How David Cameron's failure on energy bills is hitting households

While big energy companies are reaping billions in profits, millions of vulnerable households are being pushed deeper into fuel poverty.

Heating or eating? That’s the choice too many families are being faced with today – meeting the soaring cost of keeping their homes warm or putting food on the table. Under this Tory-led government, life for ordinary people is getting harder, with real wages falling in 36 of the 37 months since David Cameron entered Downing Street.

It amounts to nothing less than a crisis in living standards where the rising cost of energy is many households’ chief financial headache. Since 2010, the average family energy bill has shot up by more than £300 and now stands at a whopping £1,400 per year.

Now it has been revealed that millions of vulnerable households are being pushed even deeper into fuel poverty. Figures from the government’s own Fuel Poverty Report – quietly slipped out in the middle of summer recess – show that the fuel poverty gap is expected to increase by £200m between 2011 and 2013. That means that the distance between people’s fuel bills and what they can afford to pay is growing wider. On average the gap is currently £438 and expected to increase to £494. In 2003 it was £248.

This jump is just the latest evidence of the Prime Minister’s failure to stand up for hard-pressed bill payers and get tough with the big energy companies. The news comes hot on the heels of Labour revelations that the energy giants are reaping much greater profits under David Cameron. In 2009, the UK’s big six energy companies turned a profit of just over £2bn. By 2012, that had rocketed to £4bn. Added together, Britain’s six largest energy firms have enjoyed a windfall of £3.3bn in additional profits over the last three years. That’s £3.3bn on top of the profits they were already making.

But while profits climb, this government has scandalously slashed support for people struggling to keep their homes warm in winter. While millionaires are enjoying a huge tax cut, help for people in fuel poverty has halved.

Many of the schemes that the last Labour government used to help achieve a substantial reduction in fuel poverty have been discontinued. The ending of the Warm Front scheme, in particular, means this is the first administration since the 1970s not to have a government-funded energy efficiency scheme to help the fuel poor. And just a few weeks ago, ministers announced they would be abandoning Labour’s target to abolish fuel poverty altogether by 2016. The decision follows a review by Professor John Hills, which has proposed a new way to measure how many people are fuel poor. But the government must not be allowed to get away with using a new fuel poverty definition as cover for cutting support for people most in need.

Neither should a redefinition distract from very real concerns about the government’s two flagship schemes to improve home energy efficiency – the Green Deal and the Energy Company Obligation (ECO). Ultimately, the best way to aid people struggling with their gas and electricity costs is by reducing the amount of energy they use in the first place.

But as of July, only 36 people have signed on the dotted line for a Green Deal package so far. Meanwhile, the government estimates the ECO will lift 250,000 households out of fuel poverty over the next 10 years. That’s 50,000 fewer than fell into fuel poverty last winter alone. What’s more, up to 60% of the ECO funding available could end up going to households who can already afford to pay, rather than those most in need. That’s why Labour has said that support should go to people in fuel poverty before those who can afford to do it themselves.

The government needs to get its priorities right. The most recent statistics show the UK suffered 24,000 excess winter deaths in 2011/12. According to the World Health Organisation, as many as 30% of winter deaths in Europe may be caused by people living in homes that are too cold. Fuel poverty isn’t something that can be ignored.

As summer slowly gives way to autumn and warnings of more energy price hikes this winter, it’s clearer than ever that Britain needs a One Nation Labour government. We need real reform of the energy market and action to help those who will struggle to keep warm this winter.

That will only be possible if we break the dominance of the energy giants. Only a tough new regulator with the power to force energy companies to pass on savings to consumers will protect the public from being ripped off. David Cameron has had over three years to get consumers the fair deal they deserve. It’s time he decided whose side he is on. 

David Cameron speaks at the Clean Energy Ministerial Conference alongside his Energy Secretary Ed Davey on April 26, 2012 in London. Photograph: Getty Images.

Luciana Berger is the Labour and Co-operative MP for Liverpool Wavertree and Shadow Minister for Energy & Climate Change.

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Lord Empey: Northern Ireland likely to be without government for a year

The former UUP leader says Gerry Adams is now in "complete control" of Sinn Fein and no longer wants to be "trapped" by the Good Friday Agreement

The death of Martin McGuinness has made a devolution settlement in Northern Ireland even more unlikely and has left Gerry Adams in "complete control" of Sinn Fein, the former Ulster Unionist leader Reg Empey has said.

In a wide-ranging interview with the New Statesman on the day of McGuinness’ death, the UUP peer claimed his absence would leave a vacuum that would allow Adams, the Sinn Fein president, to consolidate his hold over the party and dictate the trajectory of the crucial negotiations to come. Sinn Fein have since pulled out of power-sharing talks, leaving Northern Ireland facing the prospect of direct rule from Westminster or a third election in the space of a year. 

