Switching household energy tariffs

Research study by (In partnership)A Movable Feast,

Age UK, KC social council, Nucleus and London South Bank University

Objectives • Provide independent advice to 150 vulnerable

households (older, BME , Single parents)

• To assess whether independent advice tariff has a better outcome

• To explore residents ambivalence to changing tariffs ( inc barriers)

• To identify any particular relevant themes ( >75 years, BME , single parent

The study

• 151 households – 50 in each group across 3 boroughs

• Groups represented people spending large % of their

income in heating

• Av household income £230

• Virtually nil savings

• 62% had debts

The benefits

• Saving ( £20 – £150 pa)

• green tariffs, better customer care

• Taking control – esp iterative budgeting

Research methodology

Participative

Action Researc

h

•Researchers work with communities

•Aims to create knowledge whilst trying to change what is being investigated

•Seeks to understand and improve world by changing it

Local commun

ity groups

•Geographical spread

•Have existing clients in key groups

•Trusted

Recruiting

researchers

•Existing volunteers

•Peers•Aware of client group needs

Training

•Basic Debt advice

•Energy tariffs inc website / phone / printed

•Benefit maximisation

Process (Raised

as a part other work

•Interview on possible benefits

•Look at client’s priorities

•Joined with clients to look at best comparison method for client

•Follow up meeting after 2 weeks to look at progress

Findings

Better results with advice – esp young parents. BMEs after consultation with friends / community. Older people needed a lot more time to consider the prospect of cahnging provider.

Main • barriers - ambivalence /time/ other priorities • past experience or scepticism of benefits • too complex

Implications/findings• Better information / easier process; Market too complex • Savings need to be correctly assessed and individualised• Groups who are most likely to suffer fuel poverty ( complex

lives) are most likely to benefit from F2F advice + follow up• comparisons sites are too complex for key user groups • Needs to be a process ( time – esp older people)• Price is important to some users , customer care to others,

trust in not being the most expensive etc • Loyalty plays a big part for older users• Intervention need to be tailored for different sections

( vulnerable groups: disabled, time poor, older etc )

Recommendations

• Commission independent services to support energy tariff switching ( reduce fuel poverty)

• Prioritise funding for provision of independent advice for vulnerable consumers to make choices

• Work closely with community groups – build on relationships and reach: added value link

• consider awareness raising campaign• Consider Action research as a useful tool in working

with communities to affect change