In the News

Energy Update: News Stories on the Cost of Living Crisis

Graham Watson

28th November 2022

Lots happening in the UK energy sector at the moment. Here is a quick potted summary.

Home insulation

The government has appeared to heed criticism of its current energy policy and has announced funding to help insulate some of the least energy efficient homes of the most vulnerable.

That said, the £1bn being allocated doesn't sound like much in the context of a housing stock that is among the least energy efficient in Europe.

BBC News: Insulation: £1bn funding for least efficient homes

Rise in fuel poverty

This Guardian editorial highlights the dramatic rise in fuel poverty and the implications of this for the poorest in society.

UK households have cut energy consumption by 10 per cent

Since energy prices have risen, there's been a 10% decrease in household consumption. It's obviously what you'd expect, and not at all surprising, and given the extent to which prices have increased, it's still suggesting that the demand for energy is price inelastic.

Energy firms warned over hiking direct debits

The government are looking at the energy industry closely at the moment - and in this case, they are concerned about energy companies hiking direct debits unnecessarily and exploiting consumers. As a result, the relevant minister, Grant Shapps, has written to companies reminding them of their obligations in this regard. BBC news reports on this here.

Cost of living crisis hitting UK's most deprived areas hardest

The distributional effects of inflation have never been evenly spread, and this ONS survey suggests that people in the most deprived areas are spending markedly less on food and essentials than the least deprived areas.

This clearly implies that the effects of inflation fall most heavily on the poor, something that we've always been aware of. Read more about this here.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

© 2002-2023 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.