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.

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
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Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

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