Fact Sheet: Energy Costs and Support for Disabled People

Fact Sheet: Energy Costs and Support for Disabled People

What is the issue we asked members about?

Disability Equality Scotland (DES) were asked by Scottish Government to assist them do research concerning energy costs and how these impact on disabled consumers, in advance of a meeting between the Government and Energy Suppliers.

As well as the impact of prices, the government wanted to find out:

• what support people need;
• their experiences using a Smart Meter and;
• what disabled people thought about a social tariff being introduced.

A social tariff is a discounted energy tariff that is targeted towards those facing higher energy costs, such as those on a fixed income or those who incur additional costs by way of their health or impairments. The Scottish Government are planning to discuss the introduction of a social tariff at their meeting with energy suppliers.

DES carried out a survey of our members in August 2024. The total sample size was 91.

 What are the key things we found out?

• 63% of respondent
• s use independent living equipment or lifesaving equipment.
• Disabled people overwhelmingly support changes to energy bills through a reform process to reduce costs and tariff changes.
• Our members are very supportive of the introduction of a social tariff and that there needs to be specific eligibility criteria for disabled people. When applying for this tariff a simple application process would be welcomed.
• On Standing Charges our members would support significant reform, including reduced standing charges – to their complete abolition. Consideration should be given to ensure that the standing charge in any social tariff is also fair and proportionate.

What did our members tell us?

Most of the data that we gathered was qualitative in nature. We have, as far as possible, used a coding frame to identify any common themes or items that emerged. For some questions we were able to use quantitative data (numbers) to answer our questions.

Independent living equipment and energy use

The first few questions in our survey sought to find out:

• what independent living equipment/ lifesaving equipment people used;
• what type of energy mix they used in their home and;
• what time of day people think they used the most energy.

When asked if they

• used independent living equipment, or lifesaving equipment 63% said they did, whereas 37% said they did not. If someone said they needed said equipment, we asked what type of equipment they used. We used a coding approach to identify which items people used. The most common piece of equipment was either a wheelchair or a powerchair, with 36 respondents. 22 said that they had an electric bed or specialised bed and 12 said they had a hoist to assist them. Other items of independent living equipment/ lifesaving equipment people said they used included: crutches/sticks (3); a nebulizer (5); a stairlift (3); a Scooter/ Mobility Scooter (5) and; a trolley (2). 5 respondents also told us that they used a fridge to store medical equipment or medicine they needed.

Our third question focused on whether there was a time of day when disabled people had higher energy use. There was no clear consensus on a

•  specific time of day, but a majority of respondents said they had higher energy use during the day rather than at nighttime.

Given the different tariffs which exist for electricity and gas, we wanted to learn whether there was a specific fuel type which respondents used and any mix of electricity and gas. The results are shown in graph 1; a majority said they used around half electricity and half gas.

Graph 1: Energy Use by kind of energy.

 

Support needed by disabled people in winter from their energy company

In terms of support this winter, disabled people said that assistance with their bills would be helpful (18 comments) and that tariff reform would also help people to pay their bills (15 comments). Disabled people also expressed considerable concern about the decision to remove the winter fuel payment from older people by the Government and the impact of this. Other support could include: a social tariff (4); reduction in prices (7); and support for people on benefits (5).

Quotes from members included:

“Don’t take the fuel payment away.”

“Disabled people should get a social tariff.”

“Cheaper bills. Being on disability benefits means that we can’t afford to be paying hundreds of pounds a month on utilities. At the moment I am paying 3 quarters of my monthly income on my utility direct debit.”

“The rates are just too high for energy and gas. I have to be really careful I don’t go over on either so I sit with extra blankets and jumpers during the winter”

 

Accessing support from current suppliers

When contacting their energy suppliers, members overwhelming prefer to be contacted via email (62 comments). Other methods of communication included: telephone (19); text (10); letter (8) and; post (5).

At present 31% said they had accessed support from their supplier to help with energy bills, compared to 69% who had not. People said they had heard about support via: email; Citizens Advice; the winter fuel allowance or warm home discount and; their local authority.

When asked what energy suppliers could do to better support disabled people, the most common groupings of responses related to lowering of bills for disabled people. When coding these ideas, the breakdown was as follows: tariff reform (27); changes in cost (15);  a discount (8); standing charge reform (6); a social tariff (6); a specific disabled people’s tariff (4); price reductions (5) and; rebates (2).

