Blog: Fuel poverty – not just about the elderly
Britain’s poorest families are set to miss out on support with their energy bills, putting the well-being and health of children at risk, the charity Save the Children has warned this week. The charity commissioned a survey of more than 1,000 parents to examine how the cost of energy affects family budgets. 54% of all parents are worried that their children’s health would suffer because their house is too cold this winter, whilst almost a third of all parents on the lowest incomes feared they would not be able to afford their winter energy bills, even if they cut back on other essentials such as food.1
Our policy summary on fuel poverty describes the likely health impacts of inadequately heated housing, including higher mortality risk in the elderly as well as increased circulatory and respiratory disease. Although households with individuals aged over 60 make up the single largest group living in fuel poverty – spending more than 10% of their income to attain an adequate level of warmth – 10 % of households with at least one dependent child were also classed as being in fuel poverty in 2009.2 Homes that are under-heated have an additional negative impact on the health of young children, including lower than average weight gain in infants, higher hospital admission rates, and hampered physical development.3
Currently, individuals aged over 60 receive a non-means-tested winter fuel payment of between £100 and £300, depending on their living circumstances.4 In addition, the Warm Home Discount Scheme, funded by the major energy companies, automatically provides a £120 rebate on electricity bills for those customers who are in receipt of pension credits.5 Other customers in vulnerable groups, such as those with children, may be eligible to apply for a rebate on a first-come, first-served basis but each electricity supplier has different eligibility criteria. Low-income families often pay more for energy already because they lack internet access and cannot seek out information about the best deals from price comparison websites. Individuals with restrictions on their bank accounts, or without bank accounts at all, also cannot take advantage of the cheapest direct debit tariffs.1
Macmillan Cancer Support has also recently highlighted the risk of fuel poverty amongst cancer patients, 40% of whom incur a drop in income as a result of their illness at a time when they face increased costs, including fuel bills. 60% of patients with cancer have incurred higher energy bills since their diagnosis and 1 in 4 struggle to pay their energy bills. In 2011, Macmillan gave £2,548,563 in one-off payments to 12,669 cancer patients to help with fuel costs. Patients with cancer aged under 60 are not eligible for winter fuel payments or the Warm Home Discount Scheme.6
As our policy summary noted, domestic fuel prices are predicted to increase further over the next few years and it seems inevitable that there will also be a rise in the number of households living in fuel poverty, with its associated health impacts. The government launched a Cold Weather Plan in November 2011, part of which included making an extra £10 million available to support existing Government schemes for those at risk of fuel poverty.7 However, the Warm Home Discount Scheme only goes automatically to those on pension credits, whilst the winter fuel payment remains non-means-tested. These most recent data raise questions about whether the money is being spent in the most effective way: more needs to be done to better target support and reduce the number of children and other vulnerable individuals exposed to the effects of fuel poverty.
Blog by: Lancet UK Policy Matters Team
References
1. Save the Children (2012). Rising Energy Costs: The Impact on Low-income Families. Available at http://www.savethechildren.org.uk/resources/online-library/rising-energy-costs-impact-low-income-families Accessed 5 January 2012
2. Department of Energy and Climate Change (2011). Annual Report on Fuel Poverty Statistics 2011. Available at http://www.decc.gov.uk/assets/decc/Statistics/fuelpoverty/2181-annual-report-fuel-poverty-stats-2011.pdf Accessed 5 January 2012
3. Marmot, M. (2011) The Health Impacts of Cold Homes and Fuel Poverty. Friends of the Earth
7. http://mediacentre.dh.gov.uk/2011/11/01/get-ready-for-winter/
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