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What Are the Barriers That Prevent Those in Fuel and Water Poverty Accessing Financial Support Mechanisms? (Masters Research Dissertation)

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Rationale

The success of programmes aimed at alleviating fuel and water poverty in the UK have been hampered by low levels of uptake. The combined impact of rising energy prices and economic downturn since 2008 has increased the risk of households experiencing both. While parallels can be observed between fuel poverty and water poverty, the issues remain under researched and a comparative analysis has not occurred. As a result, the potential for transferable learning and combined solutions is largely unknown.





Key research Question

The research sought to identify the reasons behind the limited take up of support mechanisms, comparing and contrasting conceptual and practical aspects of fuel and water poverty, and considering whether this could provide new insights, policy options and solutions in both areas. Particular focus was placed on any structural barriers.



Summary of activity

The research involved a review of policy and academic literature on fuel and water poverty. Data was generated using semi-structured interviews with 21 ‘key informants’ working in the fuel and water poverty arena. The data was analysed using a theoretical model adopted from microeconomics.



Methodologies



Findings

  • There was little uniformity in the discretionary support available across the country, with commitment to support much greater in some suppliers than others. Supplier funded charitable trusts filled the gap to some extent but were facing increasing demand.
  • Three structural barriers were identified – geographical location, supplier choice (for fuel only) and the point at which an individual sought a particular assistance option.
  • A number of mechanisms have significant potential to alleviate fuel and water poverty but are either underutilised (e.g. direct payment schemes, payment matching schemes) or only an option in one utility (the use of social tariffs in the water industry, the use of DWP data in the energy sector)
  • Both industries faced problems developing a sophisticated understanding of their customers.


Recommendations

  • Best practice in one area should be considered for the other – e.g. the water industry’s drive for efficient consumption may be informed by the experience of the energy industry.
  • Further research is needed to investigate a number of the possible solutions; for example, whether expansion of Fuel and Water Direct schemes would be beneficial, or if combined water/fuel support mechanisms would be more effective.


Other themes



Outputs







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