Deepening fuel poverty; can you afford to keep warm?

Posted by Samia Robbins on January 18, 2009
Energy, UK

Is the Government failing to protect the most venerable in our society, amidst the coldest winter since 2001?  Millions of customers face big fuel bills in forthcoming months and Age concern has accused the UK Government of failing to protect the poorest and most vulnerable in one the UK’s coldest winters in decades, with freezing temperatures plummeting to -8C.

www.dailymail.co.uk)

(Source:www.dailymail.co.uk)

-An independent think tank has predicted a 40% increase energy costs since this time last year, and requests that direct intervention by the government to tackle high energy costs is needed.  This situation is worsened by the Russian fuel crisis, which is instilling greater uncertainly and sharp increases in prices across Europe.

Alongside high fuel prices, The National Institute of Economic and Social Research has predicted that the UK economy has shrunk by its fastest rate since 1980′s – decreasing at a rate o 1.5%.    High fuel prices combined with a weak economic climate means that consumers will have to be even more careful when spending money of basic necessities such as food, gas and electricity.

So what is the government doing to protect the UK people in a situation of fuel poverty?  The Government has publically asked energy companies to reduce their prices to consumers as soon as possible.  Energy Companies say that they are not profiteering in the current economic climate and will reduce the fuel prices in to consumers only when it is appropriate to do so i.e. when the market forces dictate, not the government.   Currently, energy companies have predicted a 15% price reduction by September or October 2009.  Arguably, this time lag in the reduction of energy prices to people in the UK does not come cheaply. 

The Government’s attempts to offer a ‘Winter Fuel Payment’ to help people aged 60 and over with the costs of keeping warm this winter has also faced criticism from the chief executive of National Energy Action, Jenny Saunders, who recommends that ” the winter fuel payment be extended to the 1.6m families with children, or where there is a member of the family disabled.”  (Source: BBC News)

As millions of customers face big bills in forthcoming months, the likelihood of benefiting from any cheap fuel prices is just too far in the distance.  Age Concern, a UK Charity who looks after the needs and interests of older people, say that individuals are now forced to think twice when they turn on the gas or the lights.   With a continuing cold climate and high energy prices, families will have to decide will you be eating, or keeping warm.

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Comments

  • Avatar of Nyla Sarwar

    Interesting post. There have been recent discussions in parliament about extending the winter fuel payment to other ‘fuel poor’ in society – including the poorest families, spending more than 10% of their income on energy needs, as the elderly are not the only ones at risk here.

    The Russian crisis also highlights the need to consider alternative technologies to increase security of supply, and energy policy has a major role to play in driving this ambition.

    January 20 2009
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      January 18 2009
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