The Trust creates more than £250 million in societal benefits since 2020 to help households in fuel poverty
Posted on 14th May 2024
The Trust creates more than £250 million in societal benefits since 2020 to help households in fuel poverty
The Trust has created £264 million in societal impact over the past four years, according to new analysis by Oxford Economics.
The report comes as the number of fuel poor households has more than doubled from 4.3 million to 8.9 million between 2020 and 2024[1] due to rises in fuel prices and cost of living, with the typical fuel-poor household in England needing £232 per year to escape fuel poverty, compared to £137 in 2020[2]. The analysis by Oxford Economics found that, at the peak of the crisis, more than two-fifths (41%) reported difficulty in paying their bills during this time.[3]
In response, British Gas Energy Trust has tripled its expenditure, enabled by boosted funding from British Gas, to provide essential support to those who need it most. Since the launch of the Trust in 2004, the Trust has received over £200 million in donations, helping more than 2.2 million people across the UK.
In the past financial year 2023/24, British Gas Energy Trust created £40 million in net benefits to society in England, £7 million in Scotland and £2 million in Wales. Around four in 10 direct grant recipients live in the 20% most deprived areas of the UK with the regions of London, the North West and Yorkshire & the Humber receiving the most support.
The social return on investment (SROI) in the Trust during this time is 5.5. For every £1 spent by the British Gas Energy Trust, it created £5.50 in value for society – more than double that of the previous report undertaken by Oxford Economics which was 2.4 for the financial year 2014/15. When breaking down the impact of each of the Trust’s programmes, the scheme which provides grants to support-focused organisations saw the highest SROI at £6.50.
Amongst beneficiaries of British Gas Energy Trust, nearly three-quarters (74%) said they felt satisfied with their lives after receiving the support and guidance, compared with just 44% who said the same before receiving support. In addition, nearly two-thirds (65%) said they felt less stressed, while more than three-quarters (77%) agreed that they felt more financially stable.
The purpose of the British Gas Energy Trust is to alleviate the detrimental impact of fuel poverty through three main programmes. This includes:
- Direct grants programme, helping people to clear fuel debt arrears
- Financial Assistance Payments (FAP) programme, offering fuel vouchers directly to individuals and families
- Supporting Communities at Risk Programme (SCARP) which funds charity advice agencies across Britain who provide holistic money and energy advice to individuals who have been disproportionately impacted by fuel poverty
Jessica Taplin CEO of British Gas Energy Trust said:
“The dual crisis of rising energy costs and wider cost of living increases continues to have a devastating impact on households. We had a clear goal for the Trust when it was set up 20 years ago – to alleviate the detrimental impact of fuel poverty. With the support of our grant and funded organisation programmes, this new report brings home the positive impact we’ve made so far – but it doesn’t end there.
“Our fight to help people in fuel poverty continues and this year to mark our 20th anniversary, we’re building on our understanding of the issue from the front line, by visiting charities and third sector organisations who support those most at risk of fuel poverty, and hearing from people affected, to take stock on what really helps and the barriers we still need to overcome. The aim is to identify and fund future interventions that are proven to support the most vulnerable communities while gathering meaningful lessons to influence societal change and see significant reductions in fuel poverty over the next decade.”
Chris O’Shea, Chief Executive of Centrica, said:
“The impact that the British Gas Energy Trust has had has been phenomenal. Not only is it reaching people in some of the most deprived areas across the country, it is also positively impacting people’s lives, supporting them with financial aid and guidance in their time of need.
“While it’s been good news that food and energy prices are falling, for many households the cost-of-living crisis is far from over. That’s why we’ve put £140 million into supporting those who need help the most. We will be continuing to work closely with the Trust to ensure that this work continues and to help alleviate the pressures so many are facing – now and in the future.”
Chris Warner, Lead Economist at Oxford Economics, said:
“The report underscores the efficacy of interventions targeting fuel poverty to create social value and demonstrates the profound effect of British Gas Energy Trust’s programmes on its beneficiaries’ sense of wellbeing. Ultimately, it showcases why charities such as the Trust should collect comprehensive yet proportionate data on their beneficiaries in order to understand and communicate their impact.”
About Oxford Economics methodology:
The report uses social return on investment analysis to quantify the social value created by British Gas Energy Trust. In alignment with the Trust’s aim to enhance the wellbeing of its beneficiaries, Oxford Economics used a wellbeing-centric approach to quantify its social value.
The research draws on survey and administrative data collected on behalf of the Trust, as well as a range of secondary sources to measure the wellbeing impact of its programmes. To convert these wellbeing impacts into monetary equivalents, the report uses a recognised methodology.
Oxford Economics also assessed the wider economic impact of improvements in individuals’ wellbeing, which consisted of exchequer gains from NHS savings, increased income tax and national insurance contributions.
Read the full report here.
[1] Annual fuel poverty statistics report: 2024
[3] Public opinions and social trends, Great Britain: 17 to 28 January 2024