The UK Poverty Rip-Off
Low income families are still paying more than wealthier families for basic goods and services - and energy bills are the worst offender.
Everyday necessities such as bills and insurance are costly for everyone - but for too long those on lower incomes have had to pay extra for the same energy bills, credit, cookers and other goods than wealthier families often because they do not have access to the best deals. This is simply unfair.
For a typical low income family, the extra they pay - called a poverty premium - has risen from an average of £1,000 in 2007 to £1,280 or more in 2010.
Most significant has been the rise in energy bills – and the health of low income families ultimately pays the price. The government's Warm Home Discount Scheme will offer rebates to some, but not all those who need it.
Around 20% is the rising cost of gas and electricity
Average bills for poorer families are £1,134 per year, compared with £881 for wealthier families (before the latest hikes in heating prices are even taken into account). It's feared that by 2020, the energy poverty premium could be as much as £1,800 per year.
Many parents have to choose between a hot meal or heating
Cold living conditions increase children’s susceptibility to illness and damages respiratory health. Education is also affected if there is no warm, peaceful space to do homework.
“You have to prioritise heating because you have to have the house warm enough for kids.” Lana, mum of two.
The government Warm Home Discount scheme leaves the poorest out in the cold
Sally Copley, Head of UK Policy, Save the Children, said: “The decision by the government on who should get help with their fuel bills has left the UK's poorest families out in the cold. While we welcome the decision to help vulnerable pensioners, we are deeply concerned that the UK's poorest families have not been automatically awarded the rebate. Whether or not they get it is now in the hands of the fuel companies.”
Stop the UK poverty rip-off
The Warm Home Discount consultation was an opportunity for the government to help the poorest families get a fairer deal on their fuel bills. The government could have taken the opportunity to extend a new rebate worth £120 per year to the poorest families - which would have been a lifeline for families in desperate need of any help they can get to provide a warm home for their children. Research shows that respiratory problems are more than twice as likely in children who live for three years or longer in homes that are not heated properly.
A review of fuel poverty
Fuel poverty is defined as a household spending more than 10% of its income on fuel to maintain a warm home (usually 21 degrees for the main living area, and 18 degrees for other occupied rooms). In 2001, the government published its Fuel Poverty Strategy for England after 2008 figures showed that 3.3m households in England were living in fuel poverty.
At the Spending Review in October 2010 the government announced it would commission an independent review to look at the fuel poverty target and definition. Professor John Hills will take on the review.
Listen to local children aged 9 and 10 from the In My Backyard Programme tell Chris Huhne Secretary of State for Energy and Climate Change that he must do more to help the poorest families with the cost of their energy bills.