Energy Guarantee Research Note
Issued: September 2024
Summary
Findings from the 2024 MESL update report demonstrate the significant variation in energy costs at different Building Energy Ratings (BERs). Because Fuel Allowance is set at a fixed rate, it does not have the ability to adequately respond to the energy needs of low-income households that are at risk of energy poverty.
The MESL Research proposes an alternative policy response in the form of an Energy Guarantee, first outlined in the Working Paper ‘The cost of adequately heating the home’.
This Research Note builds on the proposal set out in the initial Working Paper, assessing the potential impact of the proposed model on low-income household types that are currently eligible for Fuel Allowance, and also to those in receipt of short-term social welfare support (e.g., Jobseekers under 12 months) and to Working Family Payment recipients.