the-energy-penalty-disability-and-fuel-poverty-pdf

Recommendations

Info

enefits are treated in the calculation of fuel poverty is likely to underestimatelevels of fuel poverty amongst disabled people (Thomson, Snell,and Bevan, forthcoming). For example, this research shows that the effectof the inclusion of DLA as income in fuel poverty calculations is particularlypronounced among very low income households containing a disabledperson. Here, if income is adjusted by the removal of DLA, the 43% ofhouseholds containing a disabled person who are below the poverty line 4 ,and in fuel poverty would be very likely to increase. On the basic incomedefinition (that is excluding income related to housing such as housingbenefit) this figure increases to 56.4%.In addition, as Consumer Focus pointed out (2012), disability benefits arenot adequate for covering the additional fuel costs that many householdscontaining a disabled person face, notwithstanding whether they areadequate for covering other disability costs.The Government currently includes disability benefits as income in othermainstream income statistics. Consumer Focus has recommended that allincome and fuel poverty statistics should therefore be reformed to excludedisability benefits, rather than fuel poverty statistics alone (Consumer Focus2012). We support this recommendation which reflects the fact thatdisability benefits are intended to cover additional costs experienced bydisabled people, and should not therefore be treated as income which isavailable to meet everyday costs of living.4.2 Impact of benefits changesMany disabled people have been under increasing financial pressure as aresult of benefit changes over the last few years, even before other changestake effect this year. These include, for example, the abolition ofincapacity benefit and its replacement by Employment and SupportAllowance (ESA), and capping the rate at which a number of benefits areuprated below the rate of inflation. It is also worth noting that disabledpeople under pension age do not currently qualify for winter fuel payments.At the same time, many disabled people and families with disabled childrenare having to fund all or part of their social care needs due to cuts in helpby local authorities and/or narrowing of eligibility criteria.Findings from Demos research (Wood 2011) chart the cumulative effects fora number of families including disabled people and carers of cuts in benefitrates and reductions in local services over the last couple of years.Financial losses, growing isolation, and increasing strains on people’s mentalhealth have clear repercussions for the ability of households with disabledmembers to cope with the costs of energy bills and other essential services.Some of the participants in the Demos research reported having to choosebetween fuel and food, to cancel hospital appointments as they were unableto afford travel costs, and to let their houses fall into disrepair.4 This is commonly accepted as below 60 per cent median household income.36
We outline below a number of the critical changes that are due to takeplace in welfare benefits and some of the key implications for disabledpeople. This is not a comprehensive list – it is intended to indicate some ofthe scale and scope of the planned changes which are likely to impact onmany disabled people and their families.Impending benefit changesApril 2013 Local council tax support will replace council tax benefit - there areconcerns that some hard-pressed local authorities are likely to reducethe help provided to pay for council tax. Community care grants and crisis loans for general living expenses(including rent in advance) will be abolished and replaced by newlocal provision. Again there are concerns about possible reductions insupport by some local authorities. There will be a total benefits cap applying to many benefits forworking-age households, of £500 per week for couples and loneparents, and £350 per week for single adults. Although the caps donot apply to households receiving Disability Living Allowance, manydisabled people do not receive DLA and are reliant on other benefits. Personal Independence Payments will begin to replace DLA for newclaims in parts of the north of England; there are serious concernsthat new eligibility criteria will penalise some disabled people.June 2013Personal Independence Payments will be introduced nationwide to replaceDLA for new claims.October 2013Universal Credit will begin to be rolled out from then to 2017. One of thepurposes of UC is to rein in the total costs of a wide range of benefits andtax credits.(see for example, Hardest Hit Campaign 2012)Disability Living Allowance (DLA)DLA is due to start to be replaced by Personal Independence Payment (PIP)in April 2013 for people with a health condition or disability aged between16 and 64. There will be two components, mobility and daily living, whichwill be paid at two different rates.The reasons given by the Government for this change is ‘that the complexityand subjectivity of the benefit [DLA] has led to a wider application thanoriginally intended’ and the numbers of people qualifying need to bereduced in order for the benefit to be ‘sustainable and affordable’ andfocused on those who ‘need the greatest help to live independently’(Department for Work and Pensions, 2010a).37
Page 1 and 2: The Energy Penalty:disabled people
Page 3 and 4: ContentsPageExecutive summary and r
Page 5 and 6: Poverty and disabilityHouseholds wi
Page 7 and 8: ecause of dietary requirements or n
Page 9 and 10: 1. IntroductionThis report sets out
Page 11 and 12: including external barriers. In con
Page 13 and 14: For people of working age, disabili
Page 15 and 16: households without anyone with an i
Page 17 and 18: 2.3 Housing factorsDisabled people
Page 19 and 20: 3. Essential energy needsThere is a
Page 21 and 22: safe, again with potential conseque
Page 23 and 24: amounts of energy, especially durin
Page 25 and 26: that people with SCI maintain their
Page 27 and 28: Grandparents in this situation ofte
Page 29 and 30: As she has a new gas boiler, it mig
Page 31 and 32: On this basis her annual energy bil
Page 33 and 34: Xbox is used on average 5 hrs per d
Page 35: 4. Benefits and fuel povertyFirstly
Page 39 and 40: esearch by Citizens Advice, The Chi
Page 41 and 42: 5. Conclusions and recommendationsM
Page 43 and 44: ReferencesAction Against Allergyhtt
Page 45 and 46: Parkinson’s Society (2008) Life w
Page 47 and 48: Appendix 2Illustrations: key source

the-energy-penalty-disability-and-fuel-poverty-pdf

Create successful ePaper yourself

Delete template?

Save as template?