Empey, who led the UUP between and 2005 and 2010 and was briefly acting first minister in 2001, went on to suggest that, “as things stand”, Northern Ireland is unlikely to see a return to fully devolved government before the inquiry into the Renewable Heat Incentive scheme is complete -  a process which could take up to a year to complete.

“Adams is now in complete control of Sinn Fein,” he said, adding that it remained unclear whether McGuinness’ successor Michelle O’Neill would be “allowed to plough an independent furrow”. “He has no equal within the organisation. He is in total command of Sinn Fein, and that is the way it is. I think he’s even more powerful today than he was before Martin died – by virtue of there just being nobody there.”

Asked what impact the passing of McGuinness, the former deputy first minister and leader of Sinn Fein in the north, would have on the chances of a devolution settlement, Empey, a member of the UUP’s Good Friday Agreement negotiating delegation, said: “I don’t think it’ll be positive – because, for all his faults, Martin was committed to making the institutions work. I don’t think Gerry Adams is as committed.

Empey added that he believed Adams did not want to work within the constitutional framework of the Good Friday Agreement. In a rebuke to nationalist claims that neither Northern Ireland secretary James Brokenshire nor Theresa May can act as honest or neutral brokers in power-sharing negotiations given their reliance on the DUP’s eight MPs, he said: “They’re not neutral. And they’re not supposed to be neutral.

“I don’t expect a prime minister or a secretary of state to be neutral. Brokenshire isn’t sitting wearing a hat with ostrich feathers – he’s not a governor, he’s a party politician who believes in the union. The language Sinn Fein uses makes it sound like they’re running a UN mandate... Gerry can go and shout at the British government all he likes. He doesn’t want to be trapped in the constitutional framework of the Belfast Agreement. He wants to move the debate outside those parameters, and he sees Brexit as a chance to mobilise opinion in the republic, and to be seen standing up for Irish interests.”

Empey went on to suggest that Adams, who he suggested exerted a “disruptive” influence on power-sharing talks, “might very well say” Sinn Fein were “’[taking a hard line] for Martin’s memory’” and added that he had been “hypocritical” in his approach.

“He’ll use all of that,” he said. “Republicans have always used people’s deaths to move the cause forward. The hunger strikers are the obvious example. They were effectively sacrificed to build up the base and energise people. But he still has to come to terms with the rest of us.”

Empey’s frank assessment of Sinn Fein’s likely approach to negotiations will cast yet more doubt on the prospect that devolved government might be salvaged before Monday’s deadline. Though he admitted Adams had demanded nothing unionists “should die in a ditch for”, he suggested neither party was likely to cede ground. “If Sinn Fein were to back down they would get hammered,” he said. “If Foster backs down the DUP would get hammered. So I think we’ve got ourselves a catch 22: they’ve both painted themselves into their respective corners.”

In addition, Empey accused DUP leader Arlene Foster of squandering the “dream scenario” unionist parties won at last year’s assembly election with a “disastrous” campaign, but added he did not believe she would resign despite repeated Sinn Fein demands for her to do so.

 “It’s very difficult to see how she’s turned that from being at the top of Mount Everest to being under five miles of water – because that’s where she is,” he said. “She no longer controls the institutions. Martin McGuinness effectively wrote her resignation letter for her. And it’s very difficult to see a way forward. The idea that she could stand down as first minister candidate and stay on as party leader is one option. But she could’ve done that for a few weeks before Christmas and we wouldn’t be here! She’s basically taken unionism from the top to the bottom – in less than a year”.

Though Foster has expressed regret over the tone of the DUP’s much-criticised election campaign and has been widely praised for her decision to attend Martin McGuinness’ funeral yesterday, she remains unlikely to step down, despite coded invitations for her to do so from several members of her own party.

The historically poor result for unionism she oversaw has led to calls from leading loyalists for the DUP and UUP – who lost 10 and eight seats respectively – to pursue a merger or electoral alliance, which Empey dismissed outright.

“The idea that you can weld all unionists together into a solid mass under a single leadership – I would struggle to see how that would actually work in practice. Can you cooperate at a certain level? I don’t doubt that that’s possible, especially with seats here. Trying to amalgamate everybody? I remain to be convinced that that should be the case.”

Accusing the DUP of having “led unionism into a valley”, and of “lashing out”, he added: “They’ll never absorb all of our votes. They can try as hard as they like, but they’d end up with fewer than they have now.”

Patrick Maguire writes about politics and is the 2016 winner of the Anthony Howard Award.