New analysis from Birmingham Labour reveals a staggering 200,000 families in the city will have fallen into fuel poverty by 1st April 2023, according to National Energy Action’s calculation.
It estimates that out of the 443,703 households in Birmingham, around 203,000 would spend at least 10% of their household income on gas and electricity bills once the price cap rises in April.
That’s a shocking 45% of households in the city. In four constituencies – Birmingham Erdington, Birmingham Hodge Hill, Birmingham Ladywood and Birmingham Yardley – more than 50% of the households in the city are estimated to be in fuel poverty.
This is a much larger figure than seen in the official figures released earlier this month, suggesting that 19.2% of households in Birmingham are in fuel poverty. The National Energy Action figure uses a model based on the impacts of external factors such as inflation, energy price rises and benefits.
Historically, Birmingham has a much higher rate of fuel poverty than the national average: in 2020 fuel poverty was estimated at 21.8%. The national average in 2020 was around 14%.
Publishing the figures, John Cotton, Cabinet Member for Social Justice, Community Safety and Equalities said,
“Too many families in Birmingham are struggling to make ends meet – the last thing they need is an energy price hike this April. That’s why Labour is calling on ministers to bring in a proper windfall tax on the bumper profits of energy giants to fund support for bill payers and stop the cap from rising.
“But we have got to do much more to get this country moving again. That’s why Keir Starmer has set out his 5 missions to build a better Britain – including securing the highest sustained growth in the G7, to help families in places like Birmingham feel better off.”
The news comes as Labour calls on the Chancellor to bring in a proper windfall tax on energy giants to fund package of support for energy bills including new measure to pass on savings to households immediately, by stopping the energy price cap going up from April.
Labour leader, Keir Starmer has set out his 5 Missions for a Better Britain – including securing the highest sustained growth in the G7 – with good jobs and productivity growth in every part of the country making everyone, not just a few, better off.