Research identifies UK’s ‘energy crisis hotspots’

Residents in Birmingham, Bradford and Cornwall will be hardest hit by spiralling energy costs, according to new analysis from Friends of the Earth.

The environmental charity found that there are almost 9,000 energy crisis hotspots across England and Wales, where energy use is high and typical household income is below the national average.

These communities are at greatest risk of serious financial hardship as a result of high energy costs. In many cases, poor insulation is contributing to high energy use.

Friends of the Earth is calling on the UK government to fund a council-led, street-by-street programme of free insulation.

Hotspots

The analysis also finds that the at-risk neighbourhoods are home to a higher proportion of children than other areas, and that people of colour are also twice as likely to live in them.

The researchers identified neighbourhoods with below-average income using the government’s Index of Multiple Deprivation as well as smart meter data and independent data on the cost of energy by fuel type.

Birmingham, Bradford, Cornwall and Sandwell, followed by County Durham and Enfield (joint fifth) rank highest among 30 local authority areas with the most energy crisis hotspots. Birmingham and Bradford also top a list of areas with the most homes that are missing basic insulation measures.

Energy regulator Ofgem is expected to announce the next industry price cap later this week. Beyond the £400 (US$470) discount this winter, the government says it is examining further ways to cut household energy bills. The new Prime Minister will be announced on 5 September. Without intervention, annual bills are forecast to increase to £3,553 from October and could top £5,300 in April 2023.

‘Catastrophic’

Mike Childs, head of science, policy and research at Friends of the Earth, said: “There’s no downplaying how catastrophic this and following winters will be for millions of people if energy bills rise as high as they’re predicted to, unless the government meaningfully intervenes.

“And while vital, this is only a short-term solution. The highest priority of all is fixing the UK’s leaky, inefficient housing stock, otherwise cash handouts will be required year on year. By rolling out a free programme of street-by-street energy efficiency measures, prioritising the most in-need neighbourhoods, we can help to bring bills down quickly, make homes warmer and slash Earth-warming emissions at the same time.”

A separate study by the New Economics Foundation (NEF) on behalf of Friends of the Earth shows that households could make savings of between £490 and £720 each year on their bills through the rapid roll-out of a council-led programme of insulation and other energy saving measures.

Friends of the Earth estimates that such a scheme in England and Wales would cost around £15 billion, which it says is three times lower than what households could save over a ten-year period. The charity says this could be partially paid for through the government’s Windfall Levy, which is expected to raise around £5 billion, and that a tougher version of the tax would go further.

The Local Government Association recently launched a cost-of-living hub to share what councils are doing to support residents. Actions on energy and fuel include energy rebate donation schemes, retrofit programmes, grants and warming centres.