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THE

BRITISHGAS

ENERGYTRUST

ALLEVIATINGTHEIMPACT

OFFUELPOVERTY

MAY2024

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TheBritishGasEnergyTrust:alleviatingtheimpactoffuelpoverty

MAY2024

3

TABLEOFCONTENTS

Forewords4

ExecutiveSummary6

1.Introduction10

2.FuelpovertyinBritain12

2.1Covid-19,warinUkraine,andthecost-of-livingcrisis13

2.2Theimpactofthecrisesonfuelpoverty14

2.3Theimplicationsofrisingfuelpovertyforfueldebt

16

3.WhatdoestheBritishGasEnergyTrustdo?18

3.1TheaimsoftheTrustandwhoitseekstosupport18

3.2HowdoestheTrustdeliveronitsaims?18

3.3TheTrust’sresponsetorecentcrises20

4.ProfilingtheTrust’sbeneficaries24

4.1Beneficiariesofdebtwriteoffgrants24

4.2Fundedorganisations26

5.Howdothetrust’sprogrammesimpactitsbeneficIaries?30

5.1TheTrust’sTheoryofChange30

5.2Theimpactoffuelpovertyandfueldebton

individualsandwidersociety30

5.3TheimpactoftheTrust’sprogrammesinpractice31

6.ThesocialreturnonInvestmentintheTrustin

thefinancialyear2023/2434

6.1Regionalresults36

7.TheTrust’ssocialimpactsince202038

AppendixA:Additionalanalysis40

AppendixB:SROImethodology42

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FOREWORDS

BRITISHGASENERGYTRUST

OverthepasttwodecadestheBritishGas

EnergyTrusthassupportedmillionsofpeoplesufferingfromthedetrimentalimpactoffuel

poverty.Since2020,theTrusthasbeenabletotriplethenumberofpeoplesupportedthankstoathreefoldincreaseinfundingfromBritishGas,oursolefunder.TheTrusthastakena

proactiveresponse,firsttothepandemicandthentotheenergycrisisandcontinuedcostoflivingchallenges.Thishasinvolveddiversifyingsupportaswellfocusingfundingand

servicestowardssomeofthemostdeprivedcommunitiesandhouseholdsmostatriskoftheharmthatpovertycauses.

Theevidencefromthisreportestablisheswhat

wehavelongbelieved:thatholisticsupport,

whencombinedwithpracticalhelpsuchasdebtgrants,vouchers,andenergyefficiencymeasureshashadasignificantpositiveimpactonthelivesofthosesupported,andapositivesocialimpactfarinexcessoftheactualfundsinvested.

Supportingindividualsacrosstheirmultiple

areasofneed,beitenergy,debt,orhealth

relatedissues,notonlyimprovestheirstandardoflivingbutcanhavebeneficialoutcomesforthosearoundthemtoo,includingtheirfamiliesandthoseintheirhousehold.

Thefocusistheindividualandunderstanding

theirspecificsituationandneeds,whichiswhywefundprojectsdeliveredthroughfrontline

charitiesandcommunity-basedorganisations,ensuringlocalsupportisavailablewhere

theissuesareandthathelpisdeliveredina

waythatiscognisantofthediverseneedsof

differentcommunities.Thesameistrueforourdirectgrantsprogrammeswhichapplyasimilarapproachtotheindividualcircumstancesof

eachapplicant.

Werecognisethatbeinginour20thyearisnotacauseforcelebration,indeedtwodecades

afterbeingestablishedtohelpalleviatethe

detrimentalimpactofpoverty,needforthe

supportweprovideisincreasinginmanyareas.

Butthereishope.Whatweseefromthisreportisthattheapproachworks,andreallydoes

helppositivelychangepeople’ssituationandwellbeing.Oneoftheoverarchinglearnings,fromthisreport,fromourperspectiveistheongoingneedtoinvestinandexpandthe

provisionofdirectsupporttoindividualsandhouseholds,throughinitiativesdeliveredbythirdsectororganisationsalongsidegrant

paymentsandfinancialhandouts.

