Britain's poorest suffer most under privatised utilities: NCC report

A report from the National Consumer Council (NCC) has claimed to have uncovered evidence of "a hidden Britain" where millions of people struggle to afford water, energy and a home phone services.

The report, published today, found that across these 'life-line' services, the poor pay more, "putting an unbearable strain on their already-stretched incomes".

More than three million people are struggling with energy bills, 4.7million are in debt to their water company and more than one million have had their phone cut off, the NCC says. And every winter an extra 20,000 to 50,000 people die because their homes aren’t warm enough – one of the highest incidences of cold-related winter deaths in Europe.

Not only do the 13 million poorest pay more for their household utility supplies because of unfair tariffs – up to £182 a year more for gas, for example – but they can be shut out from making savings by switching suppliers. Last year, 23,000 households in England and Wales were disconnected from their energy supplies. An estimated further 1.4 million disconnected themselves, for fear of running up bills they couldn’t pay.

NCC’s report argues that a warm and well-lit home, with cooking, washing and bathing facilities, a safe water supply, reliable sewerage system and a link to the outside world and help, are "absolutely essential for anyone to function effectively in society".

Deirdre Hutton, NCC chairman, said: “The current system fails the poorest because of inappropriate regulation of the privatised utility companies, an incoherent, inequitable and largely ineffective patchwork of ad hoc initiatives, and an income support system that is out of step with reality. What’s more, it is not at all clear that competition can be relied on to deliver affordable services for low-income households.

“We are calling for a new policy agenda for household utility services – an agenda that would make access to affordable ‘life line’ services a fundamental right.

Unaffordable water bills are now a "real worry" for almost five million people, says the NCC, and even though companies can no longer cut-off water supplies to those who cannot pay their bills, water debt is rising fast.

“The price paid for unaffordable utility bills - in terms of human misery and the burden on our health and social care services - far outweighs the cost of solving the problem. I hope the government will consider NCC’s agenda for action as a serious contribution to the poverty debate," said Ms Hutton.

(gmcg)