Financial turmoil sees informal carers forking out an extra £200 per year for energy

• **Informal carers’ annual energy bills are on average £200 higher than other bill payers – an increase of 14% since last year**

• Over a third (35%) of informal carers have struggled to pay their energy bills at some stage and bill worries have affected the wellbeing of two in five (40%)

• Around half (49%) of informal carers also struggle to balance responsibilities at home alongside a full-time job, adding to the financial strain

• Only a quarter (25%) of informal carers have heard of the vital support provided by the Priority Services Register and just 15% have signed up to it

• Uswitch.com urges carers to sign up to the Priority Services Register and calls on the Government to simplify access to support for vulnerable households

• During Carers Week 2019 anyone calling Uswitch.com on 0800 6888 557 will be offered advice about the Priority Services Register and Warm Home Discount

Britain’s community of 6.5 million informal carers, who help to look after vulnerable friends or family members with little or no monetary support, are facing financial turmoil when it comes to their energy bills, according to new data from Uswitch.com, the price comparison and switching service.

The findings, released during Carers Week 2019, have revealed that on average informal carers who live with the person they care for pay £200 more for energy each year than other bill payers. This is an increase of 14% compared to 2018, following an unprecedented year of price hikes and the introduction of Ofgem’s energy price cap.

Balancing the demands of caring and working, many informal carers end up burning through more gas and electricity while having less income to cover it, leading to a stressful situation when it comes to their bills. Indeed, around half (49%) of informal carers say they find it difficult to juggle a full-time job alongside their responsibilities at home – up from 45% last year.

The needs of the people they look after are a major factor in informal carers’ above average energy bills, with nearly three quarters (71%) having to keep the heating on for longer than they would otherwise, which inevitably increases the size of the bill.

Energy bills have the biggest impact on informal carers’ household expenses, with over a third (35%) having struggled to pay them at some stage. However, other bills have also taken their toll, including council tax (28%) and water (23%). Worryingly, the percentage of informal carers that have been pushed into debt as a direct result of costly utility bills has almost tripled compared to last year.

Unsurprisingly, this causes anxiety for informal carers, with the worry of how to pay household bills affecting their wellbeing (40%), keeping them awake at night (35%) and even leading them to seek medical advice or support (22%). And as if the pressure of looking after a dependent person is not enough, 35% of carers admit that the added concern of bills has caused strain between family members.

Respite from some of this tension is not always an option either, as holidays (46%) and socialising (44%) are the first things informal carers sacrifice in order to ensure enough money is available to cover the bills. Other more serious measures have also been adopted: 21% have at times gone without or cut back on the heating – potentially to the detriment of their health or the person they care for – and 24% have trimmed the weekly food shop. 35% have dipped into their savings to pay off their bills, while others have either paid on a credit card (33%) or turned to family and friends for a loan (28%).

Less than a third of informal carers receive the Winter Fuel Allowance (32%) of between £100 and £300 – which is only available to people aged 65 and over – or Carers Allowance (30%) of up to £66.15 a week (although receipt of the Carers Allowance can affect other benefits). Uswitch.com believes that more targeted support for vulnerable households is needed, as over a quarter (28%) of informal carers receive no government benefits or additional support whatsoever.

The Government made a step in the right direction last year, when it changed rules which meant more energy suppliers will offer the £140 Warm Home Discount (WHD) by 2021. But this has only had a marginal effect on informal carers so far. 17% of informal carers now get the WHD, compared with 14% in 2018. Uswitch believes it should be extended to cover all energy suppliers, no matter how small. In addition, eligibility should be standardised through auto-enrolment, with the “core” and “broader” groups who receive the rebate merged in order to simplify the process and make eligibility decisions more straightforward.

Furthermore, customers in vulnerable situations – including informal carers – need to be encouraged to sign up to the Priority Services Register (PSR). The PSR is a free service provided by suppliers and network operators for people with additional needs, offering benefits such as advance notice of planned power cuts, priority support in an emergency, or help with communication about bills. Currently, only a quarter (25%) of informal carers are aware of the service, and just 15% are signed up to it. In line with the recommendations of the recent report from the Commission for Customers in Vulnerable Circumstances, there needs to be coordinated action across the retail energy market to better identify consumers who may benefit from the PSR, increase the sign-up rate, and ensure they remain registered when they switch supplier.

Although only 28% of informal carers are on poor-value Standard Variable Tariffs compared to around 50% of the population nationally, informal carers only look to switch energy supplier once every three years on average. While SVT prices are now limited by the price cap, better value deals are available which are up to £381 cheaper. Worryingly, the cap has led to a false sense of security among some informal carers, with nearly one in ten (9%) saying that its introduction has made them less likely to switch. Uswitch.com is urging these households not to pay more than they need and compare energy deals, to ensure that they are on the best plan for their circumstances.

