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Fuel poverty at endemic levels
Dire times ahead as the collective energy debt in the UK now amounts to £3.1 billion, writes KENNY MACASKILL

FUEL COSTS remain the issue of the moment. The energy price cap may have slightly reduced the scandalous prices but paying the bills is still a mountain to climb for many. It’s resulted in the perversity of an energy-rich land seeing so many of its people in fuel poverty. 

There’s the added absurdity that many of those parts closest to the oil and gas fields, in the Highlands and Islands of Scotland, powering up the British economy and hosting the on and offshore wind bonanza, face fuel poverty rates near or above 50 per cent. 

But it’s not just finding the wherewithal for current bills but the debt they already face that’s now the issue for so many. That’s because the collective energy debt in the UK now amounts to £3.1 billion. Yes, you read it right, that’s billion not million. 

And it’s worsening. National Energy Action, the fuel poverty charity, states that the average debt has increased by around 50 per cent over the last 12 months and that the number of households in debt has risen by 20 per cent. 

So before even worrying about how to meet current bills, never mind winter ones to come, there’s fear of what’s already been incurred and it’s hanging like a noose around the neck of millions; and this time it is millions.

National Energy Action again estimating that even with the new price cap levels, about six million households in the UK will be in fuel poverty. 

There’s no sign of any salvation on the horizon for most. Arrangements to pay have only been reached with a third of that debt. Many may struggle to stick to that agreement and what happens then?

Already over £2 billion is what’s described as “arrears.” That means no repayment plan, struggling to meet their current bills, and with no ability to pay what they’re already owing. What are they supposed to do? 

We’re in spring and summer approaches. But climate change has also meant that the ability to turn off the heating after winter has gone. Parts of Scotland have just had the wettest April on record, and with the rain, comes damp and cold.

Summer isn’t guaranteed to be sunshine and smiles for all. Rather it’ll be a chill they face whether at the temperature then or the thought of the cold that’s going to return as the seasons turn.

Those are also just big numbers and statistics, what do they mean for ordinary folk? In truth they mask the reality of what it means for those who are suffering. Let’s put some flesh on those bare bones.

Citizens Advice Scotland advise that the the average fuel debt of someone seeking help from them amounts to £2,300. That’s just the average and for some it will be even more. Moreover, many presenting for help with fuel bills will have multiple debts, as they seek to juggle their limited finances to meet all their outgoings.  

Scope, the disability charity, has noted that referrals to its disability energy support service last year numbered over 7,000 with 364 in debt and the average sum owed was more than £1,100.

Let’s also remember that it’s calculated that disabled households need an additional income of £975 per month to match a non- disabled households standard of living.   

Pensioner poverty has also returned with a vengeance. Age Scotland noting that of any household group, pensioners in Scotland have the highest rates of fuel poverty with 36 per cent in that plight. Even more alarmingly and yet also scandalously, 24 per cent are classed as in extreme fuel poverty. 

What does that mean for the lives of so many of all ages? With austerity we’ve got to know of that invidious choice facing so many of heating or eating, as a fuel crisis was superseded by a cost-of-living crisis. Yet, often hunger and cold are not a choice between one or the other but both haunt many. 

It also goes far beyond that, because fuel poverty is not just about access to heating but to power. It’s not simply that the thermostat can’t be turned on yet alone turned up. It’s access to other vital aspects of modern life. 

What’s often forgotten is that it’s also the ability of the mum to switch on the washing machine to keep her kids clean and tidy. It’s the opportunity of a parent to power up the school-supplied lap-top to ensure their kids can achieve their full educational potential. It’s even the need for the worker to charge their phone to ensure access to employment or even benefits.

Rather than seeking to further humiliate the sick and disabled, Rishi Sunak would be better supporting access back into work.     

It’s even about life itself. Heating is even more necessary when suffering from ill health or recuperating. The cold provides an even greater chill to those unwell.  But it’s not just access to a warm home but even to power for lifesaving equipment. Dialysis or oxygen machines don't run on fresh air but need plugged in. That can send bills soaring.

Of course, there’s now that euphemism of self-disconnection. As weasel a phrase as “legitimate targets” or “collateral damage.” It’s not a voluntary choice but imposed by financial hardship. Those in debt aren’t the feckless or ne-er do wells. It’s ordinary people who just don’t have enough to live on. 

For there’s an additional perversity that the privatised energy market sees those with least pay most. Standing charges have doubled over the last five years, now amounting to an average of £300 simply for connection and again with many northern or remote areas paying most.

It’s an energy poll tax, seeing the billionaire with his swimming pool paying the same as the widow and kids in a council flat. 

Tariffs are equally unjust. Those able to pay by direct debit facing lower charges than those left on standard credit. And while pre-payment meter tariffs are now lower once arrears and standing charges are added, many have a huge sum to pay before even accessing a flicker. 

The Tory boasting of the latest Energy Price Guarantee was not only inadequate but even contained a sleight of hand. No surprise there though. For they reduced the assumed average household fuel consumption based on assumed better insulation. Sure, if you’re fortunate to live in a nice new house that is but not if you’re still in an old council, social tenancy or even private landlord-owned one.    

So, what needs to be done?

First, a social tariff is essential. Those poorest and most vulnerable must be afforded access to heat and power.

Second, the moratorium must be reinstated on forced installation of pre-payment meters.

Third, the Warm Home Discount needs improved and targeted. At £150, it’s only a tenner more than before the crisis. It’s just not enough for those in need.

Finally, there needs to be a debt write-off scheme. After all it was done for banks and even PPE fraud. It’s time it applied to those who just can’t pay for what’s a life essential. 

We just can’t allow the perversity of fuel poverty in an energy-rich land to continue.       

Kenny MacAskill is the Alba Party MP for East Lothian.

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