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Fuel Poverty and disabled people: the impact of policy change Dr. Carolyn Snell, The University of York c arolyn.snell@

Fuel Poverty and disabled people: the impact of policy change Dr. Carolyn Snell, The University of York c arolyn.snell@york.ac.uk Funded by eaga charitable trust (2012-2013)

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Fuel Poverty and disabled people: the impact of policy change Dr. Carolyn Snell, The University of York c arolyn.snell@

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  1. Fuel Poverty and disabled people: the impact of policy change Dr. Carolyn Snell, The University of York carolyn.snell@york.ac.uk Funded by eaga charitable trust (2012-2013) http://www.eagacharitabletrust.org/index.php/projects/item/fuel-poverty-and-disabled-people-the-impact-of-policy-change http://www.york.ac.uk/spsw/staff/carolyn-snell/#tab-2

  2. Overview • One of two projects funded by eagact in 2012 • A one year project with the following aims: • To consider the relationship between disabled people and fuel poverty • To consider the impact of policy changes on disabled people • To pay particular attention to different age groups and the private rented sector • Three main approaches: • Literature review • Analysis of the English Housing Survey • Qualitative interviews

  3. Definition of fuel poverty • Increased discussion of fuel poverty given the Hills review in 2012 • Official statistics use the ‘full income’ version (which includes payments such as HB) but also present basic income (which excludes these) • Headline figures are naturally lower under ‘full income’ calculations • The treatment of disability related benefits such as DLA in general calculations of poverty are controversial as it may artificially inflate income pushing some hhs over the poverty threshold • The same argument is extended to the calculation of fuel poverty (e.g. Hills 2012) and is something we have considered in our research • The ability of the 10% definition to capture the increased energy needs of those who are in the house for longer or need a warmer house

  4. The issues: poverty and disabled people • There is a recognised link between poverty and disability • Six fold increase in the rate of poverty amongst disabled people (Palmer 2011), Children in households with a disabled adult twice as likely to be in severe poverty compared to a household without a disabled adult (Save the Children 2010). • Disabled people are less likely to be in employment, and are less likely to have savings • Additional costs associated with disability • Disabled people may face up to an extra 25% expenditure (Leonard Cheshire 2009) • Energy is an aspect of this • More time in the home, increased laundry needs, cost of running specialist equipment

  5. The issues: health and heating • Additional heating needs: need for more warmth • Healthy/active people can generate more of their own heat compared to sedentary or ill people; some chronic conditions lower metabolism meaning that less heat is generated, others (such as stroke/dementia/Parkinsons) slow body heat generation and conservation • Some health conditions require higher heating regimes- e.g. COPD 21 degrees in order to maintain health • Where these temperatures are not maintained conditions may be exacerbated, there are greater risks to health, and there is a link between EWM and chronic/severe illness • Additional heating needs: need for longer periods of warmth • Where a person spends longer in the home they will be required to heat their home for longer if they are to keep their home at a healthy temperature. • This is not recognised in current calculations of fuel poverty • Relationship between fuel poverty and stress/depression/anxiety • Stress and depression associated with debt, living in poor housing conditions, not being able to heat the home sufficiently, worry about money, worry about balancing finances.

  6. The issues: housing condition and energy efficiency • Housing profile of disabled people often different to non disabled people (e.g.Papworth Trust 2011, BRE 2010) • Disabled children least likely to be living in suitable housing compared to other disabled people (Beresford and Rhodes 2008) • People over 65 who are disabled are more likely to live in a damp home (Age UK 2006) • Energy efficient and housing quality thought to be worst in the PRS although this varies by housing age

  7. The implications of policy change…? • Eligibility criteria for fuel poverty support • WHDS is restrictive and its core group is based on old age and low income related benefits . Many organisations argue that this should be extended (Cancer Macmillan, Contact a Family, Save the Children, Disability Action) • Targetting historically inaccurate (Marmott review suggests a 19-40% success rate) • The use of any form of passport will exclude some people (e.g. Those with a terminal illness/WHDS). • Shift from state support to cross subsidies viewed by many as regressive • Loss of warm front and transition to ECO is suggested as regressive as it is paid for through energy bills, and does not just support the fuel poor

  8. The implications of policy change…? • Impact of the use of CPI instead of RPI compounded by freezes and cuts elsewhere (charities, local government etc) • IS to ESA controversial • the creation of the support group and Work Related Activity Group has been criticised as creating a hierarchy of disabilities • The medical examination is regarded as stressful • The sanctions that can be imposed for those not attending career development is criticised • Transition of DLA to PIP • Many of the concerns about the transition to ESA are being raised regarding DLA, as is the likelihood of a loss of 20% of the caseload • Changes in support for disabled children under Universal Credit are likely to result in lower payments (£57 - £28) • Housing benefit reforms - rooms and disabled people • Council tax changes - around 50 % of council tax benefit currently goes to those on a disability related benefit. Councils will be expected to reduce spending, and to make localised decisions. Support could be patchy.