Withthededicationandsupportfromour

funderBritishGas,weareconfidentthe

nextdecadewillseeusworkingtogetherforregenerativechange,tohelppeopleaffectedbyoratriskoffuelpoverty.

Myfinalnotewouldbe,thatwhilethisreport

providescompellingevidencethatcombiningpracticalsupportintheformofgrantsand

emergencyvoucherswithholistic,person-

centredsupportchangeslivesforthebetter,itisthestoriesfromfrontlineadvisorsandpeoplethemselvesthatmakeourworksofulfilling:

Thankyousomuchforyourhelp,itreally

doesmeanalottomeandmyyoungdaughtertohaveourdebtresolved.Youdon’trealise

howmuchthismeanstomyselfandmyfamily,therewerehappytears,andmyshouldersfeelalittlebitlighter!

JessicaTaplin

ChiefExecutive,BritishGasEnergyTrust

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5

BRITISHGAS

Thelastcoupleofyearshasbeenanincredibly

toughtimeformanyofourcustomers

andcommunitieswhohaveexperienceda

rollercoasterofunprecedentedevents—fromthefirstglobalpandemicin100yearstotheonsetofthelargestarmedconflictinEuropesinceWorldWarII.

Theseeventshavecontributedtothecurrent

costoflivingcrisisandhavesadlyresultedin

moreandmorehouseholdsfeelingthepressureofpayingforeverydayessentials-whether

that’stheirmortgage,rentandcounciltax,ortheirfood,waterandenergybills.

Iseeitasourdutytodowhateverwecan

tohelppeoplethroughthecrisis.That’swhy

we’verampedupoursupportforthosewho

arestrugglingtopayforenergybygrowing

ourcallcentreteamandvoluntarilydonating

￡140milliontosupportthosecustomersin

payingtheirenergybillsoverthelasttwoyears,whichismorethananyotherenergysupplier

intheUK.Thishascontributedtousdonatingover￡200milliontotheBritishGasEnergy

Trustoverthelastdecade,andcomplementsthehundredsofmillionsofpoundsweprovide

eachyeartowidersupportprogrammesliketheWarmHomeDiscountandEnergyCompanyObligation.

Duringthistime,I’mproudofhowwe’ve

workedwiththeTrusttoensureitcanbea

lifelinetotherisingnumberofpeoplewhohaveneededahelpinghand,irrespectiveofwhetherthey’reaBritishGascustomerornot.Itdoes

thisbyprovidingexpertmoneyandenergy

advicealongsidedirectgrants,whilstbuildingextracapacityattheheartofcommunities

byfundingover40projectsin2023-24,andadvicecentresfocusedinareasofgreatestsocialneed.

Inthefollowingpages,you’llhearjusthow

invaluablethissupporthasbeen.Beingindebtisincrediblyworryingandovertime,itcan

reallytakeitstoll.Sobyeasingtheimmediatefinancialstressandgrowinglife-longmoney

andenergymanagementskills,it’sgreattoseethattheTrustishelpingimprovehealthand

wellbeingwhilstgeneratingbroadereconomicbenefitstosocietythroughsavingstotheNHS,boostingtaxrevenueandmore.

AlthoughI’mpleasedthattheTrusthasbeenabletotreblethenumberofpeoplesupportedinrecentyears,societycan’tgoonlikethis.

I’mthereforefullycommittedtoseeingwhat

morewecanachieve,togetherwithourfriendsattheTrust,inbroadersocietyintheyearstocome,andI’mhopefulthattogether,we’llworktowardsdeliveringafairerfutureformany

morepeople.

ChrisO’Shea

ChiefExecutive,Centrica

In2024,theBritishGasEnergyTrust(theTrust)marks20yearssinceitsestablishmentasacharitabletrust,fundedsolelyby

BritishGas.Overthepasttwodecades,theTrusthasinvested

nearly￡200milliontocombatfuelpoverty,providingsupporttoaround170,000individualsinthelastfouryearsalone.

