New research on energy tariffs for vulnerable consumers

Sunset-energy-pic-edited Citizens Advice has published new research on energy tariff options for consumers in vulnerable situations which aims to provide researchers, policy makers and energy market stakeholders with a better understanding of the possible options to ensure that disengaged vulnerable consumers are not penalised by higher tariffs. The research was carried out by the Centre for Sustainable Energy. Read more here.

Previous analysis by Ofgem indicates that poorer consumers could be losing out more than other disadvantaged social groups by not switching energy supplier – the number of poorer ‘sticky’ customers (those who are inactive in the energy market) is 10% higher than average amongst these groups. Based on average savings, consumers on non-fixed tariffs could have saved between £158 and £234 a year (2012-2014) had they switched. So Citizens Advice commissioned this research to investigate options to ensure that vulnerable sticky consumers have access to affordable energy.

Dr Toby Bridgeman, researcher at CSE, led the study. He said: “The research shows that there are several straightforward options that could be introduced to significantly reduce the fuel bills of millions of vulnerable consumers who are currently disadvantaged by the energy market, paying over the odds for their fuel. It would be fantastic if the investigation into the energy market being conducted by the Competition and Markets Authority were to recognise and support some of the recommendations in this report.”

Inclusive service

Citizens Advice have carried out a benchmarking study into British Standard for inclusive service provision (BS 18477). Find the full report, titled Treating consumers fairly, here.

Benchmark study

To accelerate the rate of uptake of the Standard and support companies’ endeavours to become more inclusive, Citizens Advice (Consumer Futures) commissioned independent research consultancy, Opinium Research LLP to conduct a benchmarking study of three organisations that are directly or closely linked to Citizens Advice and provide free help concerning advice and redress for energy consumers:

the Citizens Advice consumer service (the consumer service)
the Ombudsman Service: Energy
the Extra Help Unit.

All three organisations operate towards the end of a consumer journey – they deal with the consequences of decisions (or indecisions) of other organisations or companies.

Objectives

We believe that all companies’ key aims – particularly those companies providing essential goods and services – should include the provision of fair and flexible services to their consumers. We consider that the time has arrived for a transparent cultural shift whereby organisations:

reframe their perspective
change the way they think about consumers and their business
build ‘long-term relationships’ with consumers; ‘earning their trust and then their business’, to become ‘social leaders’.

A more inclusive approach would benefit all consumers. It could particularly benefit those experiencing vulnerability, as well as improving organisations’ own brand, reputation and employee confidence and satisfaction. In turn, this would benefit society and the wider economy.

Conclusions

A demonstrable organisation-wide commitment to providing services that are fair and accessible to all underpinned all the examples of good practice. The experiences of these organisations suggest that developing a broad, flexible understanding of vulnerability and its impact on the consumer is the critical first step in becoming a fair, inclusive and accessible organisation.

But before an organisation can consider how it should respond to vulnerability, it must first ensure its staff can identify it. For the three participating organisations, training played a crucial role in ensuring that staff:

can identify or elicit evidence of vulnerability and
possess the necessary “soft” skills for dealing with consumers in such circumstances.

Age UK report on pensioner poverty

More than a million pensioners are still living in poverty, partly due to their failure to claim benefits, the charity Age UK has claimed. In a new report, it said 1.6m pensioners in the UK are living below the poverty line, and are “floundering” on low incomes.

It conceded that the numbers living in poverty had fallen since 2000, but said progress had now stalled.

The report, called How We Can End Pensioner Poverty, said that many pensioners “had been walking a tightrope in recent years,” as food and utility bills have risen.

But the biggest cause of poverty was that people are missing out on £5.5bn worth of public support.

Findings

The report found that:

1.6m pensioners are missing out on Pension Credit, worth £33 a week
2.2m pensioners are missing out on Council Tax Benefit, worth an average £728 a year
390,000 pensioners could have claimed Housing Benefit, worth £48 a week

Age UK said that many people do not know that they are entitled to benefits; others are too proud or embarrassed to claim.

Ofgem consults on Priority Services

A gas ring burns on a ring at a home in west London, Tuesday, Au Ofgem is reviewing its work on priority services.

Consultation closes 22nd September 2014. Read more here.

Ofgem says:

Gas and electricity are essential services. Providing extra services to people who need them to access the market and stay safe remain critically important. This consultation seeks views on proposals that require suppliers, electricity distribution network operators and gas distribution networks to:

•provide additional non-financial services to energy consumers who are more likely than a typical consumer to experience problems with communication, safety and supply;

•take reasonable steps to identify people who would benefit from these services;

•share consumer information with each other and other utility companies, using vulnerability indicators agreed between them;

•raise awareness of services, including developing a single cross-industry brand; and

•conduct annual independent audits of their performance and publish findings yearly

New research on poverty, pay and employment

_cashpoint-edited The Policy Studies Institute have released new research which examines the relationship between pay, employment and poverty. Here is a link.

PSI says:

A new report, published by the Work Foundation and written by researchers working for Policy Studies Institute and Coventry University, examines the relationship between employment, pay and poverty. It is one of a number of evidence reviews commissioned by the Joseph Rowntree Foundation (JRF) to support its development of an anti-poverty strategy for the UK.

Employment is fundamental to the causes and solutions to poverty, and policy in the UK and elsewhere has focused on promoting employment as the key to tackling poverty. However, this approach now faces a number of challenges, including the increasing prevalence of ‘in-work poverty’, the current climate of fiscal constraint, and low earnings-growth as Britain emerges from recession. This review takes stock of what has been learnt about the relationship between employment, pay and poverty over the past 20 years, and examines the impact of employment-related interventions on poverty reduction.

CCWater publishes research on consumer attitudes

tap-and-water-edited The Consumer Council for Water has published results of their 2013/14 Water Matters tracking research into customers’ views on their water services.

Findings:

Each year we ask customers for their views about the services they receive from their local water companies, and the value for money of those services. This year overall, more than 87% of customers say they are satisfied with the services but less than three quarters ( 69%-71%) consider the services are value for money.

The value of being online

cash pile BT has commissioned independent research to try to establish the social
value of digital inclusion activities in the UK. Find it here.

The value of being online to a new user is £1,064 per annum. This comes from having more confidence, making financial savings online, new job seeking skills and a reduction in social isolation. Other figures for more experienced users are also given.

Charity calls for digital skills shake-up

Leading Digital Skills charity Citizens Online has called for a radical change to the way the 6.8m offline adults in the UK are given skills training and support. Read more here.

In a white paper jointly published with channel shift experts, Trapeze Transformation, they say that current initiatives are unlikely to substantially reduce the Digital Divide and that a new “Systemic” approach is needed.

More details

While the UK as a whole has become one of the most digitally enabled nations in the world, with more than 80 per cent of households having broadband and averaging three internet enabled devices, there remains a persistent minority who have never been online and a larger group who only use the Internet in a limited way.

The research suggests that statutory bodies in local communities, including the local council, Job Centre Plus and Housing Associations, will only succeed in tacking digital exclusion if they collaborate with voluntary sector organisations to build an evidenced based “digital ecosystem”.

ESAN

The Essential Services Access Network