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The Independent reported in recent days that more than 3 million households were in fuel poverty last year – something that sadly comes as no surprise to us given the increasing requests we’re seeing for emergency financial support from customers. In fact, we’ve spent £35,000 in the current financial year from our own welfare fund solely on utilities.
From the war driven price increase that led the Government to introduce the £2,500 average cap, we recognise that costs have reduced to average of £1,928. However, we’re now entering a period when the Government’s current additional support schemes are coming to end while utility costs still stand at 70% higher than before the conflict. If there’s one thing that I’m thankful for here, it’s the fact that in the main, we’ve had a wet and relatively mild autumn and winter otherwise matters could have been much worse for our customers.
Contrast the position we’re seeing in terms of energy with that of the water industry, which has various schemes that to “reduce charges for individuals who would otherwise have difficulty paying their bill in full” and which prove really helpful for those on low incomes. Not only do the water companies offer a social tariff, but they also cap bills for customers with 3 or more children or for customers with certain medical conditions.
The utility companies currently have nothing like the type of support that’s available for water bills. Large families or people with medical conditions, or simply on a low income have few resources to help them, other than advice about energy saving and better insulation – but this doesn’t immediately help pay the bills. Low-income households might also be able to apply to energy Trust Funds – mainly to pay off arrears or buy white goods but right now, there’s no on-going support for such customers that allow them to benefit from cheaper bills and stay out of debt.
We recognise there’s no quick fix to reducing energy bills and to a degree, the UK is at the mercy of macro geopolitical events, but the Government could and should act to protect consumers from self-disconnection at worst and living in a cold home at best. Frustratingly, the best response available to the Government is one they’ve stated previously would be the subject of consideration and consultation; a dedicated social energy tariff. This would put utility companies on the same footing as those in the water industry while seeing consumers, including some of our own customers, benefit from a confirmed long term low-cost option. Of course, this would also help reduce the heat or eat scenarios in low-income households, which if not addressed has the potential to cost the country more in future. A targeted intervention on energy bills would surely prove beneficial to the broader social and economic health of the country as whole longer term.
It was heartening to see just before Parliament’s recess, a ten-minute rule motion put forward by Marion Fellows MP (SNP, Motherwell & Wishaw), shining a spotlight on exactly this issue. Let’s hope the Chancellor and the Department for Energy Security and Net Zero noted her calls and the Independent’s article. If the Government’s really committed to making a difference to those struggling with today’s living costs, a consultation on a social energy tariff should really feature within the upcoming Budget. Let’s hope the Hunt for this long missing consultation finishes on 6 March.