Sunday, July 17, 2011

The government must tackle fuel poverty now | Luciana Berger

Rising prices have left millions struggling to heat their homes while the government cuts schemes to support them

This week the department for energy and climate change (DECC) published figures which highlighted an increase in fuel poverty. It's worth bearing in mind that the way the government calculates these figures means the statistics are actually two years old. In reality, the situation is much worse. At the start of the month, uSwitch published research showing that 6.3m homes are paying 10% or more of their household income towards their energy bills. That means almost a quarter of all households (24%) find it difficult to heat their homes.

These figures should be a wake-up call to the nation. Fuel poverty has historically been an abstract concept to most of us. Now it's become a mainstream concern. Most worryingly, the uSwitch figures don't take into account the huge price rises announced recently by Scottish Power and British Gas, which are yet to hit household budgets. With the rest of the big six expected to follow suit, soon well over a quarter of us will be struggling to stay warm during the winter months.

Behind the statistics are the stories of the real people whose lives are made a misery. Anyone who watched the recent BBC documentary Poor Kids will have seen the haunting footage of Sam, 11, who said: "When the gas runs out, the whole house is freezing." Friends of the Earth have been collecting stories from people living in fuel poverty as part of their Cold Times campaign, such as that of Elizabeth, a student in Stoke-on-Trent, who says: "We can't afford to keep the heating for more than two hours per day ? not long enough to keep us warm ... Often we wake in the morning and can see our own breath."

Or Michael from Swansea, who tells us: "I find it impossible to keep warm ? and in addition I suffer with osteoarthritis .... We've just come through one of the worst cold snaps in recent history ? I was ill for most of it." I hear many similar stories in my own constituency, particularly from students. And these gut-wrenching accounts set to increase when the winter comes because of runaway energy prices and inefficient housing stock.

The government isn't doing enough to tackle these problems. Chris Huhne may not control the wholesale energy price, but there are steps he and his department can take right now to reform the energy market and help those struggling to heat their homes. First, it's vital that we end unclear, confusing bills so consumers can shop around for the best deal.

Alongside this, we need 100% transparency on how energy bills are calculated, so huge price rises can't be hidden behind rising wholesale prices. Most importantly, we need more competition in the energy market to drive down the cost of electricity and gas bills.

That's why Labour is calling for a Competition Commission inquiry into the big six energy companies and how they dominate the market. With public trust in energy companies at an all-time low, only a thorough independent investigation can restore it.

Since May, the government has compounded the effects of rising bills by systematically removing support for fuel-poor households, from scrapping Labour's Warm Front scheme, which provided 21st-century heating, to cutting winter fuel payments by up to �100. For the first time since the 1970s, the British government isn't offering grants to help. The Green Deal scheme that is meant to help is now delayed, and concerns have been raised it may leave many without adequate support.

We urgently need to curb price rises and tackle the menace of fuel poverty. Labour's approach would mean fairer energy bills and extra support for those who need it. The government is withdrawing support just when it is most needed. It should think again.


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Source: http://feeds.guardian.co.uk/~r/theguardian/commentisfree/rss/~3/BDUTKTi3wEQ/fuel-poverty-government-rising-prices

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