TheTrustpursuesitsmissiontoalleviatethedetrimentalimpact

offuelpovertythroughatwo-prongedapproach.Firstly,theTrustextendsdirectsupporttohouseholdsthroughitsdirectgrant

programmes,whichprovidefuelvoucherstothosecurrentlyinoratriskoffuelpoverty,aswellasgrantstoindividualsinarrearstowriteofftheirdebt.Secondly,theTrustprovidesorganisationalgrantstocharitablegroupstoenhancetheircapacitytodelivermoneyand

energyadviceservicestothosefacingfinancialhardship.1

67,000

Thenumber

ofindividuals

supportedbythe

Trustinthe

financialyear

2023/24,an

increasefrom

21,000in2020/21.

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EXECUTIVESUMMARY

ABOUTBRITISHGASENERGYTRUST

￡198million

BGET’stotalinvestment

since2004towards

alleviatingthe

detrimentalimpact

offuelpoverty.

TheTrust,alongwithitspartnerorganisations,support

individualsfacingchallengingcircumstances,suchaslong-termillnessanddisability,whicharelinkedwithahigherlikelihood

ofbeinginfuelpoverty.Byalleviatingfuelpoverty,theTrust’sprogrammesintendtohelpindividualshavebettercontroloftheirfinances,liveinwarmer,healthierhomes,andreporta

greatersenseofwellbeing.Throughitsorganisationalgrants,theTrustalsointendstoenhancethecapacityandabilityoforganisationstodeliversupportandreachthoseinneed.

PURPOSEOFTHESTUDY

Thisreportconductssocialreturnoninvestment(SROI)analysisoftheTrust’soperationsfromApril2020toMarch2024,and

isprecededbya2015reportlookingatthesocialreturnon

investmentintheTrustsinceitscreation.2Thereportfollowsabest-practicemethodologyanddrawsonextensivesurveyandadministrativedatafromtheTrustonitsbeneficiaries.

KEYFINDINGS

Theperiod2020to2024wasmarkedbyrisingfuelpoverty

duetothelargeincreasesinfuelpricesandthebroadercost

ofliving.Duringthisperiod,inEnglandalonethenumberof

fuelpoorhouseholdsmorethandoubledfrom4.3millionto

8.9millionaccordingtoonemeasure.3Inresponse,theTrust

tripleditsexpenditurefrom2020/21to2023/24,andincreasedthenumberofindividualsitsupportedannuallyfrom21,000to67,000,complementingtheraftofsupportmeasuresintroducedbygovernment.

1TheTrustalsooperatesanumberofsmallerprogrammesincludingtheprovisionofwhitegoods,andenergyefficiencymeasures,andthepaymentofprocessingfeesforbankruptcyanddebtrelieforders.

6

2OxfordEconomics,“

TheeconomicandsocialimpactofBritishGasEnergyTrust

”,August2015,accessedApril2024.

3Fuelexpenditureofmorethan10%ofincomeafterhousingcostsisusedasthedefinitionoffuelpoverty.DatafromDepartmentforEnergySecurityandNetZero,“

AnnualFuelPovertyStatisticsinEngland,2024(2023data)

”,accessedMarch2024.

Thereportfindsthat,inthelatestfinancialyear,every￡1spentbytheTrustyielded￡5.50insocialvalue.Grantsto

organisationsofferingmoneyandenergyadviceservices

boastedthehighestSROIratioof￡6.50,meaningevery￡1of

BGET’sfundingtopartnerorganisationsgenerated￡6.50in

socialvalue.Thiswasfollowedbydirectgrantstoclearfueldebtarrears,forwhichtheIndividuals&Families(I&F)fundhadan

