Huge winter energy bills leave four in ten cutting back on basics
New research from Consumer Focus shows that more than four in ten of the population (44%) are cutting back on essentials such as food in order to afford their winter energy bills.1 Consumer Focus is highlighting the misery being caused to millions of Brits by huge winter gas and electricity bills which are now hitting doormats around the country.
The new research shows that a combination of high fuel prices and a cold winter has left two-thirds (65%) of people across Britain shocked by bigger energy bills than expected. At the same time almost three in five (59%) think that the recent paltry energy price cuts will make little or no difference to their bills.2
With the poorest consumers3 faring the worst – almost three quarters (72%) have had a larger winter energy bill than expected and more than six in ten (61%) are cutting back on basics to make ends meet - Consumer Focus is calling for MPs to help those living in fuel poverty4 by supporting the Fuel Poverty Bill at its upcoming second reading (Fri 20 March).
Jonathan Stearn, Consumer Focus energy expert, said:
“It is disgraceful that huge winter energy bills are causing such misery for so many of the most vulnerable families, pensioners and disabled people. Recent meagre energy price cuts will barely dent fuel poverty levels, but if the Fuel Poverty Bill before Parliament this Friday is passed it could help millions of those struggling to make ends meet. Decisive action by MPs is needed to support this Bill to keep the poorest homes warm.”
The Fuel Poverty Bill, which will be introduced by David Heath MP, could help lift millions of the poorest households out of fuel poverty. It aims to ‘fuel poverty proof’ homes – making them as energy efficient as a home built today – reducing energy bills by up to 70% and reducing carbon emissions. It would also ensure that energy companies provide the lowest price deals (social tariffs5) for vulnerable households until their homes are improved.
To find out more about the Fuel Poverty Bill and how to contact their MP, people can visit www.endfuelpoverty.org.uk
ENDS
FACTFILE:
· There are currently around 5.4 million households living in fuel poverty in the UK and up to 4 million in England.
· The average annual direct debit gas and electricity bill is currently £1,188. Even after all the recent price cuts come into effect the average bill will still be £1,151.
· Consumer Focus estimates that although the current energy price cuts could lift up to a maximum 200,000 households out of fuel poverty in the UK, rising unemployment figures will lead to a similar number being plunged into fuel poverty.
Notes to editors:
For more information please contact the Consumer Focus media team on 020 7799 8000
1. Consumer Focus/ICM research March 2009. Consumer Focus commissioned ICM Research to interview a random sample of 1004 adults aged 18+ by telephone between 13-15 March 2009.Interviews were conducted across the country and the results have been weighted to the profile of all adults.ICM is a member of the British Polling Council and abides by its rules.Further information can be found at http://www.icmresearch.co.uk/
2. Ibid.
3. Those in social grade DE polled by ICM.
4. A household is considered to be in fuel poverty when it needs to spend 10% or more of its income on energy bills to keep warm and meet their other energy needs.
5. Energy companies offer discounted tariffs to vulnerable households under their social assistance schemes. Currently these are not always the cheapest tariff available and there is also a wide variation in who is eligible. In order for a social assistance scheme rate to be deemed a ‘social tariff’ Ofgem guidelines require it to be at least as cheap as the lowest tariff offered by the company in that area (usually an online direct debit). The Fuel Poverty Bill would make the government standardise eligibility for these rates and require them to be the lowest tariff supplied by the energy firms – so all suppliers would provide social tariffs giving the best deal for poorest customers.
· Broadcast producers please note – spokespeople are available for interview.
