Energy Poverty is an Equality Issue

By Denise Charlton

The huge challenges facing families and individuals in balancing their household budget has been laid bare in the report ‘Energy Poverty and Deprivation in Ireland’ by the experts at the ESRI in partnership with The Community Foundation for Ireland.

If a continuing trend of increasing prices were to come to pass then more and more homes will face the starkest choices of all, whether to put food on the table, clothe children for school or turn on the immersion.

The fact that a further 25% hike in bills, and that is certainly not beyond the bounds of possibility, could see fuel poverty levels reach 43% is frightening.?

?It is worth reflecting on that finding alone for a moment. Potentially we could in a very short period of time see four out of ten homes in real trouble when attempting to keep up with bills, while at the same time having food and heat.

The significance of the figure is further underlined when we see it is more than double the previous high point which was recorded in the early 1990’s.

We only have to look at the hard cold numbers in actual cash to see the pressure being placed on people.

If bill increases at the higher end of the ESRI’s predictions come to pass then the average household will see its weekly energy bills jump 36.57 a week since the start of last year – add in petrol or diesel for the car and the figure is €67.66.

We all know the global challenges which have brought us to this place and these maybe largely beyond our control. What is within our power though is how we respond as a country and society to ensure that we take measures which assist those in the greatest need.

?Energy Poverty is an Equality Issue

The researchers at the ESRI have not only shone a spotlight on the hugely difficult choices facing people in our communities they have also set out policy options in order to formulate an effective response.

Noteworthy in the report is the acknowledgement that those households with the lowest income spend the greatest share of their money on fuel. This cannot be ignored. Fuel Poverty is an equality issue.

What is needed is a targeted response which prioritises any supports for those in the greatest need.

Also of note is the observation that blanket cuts in direct taxation will blunt the message about cutting back on fossil fuels. This represents a threat not just to this generation but to generations to come as it will contribute to rising temperatures prompting even more severe weather events during our winters into the future.

What is put forward is suggestions of lump sum payments including an enhanced Christmas bonus, the expansion of the fuel allowance scheme as well as PRSI credits so as those on low pay and renters will also benefit.

Right now many of the 5,000 voluntary, community and charitable organisations which The Community Foundation for Ireland count on as partners are working on their pre-budget submissions. Today’s findings will inform this process.

In addition to the pressure on individual households these groups which offer wide range of services and supports will not only see a further increase in demand from people in need of help but will themselves also face increased bills.

Domestic violence refuges, Family Resource Centres, Youth Clubs and Cafes, those providing shelter and support both in the homeless crisis as well as those supporting refugees from Ukraine will all have to pay more for their energy needs,

Next Steps

For many families they cannot wait for the shorter, colder and darker days when Budget 2023 is delivered in October for the Government to act. Such a delay is not good enough.

Back to school costs are already bringing their own challenge. Adding to the pressure on many parents.

The Government should begin an immediate examination of this report and the submissions it is receiving ahead of the budget and set out a course now which will deliver targeted actions sooner rather than later.

Conclusion

At the heart of our national response to the Covid-19 pandemic was our resilience and ability as a society to come together to help family members, friends, neighbours and even strangers.

When other services were shutting down our community and voluntary sector stepped up to the mark. They filled a void.

As a society we are again being challenged. Our network of community partners have been ringing the alarm bells. This research supports the accounts and reports we have been receiving from those working on the ground.

The forecasts set out by the ESRI are alarming, but the researchers have taken time to not only set out the huge challenge ahead they have also provided policy options which can alleviate the burden for many.

Policymakers would do well to take on board what has been proposed and over the weeks of summer put in place plans which can be activated swiftly from September – without any delay.

Denise Charlton is Chief Executive of The Community Foundation for Ireland which over the past two-decades has provided almost €100 Million in grants to communities.