Help with energy bills: experiences in Wales

Our new report shows that energy suppliers’ support schemes are not reaching everyone who needs them

As the cost of gas and electricity has soared, the number of people struggling to make ends meet has increased dramatically. With energy prices set to increase again in October, there are growing concerns about how people will cope, with some facing another winter of having to choose between heating and eating.  

To help people struggling with their gas or electricity bills, energy suppliers have developed various support schemes. These include small grants, writing off debt and providing items such as heated blankets. New research by the Bevan Foundation reveals that this support is not getting to everyone who needs it. This new report provides an overview of why this is the case and sets out measures that could be taken in the short and long term.  

Recommendations for change

In the short term it argues that: 

1. The UK Government and Ofgem should work together to require energy suppliers to take steps to better promote the support schemes that they currently offer. 

2. The UK Government and Ofgem should work together to require energy suppliers to take steps to improve their application processes. 

3. The UK Government and Ofgem should work together to require energy suppliers to take measures to ensure greater transparency with regards to each support scheme. 

Energy suppliers should work with the advice sector to better understand their needs to ensure greater co-operation.

Broader action on fuel poverty is needed 

Even if these steps were taken, it is unrealistic to expect energy supplier schemes to solve issues around fuel poverty by themselves. These measures therefore must be taken alongside longer-term actions. Among the actions that should be taken are: 

1. The UK Government should put in place an Essentials Guarantee so that the value of Universal Credit is sufficient to provide everyone with a level of income that covers the cost of essentials including energy.
2. The Welsh Government should increase investment in its Warm Homes Programme so that it can operate at greater scale to improve home energy efficiency and reduce fuel poverty. Whilst the new iteration of the programme includes many welcome measures, based on current estimates it will take between 120 and 380 years for the programme to achieve its objectives. 
3. The UK Government, Ofgem, and energy suppliers should work together to increase affordability in the energy market for those on the lowest incomes. Amongst the measures that should be considered is the introduction of a social tariff so that people on the lowest incomes can access gas and electricity at more affordable rates.  

Pages: 18

Format: PDF

Language: English

Cost: Free

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