standing charges across the year, and use data proactively to identify and support vulnerable customers.
Finally, the Government must prioritise retrofitting existing homes so they are good quality and energy efficient, ending the link between poor housing and fuel crisis. About 40% of people that we support live in a home rated EPC D or below. Bringing all fuel-poor homes to EPC C would save households an average of £480 on their annual energy bills. Delivering the Warm Homes Plan in full would help millions of households in the long term.
The stark reality is that a return to the days of cheaper energy is still a long way off. More households are being plunged into fuel crisis and quietly coping in ways no one should have to in order to keep warm, washed and fed.
Providing long-term support for these people starts with tackling the cause, not the symptoms. That means lowering energy costs through smart policy, reducing households’ running costs by improving energy efficiency and ensuring targeted support is readily available for the most vulnerable people.
Matthew Cole is CEO of the Fuel Bank Foundation.
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