An MHK has warned some islanders could face a ‘Dickensian winter’ if the government does not do more to help with rising heating fuel costs.
Ayre and Michael MHK Stephen Broad said: “In my constituency there are families that are having to choose between turning the lights on, cooking a meal or heating their homes.
“We are getting dangerously close to a Dickensian novel for some families in the Isle of Man. Can the minister offer them some real assistance, or are we really going to enter a Dickensian winter where keeping warm becomes a luxury, rather than a basic necessity?”
Treasury Minister Michael Crowe said the picture painted by Broad was “one that none of us in this House would like to see”.
He added: “I am sure there are benefits and support available from many government departments, including my own in terms of Social Security, to help people in the greatest need.”
He added that a winter fuel payment for people struggling on benefits was something that government could consider.
It came after Crowe said it would be difficult to justify specific measures for heating fuel cost support, ahead of more general measures.
Cheaper Than Gas
Broad had tabled a House of Keys question asking what steps the Treasury had taken to help people facing rising heating fuel costs.
Crowe said Treasury had been monitoring fuel costs for a number of years and this had intensified since the conflict in the Middle East.
“Disruption to energy supplies has led to sharp increases in the retail cost of heating oil in the Isle of Man as these prices are regularly updated when new shipments come in,” he said.
“On the other hand, the prices of electricity and natural gas do not reflect large increases in the wholesale price of gas due to forward purchasing strategies.”
He said that figures in September showed heating oil was between 11.26p and11.7p per kwh. Natural gas was 12.05p and the standard direct electricity heating cost stood at 33.42p.
“Even with a substantial increase in unit price, heating oil is still lower in price than natural gas and electricity,” he said.
Policy Principles
He added: “Treasury needs to consider the principles that should guide policymaking around energy shocks.
“In this case, fairness and proportionality are important points. It is challenging to justify support for heating oil customers when prices are comparable or lower than those that have been borne by users of other fuels for many years.”
Crowe said one scheme designed to support households currently using all types of heating sources was the Heat Wise Home Scheme.
“This scheme is set to begin in the next couple of months, providing grants and loans to eligible Manx households for the installation of air source heat pumps, and retrofitting other areas to improve energy efficiency,” he said.
“Together, these measures are expected to provide cost savings and stability to energy bills, therefore increasing household protection against international energy shocks.”
Support
He added that there had been a reduction in the price of oil this week and he hoped there would be “some benefit coming through” to residents from that.
“My department, and I am sure others, would certainly be keen to support any residents who find themselves in that level of difficulty.”
Glenfaba and Peel MHK Katryna Baptist called for a review of benefits rates and eligibility thresholds.
Crowe said rates and criteria would be reviewed as part of process ahead of the February Budget.
Winter Fuel Payment
Broad asked: “Can the minister tell those people, the vulnerable, the low-paid that are struggling households in the island, will he agree to a winter fuel payment for these people on supplementary benefits and pensions?”
The minister said a “strategic co-ordination group of senior officers” in government set up to monitor fuel prices and other risks.
Crowe added: “We will certainly monitor the situation and should it become necessary, yes, I am sure government would respond.”
You can listen to the full discussion here: