Employment, Social Affairs & Inclusion

News 30/06/2022

Four new ESPN Flash Reports on social policy measures to address energy poverty and inflation published

Four new Flash Reports prepared by the European Social Policy Network (ESPN) are now available and provide information on recent social policy measures in Bulgaria, Cyprus, Ireland and the UK to address increasing energy poverty and inflation

Energy poverty is now the foremost challenge for social inclusion policy in Bulgaria

Addressing energy poverty has emerged as one of the main challenges for the Bulgarian social inclusion policy since the new Bulgarian government took office in December 2021. Although energy poverty has been a hot topic on the policy agenda for years, until recently little had been undertaken to address it. The government set itself the target of agreeing a definition of energy poverty and designing tools to alleviate it.

Cyprus: replacing electrical appliances to tackle energy poverty

On 13 December 2021, the Cypriot Government launched a Subsidy Plan for the replacement of electrical appliances in the homes of vulnerable consumers, with a view to compensating for the energy price increases. It is expected that the Plan will cover about 5,000 applications and will significantly help reduce the electricity bill of the supported households. By 5 June 2022, 4,503 applications had already been submitted.

Addressing energy poverty and insecurity in Ireland

In the first four months of 2022, the government has introduced a series of measures in response to the rising costs of living including energy. A cost of living package of measures was introduced on 11 February, and on 13 April a further set of measures targeting energy costs and energy sustainability. The measures target help to individuals and families as well as introducing a national energy security framework. Taken together, they consist of an innovative and broad-ranging mix of income supports, price regulation, consumer protection and governance measures.

Impact of inflation on low-income households in the UK

The UK rate of inflation rose to 9% in April 2022, the highest rate for three decades. A cap on domestic fuel prices also increased in April which will double household’s fuel bills. Initially the government did rather little to respond to what is being called “The Cost-of-Living Crisis”, especially for those with low incomes. However when the energy regulator announced that there would be a further 32% increase in the fuel cap in October 2022 the UK Chancellor announced a package of support costing £37 (€43.7) billion this year.

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