ENERGY CAPS LEAVE STUDENTS IN THE COLD

BY MOLLIE JESSON, ESTELLE MOORES, AMY BRITTEN

UNIVERSITY STUDENTS FACE a daily struggle between staying warm and keeping bills low as they navigate the harsh reality of energy caps and damp housing conditions. The main issue is the cost of energy; the surge in prices has been the leading cause of the cost-of-living crisis.

Maintenance loans are set to increase by just 2.8% next year, meaning that, on average, they are falling short of living costs by £439 per month, leaving students feeling the pinch more than ever.

Fair-usage Policies

Typically, in York, student housing is arranged around 6 months prior to the letting start date. This means that many landlords had not accounted for the rising costs of gas and electricity prior to contracts being decided. For example, in the Winter of 2021, when most contracts will have been signed, the energy cap was approximately £1277.

Now, only a year later, the energy cap has increased to roughly £3000, according to Ofgem.

One of the main concerns for landlords is that they cannot afford the rentals with bills included for the price originally agreed. With gas prices having increased by 128.9%, and electricity prices increasing by 65.4% by December 2022, many landlords have struggled to cope, and have felt as though implementing a fair-usage policy is the only option.

As part of a ‘bills included’ package, the terms of the contract state that instead of increasing the prices that they charge in light of energy price increases, the landlord can implement a fair-usage policy; a cap or allowance based, not on units of energy consumed, but on the sum of money spent.

Keen to reduce this prospective cost as much as possible, many households across the UK have limited their heating usage, having it on for just 2 hours a day in some of the coldest winter months.

The 2022 National Student Accommodation Survey, conducted by Save the Student, found that 26% of students are dealing with damp, a figure which will no doubt continue to grow as it becomes increasingly difficult for students to properly heat their houses. The health risks of living in conditions such as these are well documented, with it having a significant effect on the respiratory and immune systems, both of which we have experienced ourselves.

Students have reported being huddled tightly under blankets, trying to work and stay motivated in freezing cold rooms, their fingers numb and heavy, stinging as they press against the keypad, and battling persistent headaches and chesty coughs caused by the mould growing on the walls.

The energy caps may save universities and private landlords money, but they come at a high cost to the health and wellbeing of students.

So, What Can Be Done?

Having a more open channel of communication with landlords about what exactly can be expected in regard to bills can make things easier.

The University of York is offering a £150 non-repayable per-household energy grant to students who are struggling with bills, however this is only eligible for those whose bills are not included in their rent, and so is not available for those who may be struggling after exceeding their capped price.

The University also offers repayable emergency loans for those struggling in a more general financial sense, though these are repayable within a month and only amount to £96 per week for a maximum of 2 weeks.

All things considered, it doesn’t look like things are going to get better for students any time soon. Ultimately, the negative effects that students have experienced from the implementation of fair-usage policies are reflective of the wider economic issues in the UK. Thus, it is difficult to say exactly who is to blame and, simultaneously, who is responsible for providing a solution. As maintenance loans fall in real value and students continue to struggle, it will likely take a collective effort from universities, property owners and the government to help those battling these conditions.