Credit: iStock
Campaigners warn of worsening fuel poverty this winter, as energy prices increase and energy efficiency schemes remain underpowered
Fuel poverty campaigners will today deliver a petition with over half a million signatures to Parliament, urging the government to move boost support for those at risk of fuel poverty and health problems caused by cold and inefficient homes.
Launched by Fuel Poverty Action, the petition warns the 10 per cent increase in Ofgem's energy price cap that comes into effect today means average average dual fuel bills of £1,717 a year are now 65 per cent higher than they were in 2020. Campaigners have warned the sustained high prices have caused many households to reduce their use of heating, putting some people at risk of serious health problems.
Moreover, while the Winter Fuel Payment was previously used by many pensioners to offset the high standing charges they face, its removal for all but the poorest pensioners could result in more vulnerable people under heating their home.
The petition, which will be handed in to government this afternoon, urges the government to switch levies on energy bills to be funded through general taxation and deliver market reforms to help ensure households benefit more from low cost renewables and are less exposed to fluctuations in fossil gas prices.
Fuel Poverty Action has also flagged how electricity prices are currently four times higher than gas prices, thereby exposing the eight per cent of households with electric heating to higher bills.
"This is extra money people can ill afford - especially the millions of low-income pensioners who will be plunged into fuel poverty as a result of Rachel Reeves axing winter fuel payments for two million pensioners who are already struggling," said Jonathan Bean of Fuel Poverty Action. "A huge number of people will resort to turning off the heating and trying to survive in cold, damp homes. Many will end up in hospital, and thousands will die."
The petition, which has gained more than 662,000 signatures, also urges the government to introduce "proper taxation" on oil and gas industry profits, end fossil fuel subsidies, and introduce a new universal basic energy allowance called "Energy For All" to help reduce fuel poverty.
"Energy For All would mean that older people would have a level of energy for warmth, light, hot water and cooking without worrying about falling into debt," said Jan Shortt, general secretary of the National Pensioners Convention.
The calls come on the same day as a fresh analysis from the Energy and Climate Intelligence Unit (ECIU) claiming that millions of uninsulated homes face a £385 "hit" this winter.
Released to coincide with the new price cap, the think tank's study claims even if households cut their gas and electricity use by 15 and 10 per cent respectively this winter, bills are still expected to be 55 per cent higher than before the gas crisis triggered by Russia's invasion of Ukraine. As a result, a typical home with an Energy Performance Certificate (EPC) rating of band C would pay £900 for gas and electricity over the winter compared to £580 before the crisis.
But households with poorer energy efficiency, such as those that are not properly insulated, are set pay even more, with ECIU estimating EPC band F homes will pay around £1,290 over the course of the winter - around £440 more than pre-crisis and £385 more than EPC band C rated home.
Ultimately, homes in the UK rated EPC band D or worse will collectively pay up to £3.7bn more this winter in gas and electricity bills, compared to if they were all rated EPC C. Of these extra energy costs, £2.4bn will be spent on gas and £1.3bn on electricity, the think tank claims.
If demand is not suppressed by between 10 and 15 per cent as a result of higher prices, the report estimates winter energy bills will be 75 per cent higher than before the crisis, with a typical EPC C rated home paying around £1,000 for energy this winter, compared to around £580 pre-crisis.
"Millions of households are facing higher bills this winter in cold homes that simply leak heat," said Jess Ralston, energy analyst at the ECIU. "Investment in improving energy efficiency through government schemes has dropped over the past decade and fallen even further in the first six months of this year. At a time of energy bill crisis, this makes very little sense."
The ECIU added that since energy efficiency schemes were significantly downsized by the previous government in 2012, insulation installation rates have dropped by more than 90 per cent, resulting in higher household bills for millions of homes.
"Insulating a home brings down its bills once and for all, meaning people won't simply turn off the heating to get by which jeopardises their health," said Ralston. "This is why government plans for minimum standards for privately rented homes are so important given they are the coldest and dampest properties.
"All eyes will be on the Budget to see what investment and plans the government will muster to tackle this and the ongoing energy crisis. Improved efficiency means less gas burnt in boilers and less gas needed from international markets, thereby boosting British energy security."
Ground source heat pump specialist Kensa has similarly called for the government to protect consumers and aid those struggling to afford basic heating after its research found that almost a quarter of households relying on electric heating are living in fuel poverty, compared to 13 per cent of English households overall.
According to research by the manufacturer and fuel poverty charity National Energy Action (NEA) outdated electric heating systems are trapping hundreds of thousands of UK households in fuel poverty.
The Labour Party has pledged to introduce a Warm Homes Plan to upgrade five million homes and announced that it will consult on tightening standards in the private rented sector so these homes would have to reach EPC band C by 2030.
The Party's General Election manifesto also set out plans to introduce low interest loans to incentivise energy efficiency improvements and low carbon heat measures.
BusinessGreen has contacted the government for comment but had not received a response at the time of going to press.
Want to understand what is going on at the cutting edge of sustainability? Check out BusinessGreen Intelligence - the premier information for professionals focused on the UK's green economy.