SROIof￡2.60,andtheEnergySupportFund(ESF)anSROIof￡2.30,andlastlyfuelvouchers(FinancialAssistancePayments)hadanSROIof￡1.10.TherelativelyhighSROIratioforgrantstoorganisationshighlightstheimportanceofcombiningenergy

debtreliefwithmoreholisticsupport.

morethan￡200millioninsocietalimpactinexcessofthecostofitsoperationsandprogrammefunding.Inthelastfouryears,theTrustcreated￡264millionworthofsocialimpact,comparedtoitscostofoperationsandprogrammefundingof￡61million.Thisimpactconsistedofenhancedwellbeingforsupported

individualsandothermembersoftheirhouseholds,worth

￡253million,andbroadereconomicbenefitstosocietyintheformof￡11millionofgainstotheexchequerthroughadditionaltaxrevenue,andsavingstotheNHS.

TheTrust’simpactacrosstheUKandinareasofdeprivation

TheTrust’simpactspansacrosstheUK.Inthelatestfinancial

year,itsactivitiesintheNorthWestofEngland,Scotland,

London,andtheSouthWestofEnglandcreatedthelargest

socialimpact.Duringthissameperiod,theTrust’sactivitiesin

Englandcreated￡40millioninnetbenefitstosociety,itsactivitiesinScotland￡7million,anditsactivitiesinWales￡2million.

TheTrust’ssupportprioritisesareasofacuteneedwitharoundfourin10directgrantrecipientsresidinginthe20%most

deprivedareasofEngland,Scotland,andWales.Moreover,oftheorganisationsfundedbytheTrustwhichhaveageographicfocus,aroundtwo-thirds(65%)werebasedinthe20%most

deprivedareasinEngland,Scotland,andWales.4

TheBritishGasEnergyTrust:alleviatingtheimpactoffuelpoverty

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ThesocialreturnoninvestmentintheTrust

Grantstoorganisations

offeringmoneyandenergyadviceservicesboastedthehighestSROIratioof￡6.50,meaningevery

￡1ofBGET’sfundingtopartnerorganisationsgenerated￡6.50insocialvalue.

Intermsofscale,overthepastfouryears,theTrustcreated

￡264million

Socialimpact

createdbythe

Trustbetween

April2020and

March2023.

4Organisationsfundedasoffinancialyear2023/24.7

77%

ShareofFunded

Organisation

beneficiarieswho

agreedorstronglyagreed

thattheyfeelmorefinanciallystableandsecureafterhavingreceivedsupport.

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TheBritishGasEnergyTrust:alleviatingtheimpactoffuelpoverty

ThetypesofindividualstheTrustsupports

WhencomparingtheTrust’sbeneficiariestonational

benchmarks,theTrustisabletodisproportionatelyreach

groupsidentifiedasbeingmorelikelytobeatriskoffuel

poverty.Forexample,beneficiariesofthefundedorganisationsprogrammeare,comparedtothepopulation,morelikelyto

beunemployed(19%vs.3%),morelikelytoclaimuniversal

credit(51%vs.9%),andmorelikelytohavealong-termillnessand/ordisability(53%vs.36%).5Certainsocioeconomicand

demographicgroups,includingthoseabove,havebeenshowntobemoreatriskofbeinginfuelpoverty.

ThetangibleimpactoftheTrustonitsbeneficiaries

SurveydataonbeneficiariesoftheFundedOrganisations

programmedemonstratethetangibleimpactoftheTrust’sworkonindividuals.Atfollow-upsurveysaftersupporthadbeen

received,justundertwo-thirds(65%)ofrespondentsagreedorstronglyagreedthattheyfeellessstressedsincereceivingsupport(65%)andmorethanthree-quarters(77%)agreed

orstronglyagreedthattheyfeelmorefinanciallystableandsecure.

Thisimpactalsotranslatesintoimprovementsinindividuals’

senseofwellbeing.Atbaseline,44%ofrespondentsagreed

orstronglyagreedthattheyweresatisfiedwiththeirlives(a

commonlyusedmeasureofwellbeing),whichhadrisento74%atfollow-upsurveysaftersupporthadbeenreceived.

