No matter who we are, we should be able to keep our homes warm in winter.
here we go again.The UK is mired in another crisis, this time as soaring energy prices collide with soaring inflation and falling incomes, resulting in what the Resolution Foundation is calling ‘year of austerity. At NEF, our two flagship events, living income and a mansion upgrade, providing the long-term answers we need. Now is not the time to patch surface solutions, but to finally address the structural issues that make our country so vulnerable to such economic shocks.
The government is in crisis talks with energy companies over a rise in global gas prices before announcing changes to the energy price cap next month.Caps limit what energy companies can charge customers and could see increases 50% increase in energy bills. Combined with soaring inflation, benefit cuts and an upcoming state insurance tax hike, the average household is set to get worse A staggering £1,200 in 2022.
That has left some households on edge this winter as they are forced to choose between things like heating or cooking to keep energy bills down.Fuel poverty, food poverty, child poverty – whatever you call it, it’s poverty, NEF’s own research shows 32% of the population (21.4 million) living below an acceptable standard of living (by minimum income, or MIS).
This is no accident. This is a direct result of how our economy is structured around low wages and a social safety net so imperfect that households are completely exposed to the slightest shock.
“That has left some households on edge this winter as they are forced to choose between things like heating or cooking to keep energy bills down. “
Meanwhile, we live in cold, drafty and leaky houses—70% of UK households Not reaching a very good level of energy efficiency.this means one in every four pounds The effort spent trying to keep our homes warm is futile.This most of our home Heated by the burning gas, this not only pollutes our communities but also makes us more vulnerable to fluctuations in the fossil fuel market.
Until we address these structural issues, we will be in between crises. Politicians and the media are starting to realize the impending household budget disaster. But so far, the solution is still too piecemeal, incremental and too small.Labour’s proposals this week Temporarily cut VAT on domestic fuel bills together with a Windfall taxes for oil and gas companies, while it may be welcome in the short term, feels ad hoc, poorly targeted and ultimately inadequate compared to the scale of action we need.
It now feels inevitable that the government has to do something. For political reasons, it cannot fail to do so. April is when higher energy price caps and tax increases collide, and it will be a kamikaze task for the Conservatives to contest local elections in May without taking action to support households.At that point, we’ll review what Rishi Sunak currently offers £500m family support fund That’s ridiculously insufficient for vulnerable families this winter.
“Most of our homes are heated by burning gas, which not only pollutes our communities but also makes us more vulnerable to fluctuations in the fossil fuel market. “
So what should the government do?Thankfully, there Yes A way we can make sure everyone has enough income to survive, and It is possible to live in a warm, comfortable home that does not pollute the earth. It comes from living income and quality home upgrades.
This living income is a bold reimagining of income support that will address the challenges and opportunities of a post-pandemic world and the economy we live in. You need it most, and most importantly, set a sufficient income level that no one can go below.
By providing everyone financial security with an adequate income floor, Living Income will ensure that households are prepared for any sudden price hikes or personal shocks we all face in life, such as lost work shifts, sick children, or damaged homes electrical appliances.
This mansion upgrade is a national mission to upgrade 19 million homes by 2030, giving every family a warm home for the future. We are calling on the government to invest £11.7 billion in a retrofit revolution to insulate and heat our homes without the use of polluting gas boilers, creating millions of new green jobs in the process.
With the Great Homes Upgrade, we will ensure that when future energy crises hit – and they will – households will use less energy, spend less money, and use green energy to power their homes and keep the planet cool , while their homes are warm.
Whatever action the government decides to take, it should move us towards living income and quality home upgrades. This will start to build the UK’s resilience to the inevitable shocks ahead, whether it be an energy crisis, a pandemic or a climate crisis. In 1962, President John F. Kennedy declared: “The best time to fix a roof is when the sun is shining”. We can’t wait for sunny days to fix the problems in our economy: As we begin 2022, the best time to fix a roof and improve our lives is now.
Image: iStock
