Irwell Valley Housing Secures Funding For 'Fuel Poor'

Low-income families on high tariff fuel pre-payment meters are stuck in a financial trap as they look to save money and opt for cheaper, alternative methods of paying their energy bills.

But for hundreds of residents with Irwell Valley Housing based in Manchester, that is about to change after the Association secured funding from Scottish Power Energy People Trust to help tenants move from pre-payment meters to direct debit to take advantage of discounted rates.

Nationally, over a quarter of prepayment customers are "fuel poor", which means they spend over 10 per cent of their household income on gas and electricity. The burden is only increased by the high tariffs forced on them by pre-payment meters, but customers on low income face financial obstacles if they try to set up direct debit payment arrangements.

Steve Parlby, Irwell Valley’s Environmental Special Projects Officer secured the funding from Scottish Power Energy People Trust. He says:

“The pre-payment meter has its advantages, but it is more expensive as there’s only standard rate available and no discounts are applied for using electronic payment methods. With cheaper rates, direct debit is an attractive option. However, some of our residents don’t have a good credit rating or the £100 deposit required to demonstrate their ability to pay”

The majority of the funding - £25,000 - will be used to pay the deposit for the resident to enable them to take advantage of the cheaper rates and discounts. The deposit will then be recycled to reach more residents in difficulty.

Residents will be selected on a means basis to ensure the best use of the funds available. The funding from Scottish Power is a first for the social housing sector.