CasestudiesoftheTrust’simpact

ThereportalsoillustratestheTrust’simpactonfunded

organisationsthroughtheuseofcasestudiestoshowcasetheworkofcharitiesdedicatedtosupportingindividualsinareasofdeprivation,andthosewithspecificneeds.Thecasestudiesuseanonymisedreal-worldexamplestodemonstratetheimpactofthesupportonindividuals.

5DataonbeneficiariesarefromsurveydatedcollectedbyfundedorganisationsonbehalfoftheTrust.Sourcesfornational8benchmarkdataaredescribedinthefullreport.

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1.INTRODUCTION

TheBritishGasEnergyTrust(theTrust)isanindependentcharitabletrustfunded

solelybyBritishGas,whosemissionistoalleviatethedetrimentalimpactofpovertybyfocusingonfuelpoverty.In2024,theTrustmarks20yearssinceitslaunch,

duringwhichtimeithasinvestednearly￡200millioninpursuitofitsmission.6

TheTrustemploysatwo-

prongedapproachtoreducingfuelpoverty,anditsadverse

impactonindividuals.Firstly,

theTrustextendsdirect

supporttohouseholdsthroughitsdirectgrantprogrammes,

whichprovidefuelvouchers

tothosecurrentlyinorat

riskoffuelpoverty,aswell

asgrantstoindividualsin

arrearstowriteofftheirdebt.Secondly,theTrustprovides

organisationalgrantsto

charitablegroupstoenhancetheircapacitytodelivermoneyandenergyadviceservicestothosefacingfinancialhardship.

TheTrust’sprogrammesareactivethroughoutEngland,Scotland,andWales.

Thisreportundertakesasocialreturnoninvestment(SROI)analysisoftheTrust,which

quantifiesthesocietalbenefitsandcostsoftheTrust’s

activities.FollowingonfrompreviousresearchconductedbyOxfordEconomicsin2015,

thereportexaminestheimpactoftheTrust’sinterventions

againstthebackdropof

contemporarychallenges.7

Thereport’sstructureisasfollows:

?Chapter2describesthe

evolutionoffuelpoverty,

thefuelpovertygap,and

fueldebtinrecentyears,

contextualisingthesetrendswithinthedualcrisesof

Covid-19andRussia’s

invasionofUkraine.

?Chapter3provides

furtherdetailontheTrust,

includingitsaims,thetargetdemographicitseeksto

support,itsmethodfor

achievingitsaims,anditsresponsetorecentcrises.

?Chapter4usesdataontheTrust’sbeneficiariestoillustratethechallenges

theyface,aswellastheirgeographicaldistributionacrossEngland,Scotland,andWales,includingtheproportionwhichare

locatedindeprivedareas.

?Chapter5outlinesthe

mechanismsthroughwhichtheTrust’sprogrammes

cancreatesocialimpact,drawinguponitstheoryofchangeandexisting

empiricalevidenceontheimpactoffuelpoverty.

ItalsousestheTrust’s

datatodemonstratethe

impactofoneoftheTrust’sprogrammesonindividuals.

?Chapter6summarisesthereport’sfindingsonthe

socialreturnoninvestmentintheTrustforthefinancialyear2023/24.

?Chapter7looksbackathowtheTrust’ssocialimpacthasevolvedsince2020,andthetotalimpactithascreated

inthattime.

6EstimatedusingtheTrust’s2023impactreportwhichstatesthattotalspendfrom2004totheendoftheTrust’sfinancialyear22/23was￡176million,andtheTrust’sforecastexpenditureforFY23/24of￡22million.

107OxfordEconomics,“

TheeconomicandsocialimpactofBritishGasEnergyTrust

”,August2015,accessedApril2024.

