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.

Kevin Doncaster/Creative Commons
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For 19 minutes, I thought I had won the lottery

The agonising minutes spent figuring out my mistake paired beautifully with hard, low wisdom tooth throbs.

Nineteen minutes ago, I was a millionaire. In my head, I’d bought a house and grillz that say “I’m fine now thanks”, in diamonds. I’d had my wisdom tooth (which I’ve been waiting months for the NHS to pull the hell out of my skull) removed privately. Drunk on sudden wealth, I’d considered emailing everyone who’s ever wronged me a picture of my arse. There I was, a rich woman wondering how to take a butt selfie. Life was magnificent.

Now I’m lying face-down on my bed. I’m wearing a grease-stained t-shirt and my room smells of cheese. I hear a “grrrrk” as my cat jumps onto the bed. He walks around on my back for a bit, then settles down, reinstating my place in the food chain: sub-cat. My phone rings. I fumble around for it with all the zeal of a slug with ME. Limply, I hold it to my ear.

“Hi,” I say.

“You haven’t won anything, have you” says my dad. It isn’t a question.

“I have not.”

“Ah. Never mind then eh?”

I make a sound that’s just pained vowels. It isn’t a groan. A groan is too human. This is pure animal.

“What? Stop mumbling, I can’t hear you.”

“I’m lying on my face,” I mumble.

“Well sit up then.”

“Can’t. The cat’s on my back.”

In my defence, the National Lottery website is confusing. Plus, I play the lottery once a year max. The chain of events which led me to believe, for nineteen otherworldly minutes, that I’d won £1 million in the EuroMillions can only be described as a Kafkaesque loop of ineptitude. It is both difficult and boring to explain. I bought a EuroMillions ticket, online, on a whim. Yeah, I suffer from whims. While checking the results, I took a couple of wrong turns that led me to a page that said, “you have winning matches in one draw”. Apparently something called a “millionaire maker code” had just won me a million quid.

A

Million

Quid.

I stared at the words and numbers for a solid minute. The lingering odour of the cheese omelette I’d just eaten was, all of a sudden, so much less tragic. I once slammed a finger in a door, and the pain was so intense that I nearly passed out. This, right now, was a fun version of that finger-in-door light-headedness. It was like being punched by good. Sure, there was a level on which I knew I’d made a mistake; that this could not be. People don’t just win £1 million. Well they do, but I don’t. It’s the sort of thing that happens to people called Pauline, from Wrexham. I am not Pauline from Wrexham. God I wish I was Pauline from Wrexham.

Even so, I started spending money in my head. Suddenly, London property was affordable. It’s incredible how quickly you can shrug off everyone else’s housing crisis woe, when you think you have £1m. No wonder rich people vote Conservative. I was imaginary rich for nineteen minutes (I know it was nineteen minutes because the National Lottery website kindly times how much of your life you’ve wasted on it) and turned at least 40 per cent evil.

But, in need of a second opinion on whether or not I was – evil or not - rich, I phoned my dad.

“This is going to sound weird,” I said, “but I think I’ve won £1 million.”

“You haven’t won £1 million,” he said. There was a decided lack of anything resembling excitement in his voice. It was like speaking to an accountant tired of explaining pyramid schemes to financial Don Quixotes.

“No!” I said, “I entered the EuroMillions and I checked my results and this thing has come up saying I’ve won something but it’s really confusing and…”

Saying it out loud (and my how articulately) clinched it: my enemies were not going to be looking at butt selfies any time soon. The agonising minutes spent figuring out my mistake paired beautifully with hard, low wisdom tooth throbs.

“Call me back in a few minutes,” I told my dad, halfway though the world’s saddest equation.

Now here I am, below a cat, trying to explain my stupidity and failing, due to stupidity.  

 

“If it’s any consolation,” my dad says, “I thought about it, and I’m pretty sure winning the lottery would’ve ruined your life.”

“No,” I say, cheese omelette-scented breath warming my face, “it would’ve made my life insanely good.”

I feel the cat purr. I can relate. For nineteen minutes, I was happy too. 

Eleanor Margolis is a freelance journalist, whose "Lez Miserable" column appears weekly on the New Statesman website.