Supporting Fuel Poverty Awareness Day 2021

 Fuel Poverty Awareness Day is upon us, and many couldn’t be more aware already.

We have seen energy bills increase by £250 on average just this year, and there is the potential for future increases in the spring. Some experts say that the price cap could increase by a further £600 in April, and at the National Energy Action (NEA), we don't think that is an unreasonable estimate. This winter, therefore, represents a significant challenge for the poorest households living in the least energy efficient homes. Their costs are already high, but with reduced incomes for those who rely on Universal Credit, and spiralling inflation, the picture is bleak. And the threat of even higher costs in the spring could push some households to resort to rationing their energy this winter, living in cold homes.

Thankfully, there is some support available. Before this energy crisis, we already had the Warm Home Discount, a £140 payment to 2.2m low income energy customers; the Cold Weather Payment, a £25 payment for low income households for each 7 day period of very cold weather between 1 November and 31 March; and the Winter Fuel Payment, £200 or £300 winter payment for those who are older than 65. On top of this, the Government announced as part of its latest budget that there would be a new Household Support Fund this winter, with £500m being given to local authorities in England and the devolved nations to help households with the essentials: energy, food, clothing and water.

However, this is not enough. The four million households in fuel poverty across the UK will see a cumulative increase of more than £1bn in their energy bills, an increase they cannot afford. The result will be a mounting problem of energy debt, as households struggle to pay their bills. NEA has worked with Energy UK to put together a ‘Home Energy Checklist’ to ensure that when this happens, households know what to do. Contacting their supplier should be the first port of call – they can often help to arrange manageable payment plans or refer onto support schemes.

While this winter poses an extraordinary hurdle to overcome, there is hope on the horizon. The UK Government has, for the first time in many years, committed long term central funding to help fuel poor households improve their homes, with funding available for off gas households up to 2025. They have also signalled that the transition to net zero must be ‘fair and affordable’. NEA will endeavour to ensure that the journey to decarbonisation is exactly that. If it is, then we can reduce fuel poverty significantly. We do not get to net zero without ending fuel poverty and we will not end fuel poverty unless we harness the drive towards net zero.