TheBritishGasEnergyTrust:alleviatingtheimpactoffuelpoverty

2.FUELPOVERTYINBRITAIN

ThenumberofhouseholdsinfuelpovertyhasseenasignificantincreaseacrossBritainsince2020.In

England,thenumberoffuelpoorhouseholdsrosefrom4.3millionto8.9millionfrom2020to2023,accordingto

onemeasure.8,9InScotland,thesamemeasuresuggeststhe

numberoffuelpoorhouseholds

isexpectedtohaverisenfrom610,000to980,000between2019and2023.10,11,12

Thisriseinfuelpovertycanbeattributedtoincreasesinfuelpricesandbroaderlivingcosts,whichdroveupfuelpoverty

ratesfrom2020onward.

TheprofoundsocioeconomicimpactofCovid-19was

associatedwithaninitial

uptickinfuelpovertylevelsin2020and2021.Thissituation

wasexacerbatedbyRussia’s

invasionofUkrainein2022,

whichresultedinsignificant

increasesinglobalfuelprices

andcontributedtomounting

inflationarypressuresacross

therestoftheeconomy,furtherstraininghouseholdbudgets.

DEFININGFUELPOVERTYINBRITAIN

ApersonisdefinedbytheOfficeofNationalStatisticsasbeinginfuelpovertyiftheyareinalow-incomehouseholdandcannotkeeptheirhomewarmatareasonablecost.13

Instatutoryterms,fuelpovertyisdefined

differentlyineachofEngland,Scotland,andWales:

?InEngland,membersofahouseholdareinfuelpovertyif,aftersubtractingenergyandhousingcosts,theirresidualincomeisbelowthepovertylineandtheirhomehasapoorenergyefficiencyrating.14,15ThegovernmentalsoproducemeasuresthatareconsistentwithScotlandandWalesasapartoftheirstatisticalreleases.

?InScotland,membersofahouseholdarefuelpoorif,afterhousingcosts,theywouldneedtospendmorethan10%oftheirnetincomeonfueltopayforreasonablefuelneeds.16

?InWales,membersofahouseholdarefuelpoorif,beforehousingcosts,theywouldneedtospendmorethan10%oftheirnethouseholdincomeonfueltoheattheir

hometoa“reasonable”level.17

Wherethisreportcitesmeasuresoffuel

poverty,weusetheafter-housingcosts

measure.Wehavechosenthismeasureas

itallowsforcomparabilitybetweenEnglandandScotland.TheLowIncomeLowEnergyEfficiency(LILEE)metricisalsonotas

sensitivetochangesinenergycosts,and

somaynotadequatelycapturetheburdenfacedbyhouseholdsstrugglingtokeeptheirhomewarmatareasonablecost.

Theseverityoffuelpovertycanbemeasuredusingthefuelpovertygap,whichisthe

additionalincomerequiredforafuelpoorhouseholdtonolongerbeinfuelpoverty.18Theaggregatefuelpovertygaprepresentsthetotalreductioninenergycostsrequiredtotakeallfuelpoorhouseholdsoutof

fuelpoverty.19Thismeasureiscalculated

inEnglandusingtheLILEEmetric,andin

Scotlandusingtheafterhousingcostsmetric.

8DepartmentforEnergySecurityandNetZero,“

AnnualFuelPovertyStatisticsinEngland,2024(2023data)

”,accessedMarch2024.9Fuelexpenditureofmorethan10%ofincomeafterhousingcostsisusedtoestimatefuelpoverty.

10ScottishGovernment,“

CostofLiving(TenantProtection)(Scotland)Act2022:firstreporttotheScottishParliament

”,accessedApril2024.

11ScottishGovernment,“

ScottishHouseConditionSurvey:2022

”,accessedApril2024.

12Thecollectionoffuelpovertydataisdevolvedtonationalgovernments,andcomparabledatadoesnotexistinWales.

13DefinitionforEnglandandWales.OfficeforNationalStatistics,“

HowfuelpovertyismeasuredintheUK:March2023

”,accessedFebruary2024.