Rik Smith, energy expert at Uswitch.com, says: “Uswitch is proud to support Carers Week again this year. Informal carers often find themselves in a lose/lose situation: their commitment to the loved ones they care for can make it hard to maintain full time employment, yet also demands higher energy use. The pressure they are under to look after vulnerable friends or family while also trying to balance the bills can be unbearable and the cost of energy is placing a particular strain on them.

“Uswitch believes Government should simplify access to the Warm Home Discount scheme so energy customers don’t have to struggle with complicated eligibility criteria to get the support they need. Likewise, we’re urging informal carers to sign up to the Priority Services Register through their supplier, so they can be assured of priority support in an emergency as well as other practical help managing their energy account. While shopping around for cheaper deals will always help to reduce the monthly bills, some households need additional support – that’s why we’re offering more information for anyone who calls our free helpline on 0800 6888 557.”

Supplier support for vulnerable customers

You can find out how to get help paying your bills in our Uswitch guide, while many energy suppliers also offer support to vulnerable customers in other ways.

Customers who have a serious medical condition, who are in a vulnerable situation, or who have additional communication needs are eligible for help through their energy supplier’s Priority Services Register. Either they or their carer can register in order to access services such as advance notification of a planned power cut, or priority help in an emergency such as an interruption to supply. To register, you or your carer simply need to contact your energy supplier. You can find more details in our Uswitch guide.

British Gas runs a programme to support customers with dementia and offers those requiring extra support the opportunity to join its Priority Services Register. The British Gas Energy Trust also helps clear energy debts for customers who are struggling and pays for new energy efficient appliances. British Gas has also recently announced a change to its carers policy for employees. It now offers up to ten days paid leave for carers (in addition to holiday).

E.ON’s eligible customers can be added to its Priority Services Register to receive additional support such as gas safety checks, bills in different formats, bespoke energy efficiency advice and access to its Extra Support Team. This is a specialist team which assists customers who are struggling to pay and those who need additional support due to complex needs or circumstances. The team works with various partners to offer customers free independent debt advice, benefits eligibility checks and access to various grants. E.ON also operates its own hardship fund which has assisted thousands of eligible customers by clearing their energy debt and which also provides new energy efficient appliances and boilers.

EDF Energy has a dedicated team that works with customers who may need extra help due to being in a vulnerable situation. EDF offers a Priority Services Register which helps eligible customers to access additional services including different bill formats, gas safety checks and a direct number into a specialist team for help. EDF also work with external partners and can make referrals to a range of support funds and organisations such as IncomeMax, SHINE & Citizens Advice Plymouth (who provide a UK wide service) which help customers with meaningful and practical support based on their individual circumstances.

npower’s Macmillan Fund offers bespoke support to people living with cancer by capping energy bills and writing off debt. Its Health Through Warmth scheme gives assistance to vulnerable people with long term health conditions and inadequate heating or insulation – they don’t even have to be npower customers to access Health Through Warmth support. And the npower Fuel Bank® aims to remove the stark choice between heating or eating. It issues energy vouchers for foodbank users with prepayment meters – many who have gone without heat or electricity to save money.

ScottishPower runs a hardship fund to help customers who may have difficulties paying their bills.

SSE customers can access additional support by signing up to the Priority Services Register and the supplier also offers a SignVideo service that allows hearing impaired customers the chance to speak to an agent in real time via an interpreter. SSE works with StepChange Debt Charity to provide customers with independent debt advice. SSE has worked with the University of Stirling to provide dementia training to staff, giving them the skills required to provide extra support to customers with dementia and their families. SSE was one of the first suppliers to receive BSI accreditation for inclusive service provision, demonstrating its teams have the skills required to identify vulnerability in whatever form it takes and adapt the service they provide to suit the customer’s individual needs.

