Saturday 6 September 2008

Is The Government Right to Scrap the One-Off Winter Fuel Payment?


The government today announced that it would not be providing the much anticipated "Fuel Payment Plan" of £150 to seven million households, which was originally announced in the media last month after it was leaked by a senior civil servant travelling on a train. Is this the right decision?

Our homes consume energy, copious amounts of it. 83% of domestic energy is used for space and water heating, and in the huge majority of homes this is done in an inefficient way. One-off payments purely provide assistance in the short-term, delaying the issue and exacerbating the situation further. In addition by providing a "subsidised" fuel, encourages the user to continue to use energy in an inordinate way, becoming reliant on benefits to subsidise their existence. Reduction of consumption has not be ingrained into the mindset of the individual, increased consumption, increased demand, and whilst on a global scale, relatively minor, increased prices, inevitably leading to further hardship.

By focusing on reducing energy consumption, via energy efficient technologies such as cavity wall insulation and loft insulation, this assists with the core aims of a reducing dependency of fossil fuels and lowering CO2 emissions. It is an investment for the future and progresses the nation towards a low carbon economy. It alleviates the burden on the tax payer, freeing up future revenue to be invested in further projects. By empowering individual awareness of the environmental and economic benefits of reducing their consumption, this kick-starts a revolution of energy savers.

According to Uswitch, this year the average annual household bill will be £1,467, up 61% on last year. As a whole, this equates to an annual spend for domestic households of £31bil annually, of a total UK consumption expected to exceed £200bil (three times the level of 1998). If all households that could install the two measures mentioned above did so, with the help of government grants or assistance, we could reduce UK energy use in monetary terms by 0.88% per annum, and reduce UK CO2 emissions by approximately 8.4m tonnes.

Political benefits from energy efficiency in the long-term oppose to "short-term gimmicks", reduced reliance on imported 'old sun' energy, sustained decreased in energy consumption, reduced CO2 emmissions from point of implementation year-on-year, improved air quality and decrease in associated illnesses.

Whilst I believe the that the government has made the right decision, those that will suffer from this announcement, are those most in need of support, however there is genuine help available to those who are fuel poor, individuals on certain benefits, and even for those that are not.

Specific advice is available, you can contact the Energy Saving Trust or, if you contact us via email, with information about your current energy use, type of housing, installed heating methods, your location, energy supplier details. We will try to find the best solution to reduce your energy bills right now for free, through grants, support and practical advice.

Further information on how you can reduce your energy consumption this winter is available on our Winter Energy Saving Ideas page.


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