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A pretty winter picture ... and a pretty high fuel bill

THESE are difficult times. Governments, businesses, charities – everyone – is staring down the barrel of budget cuts. So is this the time to ask whether can we afford to eradicate fuel poverty?

After all, it’s not a cheap business. Neither is it easy. Rising fuel prices and the impact of the economic crisis on domestic income mean eradicating fuel poverty has become more difficult over the last decade.

It is estimated that a quarter of households in Wales experience fuel poverty. That’s 320,000 households having to spend 10% or more of their income on energy bills so their homes are heated adequately.

As terrible as that is, this is worse. For every 1C that the temperature drops, the rate of mortality rises by 1.4%. According to figures released yesterday, there were 2,500 ‘excess winter deaths’ – a 74% increase on the previous year. The Welsh Government’s draft fuel poverty strategy states that there is a direct relationship between cold weather and death. Given that many of these deaths take place days and even weeks after the frozen weather strikes, the current cold snap is likely to have tragic consequences.

Rates of fuel poverty in Wales are higher than the UK average, too. Lower average incomes, less energy efficient housing stock, higher energy costs, and higher numbers off the gas network become the four horsemen of the fuel poverty apocalypse. Because of these factors, a dozen organizations have come together to form the Fuel Poverty Coalition, to argue passionately that no-one should have to live in a cold home.

This afternoon in the Senedd, Assembly Members will debate a motion that asks them to support the Fuel Poverty Charter, a series of policy measures designed to ensure that fuel poverty will be eradicated in Wales. You can see the full Charter here, but at the Charter’s heart are three basic appeals:

- That the Welsh Government should draw up a detailed action plan with timeline, showing what it’s going to do and when;

- That there should be a system of support for those in fuel poverty until such time as it is eradicated;

- That all agencies – UK government, Welsh Government, local government, charities, energy regulators, and energy companies – must work together if we are to win the war against fuel poverty.

The Welsh Conservatives have set aside some of their time in the Senedd to ensure the debate takes place, but there is widespread support in all parties for the aims of the fuel poverty coalition. Some 24 AMs have signed the charter in person, and a similar number have signed up to a statement of opinion along the same lines. There is equally strong support from the AMs who make up the cross party group on fuel poverty.

The Environment Minister Jane Davidson has also supported the group’s actions so far – receiving the Charter at our launch, praising the work of the coalition, and working to improve the government’s strategy and impact on fuel poverty. The Welsh Government has set ambitious targets and the forthcoming Fuel Poverty Strategy has the potential to transform the lives of many in the worst circumstances. The concentration of resources on the most vulnerable is a really important and welcome step.

Both the UK and Welsh Governments have a legal duty under the Warm Homes and Energy Conservation Act to do everything reasonably practicable to eliminate fuel poverty. That joint duty is important, because we recognise that the Assembly cannot do this on its own. The UK government still holds some of the key levers that could lift people out of fuel poverty. The benefits system, tightening up social tariffs, taking a firmer line with the energy companies – these are just some of areas where Westminster has a key role to play.

Yet the average household energy costs now exceed £1,200 per annum – twice as much as the average bill five years ago. This current cold snap will have done nothing to reduce costs, with many households forced to turn up the thermostat in the past two weeks.

But that option isn’t available to everyone. Some – particularly those on fixed incomes – don’t have enough money to leave the heating on longer or turn it up higher.  According to the regulator Ofgem, in 2009 there were 54,806 households in debt to electricity suppliers and 47,329 in debt to gas suppliers in Wales. Consecutive days of temperatures skating around freezing point will only make those figures worse in 2010.

We must never lose sight that the impact of fuel poverty goes beyond money. Living in fuel poverty can affect people’s health, increasing the risk of common ailments such as colds, flu and respiratory infections including bronchitis. This has resulted in an estimated 2,500 winter deaths last year in Wales, with older people particularly susceptible.

There are indirect effects, too. Stress in children and adults, long-term depression and anxiety, social exclusion, damage to the health and life chances of families and individuals, and detrimental educational attainment. There are also broader economic implications for education, employment and health services in Wales.

In a political climate where the debate has flipped from who will spend more on public services to who will spend the least, and how quickly they will make that reduction, there is a danger that eradicating fuel poverty will remain an aspiration. The resources available to tackle fuel poverty have been outstripped by the rise in fuel prices.

So it’s right to ask whether we can afford to eradicate fuel poverty. When budgets are tight, it is the duty of all political parties to consider unpalatable choices. But when we consider the consequences of fuel poverty, perhaps the question should be: Can we afford not to?

- The debate in the Senedd is provisionally expected to begin at 1630h

- The coalition is made up of a number of key organisations involved in the fuel poverty agenda and led by Consumer Focus Wales and NEA Cymru. Members of our steering group include: Citizens Advice Cymru, Age Concern Cymru & Help the Aged in Wales, Community Housing Cymru, Children in Wales, West Wales Eco Centre, Macmillan Cancer Support, Shelter Cymru, Disability Wales, Oxfam Cymru, Care & Repair Cymru, End Child Poverty Network Cymru, NEA Cymru and Consumer Focus Wales