Reduced incomes, higher energy costs and the heightened risk of contracting Covid-19 will lead to a “lethal cocktail” for thousands of vulnerable people this winter, National Energy Action (NEA) has warned.
The UK Fuel Poverty Monitor, produced by both the NEA and Energy Action Scotland, collected evidence from 73 organisations to understand the impact the pandemic has had on consumers.
The report, released today (14 September), found five main impacts on fuel poor households:
- An increase in energy use, due to the number of people spending more time at home
- A reduction in income, as many jobs were either lost or placed on furlough
- Increased affordability issues and therefore debt, leading to energy rationing
- Reductions in smart meter/ECO installs
- Difficulties in accessing support, especially where households were digitally excluded or spoke English as an additional language
It further warns that prepayment meter (PPM) customers are particularly at risk from the impacts of the pandemic, with many struggling to top up when asked to remain in their homes. Furthermore, many PPM customers will be in significant debt even before the winter.
This, the report adds, creates a particularly stark situation in Northern Ireland, where a far greater proportion of the population uses PPM.
Meanwhile lockdown restrictions meant installations of energy efficiency measures dropped by almost 90 per cent, equivalent to 30,000 fewer measures installed. The report highlights that another lockdown over winter could see families in inefficient homes face heating bills that are £49 higher than those in well-insulated homes.
In addition to the fuel poor being hit hard, the organisations that have been created to assist the vulnerable have also faced major challenges. One third said they have had to furlough staff while two thirds noted the crisis had a “significant or very significant” impact on the type and range of services they were able to offer.
The report outlines five measures in order to be better prepared for any future restrictions.
These include improving the identification of those in need by using all available data. To this end it recommends Ofgem and energy companies work to ensure the financially vulnerable are more easily identified through the creation of a financial vulnerability flag or “needs code” with the Priority Services Registers (PSR).
It also wants to see the resumption of business-as-usual policy-making and programme delivery, which faced a hiatus due to the pandemic.
“The fuel poverty strategies for England and Scotland have both been delayed and the new plans to address fuel poverty in Wales and Northern Ireland are yet to be consulted on. This leaves significant holes in strategic frameworks that underpin actions to address fuel poverty”, it added.
Better communication of available assistance, providing more assistance to PPM customers through ensuring sufficient stocks of top-up cards, as well as addressing increasing amounts of energy debt that have accrued as a result of the virus, will also be key.
Adam Scorer, chief executive of NEA, said: “Cold weather always hits fuel poor households hard. This winter, the mixture of reduced incomes, higher energy costs and the heightened risk of contracting Covid-19 will be a lethal cocktail for thousands of vulnerable people.
“The experience of frontline organisations, working with some of the most vulnerable households, cries out for increasing the level of support and advice that is available
“In the spring we needed to react quickly and adapt to the crisis. That happened pretty well. For the winter we can plan and resource properly. If we don’t, the cost will be high indeed.”
Frazer Scott, director of Energy Action Scotland and co-author of the report, said: “Estimates see fuel poverty rates in Scotland rising to 29 per cent of households, many of whom will be facing the threat of a harsh Scottish winter in a cold, damp home. Many of these people will become ill in an all too familiar pattern and will be forced to rely upon NHS Scotland which is already facing unprecedented pressures on its services this year.
“Unlike some of the problems we face as a country, there are many proven solutions to fuel poverty. Let us make this the year we act upon them and prioritise the most vulnerable in society with help.”