Shell Energy‘s customers can receive alerts about their best deals and have access to a helpline where they can receive energy efficiency advice. Shell Energy also offers another helpline dedicated to helping customers going through financial hardship. Through this service, it can arrange payment plans and connect financially vulnerable customers with Step Change – a debt charity that can offer further independent support and advice. Shell also offers its vulnerable customers the following:

• Customers can appoint a third party to receive bills and communications

• Free gas safety check (if customers own their property)

• Password for its engineers to use when visiting the customer’s home to guarantee the safety of our vulnerable customers

• Pedestrian meter read if neither the customer, or anyone else, can read the meter

• Moving a Prepayment Meter to enable the customer to access it safely

• Specialist bill format for visually or hearing impaired consumers – this includes Braille, large print or audio tape

• Help to enable customers with a visual or hearing impairment to query a bill/Statement of account

• Fuel Direct (where applicable, customers can opt to have their bills paid directly out of their benefits payments

• Warm Home Discount (where applicable)

• Customers who are struggling to make their payments but are not eligible for the Warm Home Discount we can arrange a payment plan

• The option of having a Prepayment Meter fitted

• SMART meter installation

• The provision of Energy Efficiency Advice

Ovo and Boost (a pre-payment only provider) run an Energy Fund which helps customers who are behind on their energy payments and need help getting out of debt, as well as providing a Priority Services Register. Boost also offers a Winter Wallet, helping customers plan ahead for the cold winter months by saving a little extra money each month, and having the chance to win prizes/rewards. This gives PAYG customers the opportunity to save and build credit to use over the Winter Months.

Top tips for households to keeps energy costs down

Read your meter: Uswitch research found that more than a fifth of households don’t submit regular energy meter readings to their supplier, risking inaccurate bills. Once they provided a reading, two thirds of Brits found that they were owed £161 on average.

Bleed your radiators: Trapped air in radiators stops them working efficiently. If there are cold spots on your radiators, particularly at the top, it’s a sign they need bleeding. This releases the air and ensures your heating system is working to its full potential.

Lower the temperature: around 90% of a washing machine’s energy expenditure is spent on heating the water, so the lower the temperature, the more money you save. And if it’s safe to do so, turning your thermostat down by 1 degree Celsius can save you as much as £85 per year.

Standby savings: Switch off the tech; leaving televisions and games consoles on permanent standby costs £45-80 a year and we waste nearly £29m per year in this country by leaving our phone chargers switched on even though we’re not charging our phones.

Go green: Switch the energy saving settings on for your TV, computer, games consoles and any other devices – and make sure you turn them off properly when you’re not using them. They’ll use a third less energy this way. Three quarters of us (76%) leave appliances on standby, wasting a whopping £227m per year.

Water pressure: A high-pressure power shower is a great luxury to have but you’d be surprised how much hot water they use – sometimes even more than a bath.

Energy saving: Lighting can account for as much as 20% of your electricity bill. Installing five low energy light bulbs will cost about £15 and could save you as much as £32 a year. LED bulbs are the most energy efficient – they use up to 90% less energy, and can last up to 50,000 hours (that’s over five and a half years if left on continuously).

Insulation: Insulating your home is one of the best ways to reduce your energy bills and make your house warmer and more comfortable. There are grants available from some energy suppliers under a scheme called the Energy Companies Obligation (ECO). You must meet certain criteria to qualify and more information is available from suppliers’ websites.

Chimneys: Unused chimneys are another common way for heat to escape. If you still use your chimney, then a removable chimney balloon can be used to prevent excess heat being lost at times you don’t have the fire on. If you don’t use your chimney at all, consider having it capped by a professional.

Windows: Draught-proofing strips work well around windows. Draughts can also emerge from cracks between the window frames and the surrounding walls. If this is the case, try using either sealant or putty to close up the gaps.

Doors: Draught-proofing strips are also useful between doors and their frames, both internally as well as externally. For gaps between the bottom of the door and the floor, you can buy a special ‘brush’ or hinged flap draught excluder.

Timed extractor fan: If you have an extractor fan in your bathroom or kitchen without a timer, you run the risk of leaving it on unnecessarily, which can chill your whole house. A timed extractor fan will shut off automatically and remove this risk.

A radiator shelf: A shelf positioned just above a radiator helps to throw heat forward into the room, rather than letting it rise to the ceiling. Most hardware and DIY shops will stock purpose-made shelves which clip easily onto most radiators.

Disused vents: If you upgrade your boiler, it’s likely to have a balanced flue, meaning you no longer need an air-brick in an external wall with the boiler. If you seal up any disused vents you can stop valuable heat from escaping.

Curtains: Curtains are great at preventing heat loss. You can buy heavy-duty curtains, or thermal lining for your existing ones, for extra insulation. But try not to let your curtains hang over any radiators, as this can stop the heat from warming the room.

Switch: Switching energy supplier can save you almost £400 per year but to make sure you don’t run the risk of losing your Warm Home Discount you can call the Uswitch call centre on 0800 6888 557 and we’ll check the details for you.

Carers Week 2019 is helping carers remain healthy and connected with their communities. For more information and advice visit www.carersweek.org

Find out how you could save over £1,000 a year with Uswitch here.