Findings from the British Gas Energy Trust first roundtable event

THE BRITISH GAS ENERGY TRUST 20^TH ANNIVERSARY ROUNDTABLE PROGRAMME

Date: 15^th May 2024

Location: Bromley by Bow Centre (BBBC), Tower Hamlets, London

Objective: To better understand the community’s fuel poverty challenges to ensure British Gas Energy Trust (the Trust) is supporting its partner funded organisations, individuals and families impacted by fuel poverty as effectively as possible.

Chief Executive of British Gas Energy Trust, Jessica Taplin explained: “Our 20^th anniversary should not be a cause for celebration, but rather an opportunity to reflect on our work. These roundtables will help to inform and influence our thinking as we develop a new strategy for the Trust.”

Key themes: The speakers discussed strategies that were already proving effective in supporting those in fuel poverty, and in particular people with mental and physical health issues, which was the theme for this roundtable.

Their observations included:

Support is often most effectively accessed and delivered by groups that are embedded in the communities where they work and have the trust of local people.

• Elly De Decker is Chief Executive of BBBC, which hosts a food bank used by up to 1,000 families. That had helped build trust within the community and feeds into BBBC’s wider range of local support services, delivered in partnership with local organisations. She said: “It’s not easy to ask for help. People feel safe here so we can provide a broad offer of tailored support. Energy advice is just one part of that.”
• Panna Begum, frontline advisor who works at BBBC, often deals with people whose English is a second language – or not spoken at all. To support those in energy debt or people worried about bills, she had been hosting energy workshops to help them better understand their bills.

Organisations must take a holistic approach to tackling fuel poverty because energy debt is rarely an issue that exists in isolation.

•  Jessica emphasised that there is ‘no silver bullet’ to tackle fuel poverty, which is a multi-faceted issue that requires sustained action, rather than isolated interventions to relieve immediate pressures.
• Chris Warner, a Lead Economist at Oxford Economics, said that analysis conducted on behalf of the Trust and British Gas had found that holistic support delivers double the social return than more targeted actions like grants to write off debt.
• Martin Lord, Consortium Director of Citizens Advice Essex, flagged the challenge of identifying people in need of support earlier, including those experiencing in-work poverty.
  He said: “Energy debt may be the prism through which someone engages with us, but it reflects wider issues in their personal circumstances. So, the energy advice we provide also plugs into all the other services we offer, such as debt advice. This is time consuming and expensive to deliver, so we have to focus on those most in need.”
• But Ayla Rashid, Energy and Wellbeing Advisor at BBBC, said financial support was still an important piece of the puzzle: “For people with large debts, we need to be able to clear that so they can start afresh. Only then can we start having conversations about budgeting, energy efficiency and more.”

People with mental health issues are disproportionately affected by fuel poverty and require tailored support, but often feel vulnerable when asking for help.

• Conor D’Arcy, Deputy Chief Executive at the Money and Mental Health Policy Institute, said just 12% of people with mental health problems have informed their energy company.
  He said: “It can often be hardest to reach out for help when you are struggling with your mental health. A lot of people may be put off by bad experiences they have had in the past and don’t know that sharing their mental health issues could unlock extra support.”
  He added: “We work to help train frontline staff at energy firms, so they can understand the challenges faced by people who are struggling with their mental health. Actions like sending a follow up email to confirm everything that was covered on a call can make a huge difference and means that customers can refer back and don’t have to carry it in their heads.”

Next steps: A discussion of future strategic priorities identified three broad areas for action:

A new approach to funding to reduce red tape and streamline funding streams together.

• A number of speakers stressed how the need to deliver holistic support could be hampered by the fact that frontline organisations commonly receive funding from multiple sources, which often comes with restrictions.
• With more flexible, long-term and stable funding, they would be able to deliver a more joined-up service, but that requires a new way of thinking by those who hold the purse strings.
• Elly De Decker, Chief Executive of BBBC, said a lack of joined-up thinking, particularly around government-led initiatives, was holding back progress towards long-term solutions.
  She said: “We’re incredibly grateful for all the financial support we receive, but at the moment, the burden is on organisations like ours to piece all the different funding streams together. My plea is for a more strategic approach by the funding community.”

Technologies like Smart Meters can enable more direct interventions for vulnerable customers, but there is a high level of mistrust that must be overcome.

• Danny Barr, Customer Welfare Manager at British Gas, highlighted the potential for energy suppliers to use technology to help customers more quickly and efficiently.
  Currently, 56% of customers have smart meters installed, and there is a job to be done to raise awareness of all the benefits they can bring, as many customers are sceptical.
  He said: “Smart metering enables us to offer targeted support. If you’re on a pre-payment meter, for example, and you go off supply, we can react really quickly. If you are on a traditional meter, we have no way of knowing you are struggling.”
• But BBBC advisor Panna Begum said: “Trying to promote smart meters is challenging because it can cause a lot of worry when people can see their bill constantly going up, even though it gives them more certainty about what they owe.”
• Consideration must be given to those customers – especially low-income households – who may not be tech-savvy or where English is not their first language.

Making homes more energy efficient and better insulated in the long-term can help shield households from the current and future fuel crises.

• Heating space and hot water accounts for a large proportion of energy used in the home. Low-income households often live in energy inefficient homes and need to pay over the odds to heat them. It is estimated that the number of fuel poor households in England rose from 4.3 million to 8.9 million from 2020 to 2023, households who are unable to afford to heat their homes to a temperature needed to keep warm and healthy. Cold, damp homes can contribute to a worsening public health and pressures on the NHS.
• While the transition to net zero is a challenge, it is also an opportunity to create a lasting solution to fuel poverty.
• Using less energy isn’t just good for the planet, it’s also a way to keep energy bills down and reduce the risk of falling into debt, but this will mean arming advisors with a new skill set to help households make the changes they need to.
• Martin Lord said: “The only long-term way of getting people out of fuel poverty is by helping them improve the energy efficiency of their homes. But we’re dealing with people who are likely to be being left behind in the transition to net zero. We have to become experts about everything in that area, including retrofitting and all the different support schemes that are available in different parts of the country.”

For more information about the roundtables, please click here.