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National Energy Action
Vision: An end to fuel poverty
Mission: To ensure that everyone in the UK can afford to meet their energy needs in the home, sufficient for good health, comfort
and wellbeing
National Energy Action
UK wide (in Scotland in partnership with Energy Action Scotland)
4 main areas of action:
Campaigning and policy analysis Education and training Evaluating new solutions and products Engaging at a local level to deliver programmes to tackle fuel
poverty
NEA considers that energy efficiency is the main sustainable solution to tackling fuel poverty
Fuel Poverty
the need to spend over 10% of household income on fuel costs to maintain adequate warmth for health and comfort
20% - severe fuel poverty
Factors affecting fuel poverty: cost of fuel level of household income physical quality and characteristics of the dwelling degree of vulnerability of the occupants of a
dwelling
Who is affected? Fuel poverty can affect anyone!
But most prevalent among:
vulnerable households including pensioners people with children under the age of 16 those on benefits people with disabilities, and people suffering long term illness Rural areas particularly affected
Currently affects over 7 million UK households (CSE/Consumer Focus Now Cast data)
Fuel Poverty Statistics
COUNTRY
2010 2011Total
Households In FP
PercentageTotal
Households in FP
percentage
ENGLAND 3,963,923 18.4%
5,314,655 24.7%
WALES 331,983 26.2%
425,161 33.5%
SCOTLAND 733,010 31.5%
938,171 40.3%
NORTHERN IRELAND
302,310 43.8%
358,877 49.4%
GREAT BRITAIN 5,028,916 20.0%
6,677,987 26.6%
UK 5,331,226 20.6%
7,036,863 27.2%
Welfare Reform – Changes
Universal Credit
Personal Independence Payments
Social Fund
Housing Benefit
Council Tax Benefit
Benefit Cap
Benefit Appeal Rights
Welfare Reform - Universal Credit
A single means tested benefit to people of working age Universal credit will be paid monthly, to one individual in a household All benefits will be paid to the claimant, including rent which previously was
paid to a landlord Claims and reporting of changes will primarily be made online
Replaces existing means-tested benefits including;
Income-based JSA Income-related ESA
Income Support Housing Benefit
Working Tax Credit Child Tax Credit
Implications for fuel poverty
Some examples: -
A household with rent of £100 a week and a spare bedroom will lose £14 a week.
A household in which an individual loses one of the lower rates of
Disability Living Allowance will be at least £20.55 a week worse off.
Someone has been claiming long-term Incapacity Benefit who is found to be fit for work will lose £99.15 a week – if they are
eligible for Jobseeker’s Allowance they will get at least £28.15 a week less.
Impacts – Eat or Heat?
Food poverty - 120% rise in numbers turning to foodbanks in the last 12 months – Trussell Trust Foodbank charity Biggest ever increase in Welsh foodbank use Over 35,000 people in Wales have received at least 3 days emergency food from Trussell Trust foodbanks (over last 12 months) - more than twice the number helped in 2011-12
“It’s shocking that people are going hungry in 21st century Britain.’”
Implications for fuel poverty
Households in Wales will lose 4.1% of their income as a result of the tax and benefit reforms to be introduced by 2014-15
- compared with a UK average loss of 3.8% (Institute for Fiscal Studies)
Households receiving benefits - already on relatively low incomes and at greatest risk of fuel poverty
Numbers in fuel poverty likely to increase substantially - AND increase in the severity of fuel poverty
A number of energy efficiency programmes determine eligibility for assistance via receipt of benefits
Households who lose eligibility for benefits could also lose eligibility for the Warm Home Discount
Green Deal and ECOKey Concerns
The costs of the ECO will be met through a levy on domestic energy bills, resulting in increased costs for many vulnerable people already struggling to heat their homes
Those households that do not take up measures (or are unable to) will see their bills increase
There are also concerns around the reduction in funding for fuel-poor households with Wales, England and Scotland all competing for these limited ECO resources
Majority of low-income and vulnerable households will only be able to access the benefits of energy efficiency through Green Deal Finance
Concern that financially disadvantaged households may be directed towards a Green Deal Finance Arrangement
How well ECO funding and entitlement is signposted at the assessment stage is still unknown, how this will be tracked?
Green Deal and ECO
How can we ensure equitable access and delivery to rural and deprived areas and to low-income households?
Concerns around consumer protection Households that under-consume or under-occupy potentially faces
significant increases in their energy bills if they take out a Green Deal finance arrangement
Not clear whether the Green Deal Ombudsman will monitor instances of disconnections resulting from default on a Green Deal charge or where existing fuel debt problems have been compounded by a Green Deal charge
Collective Switching
Can collective switching help to alleviate fuel poverty? Wales collective switching events – North and South
Wales Which? “Big Switch” campaign, PeoplesPower, Cornwall
Together Led by local authorities, political parties and community
groups Local authorities being encouraged to take the lead Brings together groups of consumers to buy gas and
electricity in bulk, thereby accessing discounts that aren’t available to individuals
Relatively new concept in the UK - schemes have operated in some European countries for several years, including Belgium and Holland
You find out about the idea and decide to take part
You sign up and give your information
Suppliers compete to make best offer to group. The deal is offered to you
You decide whether or not to take up the deal and switch
You switch to a better deal (or don’t)
Registration
Competition
Consider offer
Managed switch
Collective Switching
Wales has some of the lowest levels of switching energy supplier in the UK (Jan 2012 Consumer Focus Wales report)
More than 2 in every 5 Welsh consumers have never switched their energy supplier
Consumer Focus research into collective switching: High levels of distrust of energy suppliers & also indifference Too complicated/difficult to compare tariffs/suppliers Need for different promotion channels for different target
audiences lower income groups/irregular or non-switchers potentially have
most to gain from participation Need for support, explanation & reassurances given throughout
process Final Wales & GB reports due shortly
