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.

Photo: Getty
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In the fight against climate change, humanity has a choice of two futures

We must fight man-made climate change, says Patricia Scotland. 

So here we are at this fork in the road. On one path, the risk of a future of chaos. A new world map with miles and miles of stormy ocean where there were once islands and schools and playgrounds, businesses and life.

A globe with acre after acre of arid desert where there were once fertile mountains and valleys, green vegetation and food.

A path where our existence is defined by pandemics and migration crises, as the earth’s population tries to squeeze into the ever-reducing areas of habitable land.

In this reality, all the arguments about progress and advancement are consigned to the pages of our history, the only agenda item at international meetings is survival.

But the other fork is an alternative path. From the window of an airplane, with wings that exactly resemble a bird’s feathers, views of healthy mangrove as far as the eye can see, miles of luxurious, green canopy, interrupted by shimmering blue oceans.

Nature in all its glory and striking colours, thriving. And when it meets a city it doesn’t mind pausing for a while, because this metropolis is powered by geothermal energy, and the office buildings are made of carbon-eating concrete that behave like trees, and the mall is modelled after a termite mound. Every roof is lined with solar panels.

Two sides of the same coin. The first possibility a dystopian apocalyptic vision; the other a reality, already happening, which may just prevent and reverse the existential threat on this precious planet we call home. 

Last month, representatives of Commonwealth governments met with climate change experts, academics and businesses to launch an alternative pathway to addressing climate change, one that moves beyond adaptation, beyond mitigation, to actually reversing the human effects of climate change. 

It proposes to regenerate the environment by taking excess carbon and carbon dioxide (CO2) out of the atmosphere, where it is poisoning our planet, and putting it back in the soil where belongs.

This initiative, Regenerative Development to Reverse Climate Change, in collaboration with the Cloudburst Foundation, creates the potential for climate change to become an opportunity for innovation and sustainable, eco-friendly economic growth.

Strong support from some of the greatest environmental advocates, including Prince Charles, Mary Robinson and Anote Tong, and powerful presentations from some of the finest minds in the climate change arena, gave us the gift of possibility.

World-renowned experts like Paul Hawken, Thomas Goreau, Janine Benyus and Ben Haggard pointed out that these innovations are already happening. And it is quite simple really. For years man has watched nature and copied nature and nature has always led the way. How else did we make human flight happen if we did not copy God's own 'animal aircraft'?

We see it in other ways too, and the truth is that we already have amazing examples of biomimicry – technology that mimics nature. The eco-friendly Eastgate Centre in Zimbabwe is modelled after termite mounds. In China, the dry, barren plains of the Loess Plateau have been regenerated and restored to healthy green land; and we have similar examples of land regeneration in Rwanda.

What I am saying is that the genius of man, which created technologies that have huge benefits for human beings but detrimental effects on our environment, is the same genius we will employ to help us through mitigation and adaption, and ultimately to reverse climate change and stop global warming. But there is a fundamental problem. We have ecologists, scientists, environmentalists and academics coming up with these solutions working in silos.

So what the Commonwealth began to do last October, when we had our first climate change reversal workshop, is to bring them together. We invited 60 experts who are pioneering these approaches to climate change to Marlborough House. They explored how we can create an integrated plan on climate change reversal.

My goal is to be able to offer every Commonwealth country a package of multidisciplinary, multisectoral solutions to this multidimensional problem. Collaboration and political will are key, because we will need to weave the ideas into our curriculum, insert them in our building codes and business regulations and integrate them into our gender, agricultural and environmental policies.

But how will cash-strapped countries fund this? This is where initiatives like our Climate Finance Access Hub comes in. This programme gives countries the capacity to make successful applications for funding from the Green Fund and other climate change financing mechanisms.

We also have to listen to what the captains of industry are saying. At our meeting last month, Paul Polman, CEO of the mega-consumer goods company Unilever, stressed that when businesses consider investment they take into account sustainable development goals.

If there is no justice and peace, if there is hunger and destitution and if they are operating in cities which are not sustainable, on land that might be reclaimed by the sea or deteriorate into desert conditions, they are investing in a venture that will fail. So the regenerative approach does not have to come at the cost of economic growth. Actually, it will boost investment and development.

The Commonwealth has been at the forefront of the climate change discussion since the 1980s when it first became topical. Our milestones include the Langkawi Declaration in 1989 which commits us to protect the environment, and our leaders' summit in 2015, days before COP21, was instrumental in the landmark Paris Agreement on climate change. But the empirical evidence shows us that even at 1.5 degrees, islands will disappear into the ocean.

This November when governments convene at COP23, we will be posing the question: which pathway will you take? But this is not just a question for governments and organisations, it is a question for every single individual on this earth.

So what are we going to teach our children? More than 60 per cent of the 2.4 billion people in the Commonwealth are under the age of 30. How are we going to harness this exuberance and abundant talent and transform them into innovative solutions? How are we going to run our businesses and manage waste and energy in our homes? What path are you going to take? One that risks our future? Or one that is built on the principle that we can work with nature instead of against it to progress and develop?

Patricia Scotland is Secretary-General of the Commonwealth

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