Thousands expected to fall into fuel poverty in Braintree
It's thought around 15 thousand households could be affected
Around 15,000 Braintree households will fall into fuel poverty, according to district council data, amid concerns current mitigation to energy bill rises are “quite hard to see anything optimistic about”.
Tom Walker, who led the Cabinet Office’s Levelling Up Task Force before becoming Essex County Council’s director for the economy, investment and public health earlier in the year, told a scrutiny committee at Braintree District Council that Essex County Council’s own energy data was ‘eyeball watering’.
Figures presented to Braintree councillors predict that 23 per cent of Braintree households – around 15,000 – will fall into fuel poverty following the 54 per cent price cap uplift observed in April 2022.
The numbers of people falling into fuel poverty are now likely to be significantly above the 43 per cent – or 28,000 Braintree households – predicted based on a further 65 per cent increase in bills from October. In fact that percentage increase is likely to be around 70 per cent leaving annual bills at £3,582.
Average annual energy costs are then predicted to increase again to £4,266 in January.
Mr Walker’s comments come after expert analysts at Cornwall Insight say the average home will pay £3,582 a year from October 2022 and £4,266 a year from January 2023.
The firm’s predictions have worsened since last week, when the firm said gas and electricity bills would be £3,359 a year in October and £3,616 in January.
A Cornwall Insight statement said this was due to “a change in calculation methodology” by energy regulator Ofgem.
‘Elderly people and urban social renters particularly at risk of fuel poverty’
Mr Walker said: “Winter 2022 is really eyeball watering in terms of its onward escalation of price. You look at the mitigations and it’s quite hard to see anything you can optimistic about.
“I don’t want to scaremonger on this but we will all read broadsheet press and listen to intelligent media and then when you see the market intelligence – and to some extent I am a layperson, I’m not an energy buyer – you think ‘wow, this is really serious’.”
He said in Braintree, the elderly are particularly at risk of fuel poverty. This can mainly be seen among those with limited incomes and living alone, but also among those enjoying a fairly comfortable retirement up to now. Urban social renters are also particularly at risk of falling into fuel poverty.
Around 97 per cent of elderly people with limited pension income who live alone may fall into fuel after October’s increase. Around 96 per cent of urban social renters may fall into fuel poverty from October.
The authority has said it has there are a number of ways it can help – including through the Essential Living Fund and discretionary housing payments.
In 2020/21, the district council made 267 awards totalling £246,000. Its budget in 2022/23 was £175,000 – 30 per cent less than the allocation in 21/22.
The council in the first quarter of this year has made 76 awards totalling £52,000. Local authorities however are allowed to top up the allocation by up to two and half times from its own budget, potentially increasing its discretionary housing payments pot to £437,000.
Juli Rigby, Braintree District Council’s revenues, benefits and systems manager, said: “What we are seeing is the local housing allowances – which is what we base the housing benefit awards on – haven’t been increased since April 2020 and increases in rent levels that are being charged now are going up almost monthly.
“So we are seeing customers asking for support through discretionary housing support where they have previously been able to find that shortfall.
“Now they are having to spend that on household costs. We are seeing an increase in the discretionary housing payments we are making.”
The council is are looking at a range of responses involving community and voluntary organisations which may involve setting up warm rooms for the winter.
Cherie Root, corporate director at Braintree District Council, said: “Members will be aware that we have recently put our shared prosperity fund investment plan in.
“For year one we have a cost of living focus and one of the projects we are looking is how we can support the community and voluntary organisation sector to help people in their areas.
“We are not restricting it to warm rooms – it could be a range of different things that community and voluntary organisations would like to put in place.
“We are also looking at warm room schemes ourselves but we have not got that shared prosperity fund money in the bank yet so we can’t spend it until we have got it.”