Heating bills will force UK’s poorest families into debt

The cold snap will push the UK's poorest families into debt as they are forced to borrow money to pay their heating bills.

Friday 8 January 2010

“We’re really concerned about how the poorest families are coping with this cold snap,” said Fergus Drake, Save the Children’s UK Director. “Heating and winter clothes are expensive and, for families on a tight budget, they simply cannot afford to keep warm. …Many families are choosing between sitting in a freezing cold house or getting into debt to keep warm, pushing them further into poverty.”

A survey conducted by YouGov and Save the Children found that over a quarter (27%) of the UK’s poorest families (those with an income below £12,000 a year) said they will have to borrow money in order to pay bills such as gas and electricity. Over half (60%) said that they would cut back on heating, or limit it to a few a hours a day to afford to get by this winter. A further 22% said that they were going to have to borrow money to buy winter clothing, including warm jumpers, coats and shoes.

The government currently provides a £25 per week ‘Cold Winter Payment’ to families on low incomes with children under five or disabled children on condition that the temperature falls below 0 degrees seven days in a row.

With such restrictions, this payment will not help many families facing fuel poverty. Save the Children wants to see a winter fuel payment of £200 per annum guaranteed to all low income families living with disabled children or children under five. Only then will the UK's most vulnerable families be protected from the cold and from fuel poverty and the consequences of debt.

“Everyone’s going to be dreading receiving their heating bill after this cold snap, but none more so than families who are already struggling to afford to get by this winter,” said Drake. “We want to see the winter fuel allowance extended to the UK’s most vulnerable families so they can afford to keep warm this winter and every winter, without having to get into debt.”