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Seven million will experience dire fuel poverty without an extra £14bn

Rebecca Goodman
Written By:
Rebecca Goodman
Posted:
Updated:
17/10/2022

Seven million households will experience dire fuel poverty this winter without an extra £14bn, campaigners are warning.

This is despite measures already announced by the government to help those struggling with the cost of gas and electricity.

The Warm This Winter campaign, which is a new coalition of anti-poverty and environmental organisations, is urging the government to urgently increase the support available to low-income households.

The group says further help is needed to prevent the severe health impacts of living in cold, damp homes which it says will cripple the NHS and cause excess winter deaths.

It is calling for a range of measures. These include an immediate extra payment of £325 to those on income-linked benefits, which should be paid on 1 December.

A further payment of £150 should also be made to those receiving disability benefits and the £20 uplift to Universal Credit, which was brought in during the Covid pandemic, needs to be reinstated.

More help is also needed for those who do not have a mains gas connection and anyone who received the Warm Homes Discount last winter should be guaranteed to get it again this year, despite the eligibility criteria changing.

It says there also needs to be an immediate suspension to households being automatically moved onto expensive pre-payment meters if they are in debt to their supplier.

The cost of these measures would be around £14bn.

Energy support doesn’t go far enough

Several support schemes have been launched by the government to help with the rising cost of energy bills.

These include the Energy Price Guarantee, which originally set the average cost of energy bills at £2,500 for the next two years.

Following another government U-turn, it is now only in place in its current form until April 2023, after the new chancellor, Jeremy Hunt, confirmed a Treasury review will be launched into the guarantee.

A £400 payment has also been made to all households along with two cost-of-living payments for some on low incomes, the second of which will be paid in November.

Six million people have also received a £150 disability payment.

But even after these payments, since last winter, the cost of a unit of gas has risen by between 153% and 165% and the cost of a unit of electricity is up between 63% and 68%, according to data from the End Fuel Poverty Coalition.

‘We need the government to do more’

Sarah Woolnough, CEO of Asthma + Lung UK, said: “With millions of homes set to be plunged into fuel poverty this winter, we’re extremely concerned that the nation’s lung health will rapidly deteriorate if the government doesn’t step up to help the most vulnerable.

“We need the government to do more for people with chronic health conditions, and to provide targeted financial support for people on low incomes and living with lung disease. Without these measures, there is the real risk that people will be forced to take major risks with their health this winter.”

A spokesperson for the End Fuel Poverty Coalition, commented: “In addition to supporting households now, government policy has created a cliff edge in April 2023, with the Energy Bills Support Scheme and additional Cost of Living Payments due to end.

“This will result in the numbers of households in fuel poverty rising to almost eight million. The situation will be made worse if benefits are not uprated by inflation and if prescription charges increase.”

Further guidance for local authorities

The group has also suggested a number of extra measures which it says could alleviate the current crisis.

These could include suspending prescription charges for some in England and launching a public information campaign to ensure people are aware of, and signed up to, the Priority Service Register, which is a free service for vulnerable households.

It also wants to see guidance given to local authorities on using the Household Support Fund to deliver free boiler repairs, providing warm packs, and financial support on non-means-tested benefits.

Charities and local authorities could also be given more powers to offer energy advice and be a single local point of access for people who are struggling.