Members overwhelmingly feel that energy bills are too high and when coupled with the number of people who use independent living equipment, this will increase their bills further. A few members said that the profits made by energy companies were huge and that these could be used to subsidise lower tariffs for customers. The issue of high tariffs and prices were the main area of concern for respondents and that a reform of this would be pertinent to make sure bills become affordable.

The following quotes demonstrate a number of proposals members have to improve support from energy companies:

“Set a lower tariff for people with disabilities, use equipment, the vulnerable, the elderly, families – use some of these profits and obscene bonuses to actually help the people that are in need.”

“Lower the price and the standing charges need reduced.”

“Better understanding of the needs of disabled individuals and better discounted rates.”

“Have a different rate throughout the year rather than a discount one month in the year, especially for winter.”

“They could offer rebates and cut the tariff for those who have a disabled person in the property. It isn’t just for equipment, but more the fact that disabled people are far more confined to their homes as a direct result of disability.”

Disability Equality Scotland agree with our members that a substantive discussion is required to improve the energy market in the interests of disabled consumers. A focus on affordability, alongside the recognition of the additional costs incurred by disabled consumers – due to increased usage – should be a key part of any tariff reform, so that people are able to pay their bills without being penalised due to their impairments.

 

Smart Meter Usage

 62% of respondents said that they have a smart meter, compared to 38% who did not. When asked if they had experienced any issues with their smart meter:

• 19 respondents (38%) said they had not experienced any issues;
• 8% said they weren’t able to get a smart meter;
• all other respondents reported an issue of some kind, including 14% who said their smart meter didn’t work.

A further 14% reported that they experienced difficulties with their connection due to Wi-Fi issues, or the connection was intermittent. Due to such connection difficulties, it can lead to disabled people having to receive estimated bills – rather than actual bills – which during the cost-of-living crisis could make it harder for respondents to make ends meet.

Most concerningly, 14% of respondents informed us that they either needed their smart meter replaced, or there were issues with their supplier.

 

Views of standing charges

Overall, all respondents did not have a positive view of Standing Charges.

A thematic analysis of responses found the most common descriptor of current standing charges were that they were “too high.” The second most common response was to describe the current rate of charges as “ridiculous” or “outrageous.”

A number of respondents said that standing charges should be abolished or scrapped. Others commented that the levels of standing charges should be reduced, especially in light of the high profits generated by suppliers due to increased oil and gas prices.

Common quotes from members included:

“Every business is out to make a profit and has every right to charge. However, when I see the profits made by the energy companies, it’s time they reduced charges.”

“They are far too high and unjustified.”

“They are far too expensive. They need to be lowered. It is also not right that the standing charges are more if you are on a pay as you go meters.”

There was a consensus that abolition of standing charges would be preferred by all.

Failing this, members were of the view that a reform of standing charges – via a reduction or limitation on how they should be applied – was required. A positive step at a minimum would be to reduce the amount levied in standing charge through reform of the price cap – although outright abolition or phasing out of said charges would significantly help disabled people when paying their energy bills.

 

Social Tariff Views

 Members who responded had an overall positive view of the introduction of a social tariff with only 3 respondents giving a negative view.

When coding, 18 respondents were grouped as being supportive, 14 indicating it was a good idea, 6 saying it was “needed,” with another 6 people thinking a social tariff would bring down costs.

One member summed this up well when they told us:

“This would help so many people. I use a social tariff for my broadband and it saves me about £10 every month. Saving on my energy bills would really help as being disabled is expensive.”

Of the responses, 16 comments had concerns around eligibility and making sure that those who would benefit from a social tariff were able to do so.  Due to members’ previous experiences, there is a concern around a complex application process to prove eligibility.

Members told us:

“Could be good but the system must be clear and sympathetic. No pages of questions or lots of proof of eligibility.”

“It’s a good idea and should be open to anyone on a low income AND people on disability benefits.”

“I would be open for a social tariff if it included pensioners and those on PIP, the discounts always go to people on another qualifying benefit, if you are disabled you are disabled.”

Our members believe that a social tariff should be open to:

• people on lower incomes;
• disabled people and;
• older people (especially pensioners).

Ensuring the tariff is accessible for those who need it should also come with reform of energy bills. In particular – given our members views on standing charges – we agree that any social tariff must also include a social standing charge.

Some members did say that they would like more information about a social tariff and how it would work. We would suggest a public information campaign should be developed by the energy suppliers to assist with this.

Further information

For further information on this, or other fact sheets, please contact Disability Equality Scotland on:

t: 0141 370 0968          e: research@disabilityequlity.scot