14ApoorenergyratingisdefinedasapropertywithafuelpovertyenergyefficiencyratingofbandDorbelow.Theenergyratingmeasurecalculatedestimateshowmuchenergyisrequiredtoheatanindividual’shome,baseduponitsmaterialsandinsulationproperties.

15DepartmentforEnergySecurityandNetZero,“

FuelPovertyMethodologyHandbook

”,accessedFebruary2024.1216ScottishGovernment,“

Homeenergyandfuelpoverty

”,accessedFebruary2024

17StatisticsforWales,“

WelshHousingConditionsSurvey(WHCS)2017-2018FuelPovertyProjectionsforWales2021:Methodology

Report

”,accessedFebruary2024

18OfficeforNationalStatistics,“

HowfuelpovertyismeasuredintheUK:March2023

”,accessedFebruary2024.19SuzannaHinsonandPaulBolton,HouseofCommonsLibrary,“

FuelPoverty

”,accessedMarch2024.

300

250

200

150

100

50

0

TheBritishGasEnergyTrust:alleviatingtheimpactoffuelpoverty

Theincreasesinfuelprices

paidbyconsumersinthe

UKoccurredinpartdueto

structuralfactorswhichmeanttheUKwasvulnerabletoa

globalshockofthisnature.20

Thesefactorsincludeda

dependencyongasimports,andtheincompletetransitionawayfromfossilfuelsto

renewableenergysources.

Duringthisperiodof

increasingfuelpoverty,the

Trust’ssupportcomplemented

arangeofmeasures

introducedbytheUK

governmenttolimittheeffectofthesecrisesonhouseholds.

2.1COVID-19,WARINUKRAINE,ANDTHECOST-OF-LIVINGCRISIS

Whiledisposableincomesinpoorerhouseholds

increasedslightlyduringthefirstyearofthepandemic

duetosupportmeasures

providedbygovernment,

evidencesuggestslockdownrestrictionsandsocial

distancingledtoincreasedspendingonfuel,as

individualsspentmoretimeathome.21,22Additionally,

anecdotalevidenceindicatesthatthequalityofhousing

forthosealreadylivingin

substandardconditionsmayhavefurtherdeterioratedduetodelaysinnecessaryrepairwork.23Forthesehouseholds,energyefficiencymayhave

worsened,increasingboth

theincidenceandseverityoffuelpoverty.

Aroundtwoyearsafterthe

onsetofCovid-19,Russia’s

invasionofUkraineresultedinamorethandoublingof

thepricespaidbyconsumersforgas,andaneardoubling

inelectricitypriceswithin

ayear.Bytheendof2023,

gasandelectricitypriceshadfallensomewhatfromtheir

peakbutwerestill71%and61%higherrespectivelythanpre-Covid-19levels.

Fromthestartof2020totheendof2023,pricesofgoodsandservicespurchasedby

consumers(excludingenergy)alsoincreasedbyaround20%,placingadditionalstrainon

householdbudgets.24

Fig.1:Evolutionofgasandelectricitypricesfromthestartof2020toendof202325

Priceindex(2020=100)

CPIHGasCPIHElectricity

2020

2020

2020

2020

2021

2021

2021

2021

2022

2022

2022

2022

2023

2023

2023

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Source:OxfordEconomics,ONS

20EnvironmentalAuditCommittee,

“Acceleratingthetransitionfromfossilfuelsandsecuringenergysupplies

”,January2023,accessedApril2024.

21InstituteforFiscalStudies,“

Livingstandards,povertyandinequalityintheUK:2022

”,July2022,accessedMarch2024.

22SeeBox1:Covid-19andfuelpoverty.SuzannaHinsonandPaulBolton,HouseofCommonsLibrary,“

FuelPoverty

”,February2024,accessedMarch2024.

13

23PhillipBrown,DillonNewton,RachaelArmitageandLeanneMonchuk“

Lockdown