  9. The implications of policy change…? • Discussion within the literature of the impacts of welfare reform • impacts will vary depending on a range of factors • Age, benefit entitlement, housing circumstances, disability, household composition, fuel poverty relief eligibility, housing quality, local support • worsened fuel poverty • If incomes are reduced, and required energy use remains the same fuel poverty rates will increase • We know that households have difficult decisions to make – e.g. ‘heat or eat’, and that under heating, or self disconnection is often a way of managing energy bills. Again, this is likely to worsen, and may lead to negative health outcomes. • Reduced quality of life • debt, stress, fear of disconnection, more time spent in bed, more dangerous heating methods (cookers, candles, bbqs etc.).

  10. Heat or Eat: concerns expressed by charities ‘‘1 in 6 is going without food, more than one in 5 is going without heating[and] almost a third have taken out a loan for food and heating…’ (Contact a Family 2012: 3). ‘Over 45% were cutting back on essentials like heating or food…and a third [of carers] were unable to afford their utility bills’ (Carers UK 2011: 3) ‘Cancer patients should not be forced to choose between a warm home and other essentials such as food’ (Macmillan Cancer Support 2012: 1).  ‘24% of people living with cancer had to or expected to wear winter clothes in the house to keep bills down’ (Macmillian Cancer Support 2011: 1). ‘Mark has had to make decisions about what to buy...food or coal’ ((Disability Action 2011: 2). ‘The [Spinal Cord Injuries Association] has heard from people with spinal cord injuries who regularly miss out on a daily hot meal in order to keep their heating on’ (Spinal Injuries Association 2012).

  11. Findings from Thomson, Snell and Bevan (2013) ‘Fuel Poverty and Disability: a statistical analysis of the English Housing Survey (2010-11)

  12. Scenarios Jean is a 68-year old single adult living in a one bedroom flat. She occupies her home during the day and so requires a full heating regime. She pays for her gas and electricity by prepayment meter. Jean has a long-standing disability, and receives a combined care and mobility DLA payment of £135 per week. Jean is eligible for the CERT priority and super priority groups, but is not classified as being fuel poor under the official fuel poverty definitions, with a fuel expenditure of 7.27% under a full income model, and 9.81% under a basic income model. However, once DLA payments are removed from the calculations, Jean becomes classified as fuel poor under both the full income and basic income models, with fuel expenditure of 11.70% and 20% respectively. Jim is 39, and lives in a privately rented terraced house with his 15-year old registered disabled son. His son qualifies for the highest care component rate of the Disability Living Allowance, receiving £90 per week. Jim pays for his gas and electricity by prepayment meter, and qualifies for the CERT priority and super priority groups. Jim and his son are classified as under-occupying their property and so heating demand is modelled using a partial standard heating regime. Under the official full income definition of fuel poverty, with DLA included as income, Jim’s household is not counted as being fuel poor, with fuel expenditure representing 6.94% of total household income. When DLA is removed from household income, Jim’s household is still not classified as fuel poor, but fuel expenditure increases to 9.14%. However, under a basic income definition, Jim does move into the fuel poor category with the removal of DLA as income, with fuel expenditure representing 11.85% of household income.  

  13. Future directions: some thoughts • Welfare reform and poverty – knock on effects in terms of household expenditure/types of expenditure/cut backs • Implications of eligibility of fuel poverty measures being tied to certain benefits (e.g. PIP losers) • Implications of a possible new measure of fuel poverty • Multi sector working – energy companies, LAs, Green Deal providers (e.g. Oldham & York) • Role for health practionners – insulation on prescription etc • Dealing with energy efficiency in the private rented sector

  14. A plea for help! We are very keen to speak to people working at a Local Authority level about the following issues: • Role of local authorities in tackling fuel poverty: • new public health role. • Links with health (linking with Clinical Commissioning Groups) • Health funding – Warm Homes, Healthy People • How far are Disabled Facilities Grants being used to fund heating? • Using the Health and Housing Safety Rating System to tackle fuel poverty – wider enforcement activity • Wider debt advice • Are there any changes to policy/practice that could help? • Changes to specific programmes • Changes to policy. • Views on Green Deal and ECO in meeting the needs of disabled people • Warm Home Discount scheme

  15. Current research team and recent publications Dr Mark Bevan (CI): Centre for Housing Policy, University of York Dr Carolyn Snell (PI): Department of Social Policy, University of York Harriet Thomson (RA): Department of Social Policy, University of York Thomson, H. and Snell, C. (2013). Quantifying the prevalence of fuel poverty across the European Union. Energy Policy, 52: 563-572. Snell, C., and Thomson, H. (2013). Reconciling fuel poverty and climate change policy under the Coalition government: Green deal or no deal? In: G. Ramia and K. Farnsworth (eds.) Social Policy Review 25: Analysis and debate in social policy, 2013, The Policy Press. Thomson, H., Snell, C., and Bevan, M (2013) Fuel Poverty and Disability: a statistical analysis of the English Housing Survey, Deliverable 1. A report written for eaga charitable trust http://www.york.ac.uk/spsw/staff/carolyn-snell/#tab-2 Snell, C., and Bevan, M., (2013) Fuel poverty and disability: a review of existing knowledge conducted for eaga charitable trust

  16. Carolyn.snell@york.ac.ukMark.bevan@york.ac.uk Report location: http://www.york.ac.uk/spsw/staff/carolyn-snell/#tab-2

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