Economists reveal just how hard the energy crisis could hit Lewisham 

By Claudia Lee

Economists have predicted an increase of £1,024 in energy bills per year for the average household in Lewisham. 

Households which consume some of the lowest amounts of energy are still forecast to see an increase in energy bills of £541, despite the current Energy Price Guarantee from the government, economists from the University of Warwick have revealed.

Households with such low energy consumption typically live on a total income of less than £15,000 per year, for these people this shock may cause a drastic decline in real standards of living.

However, the University of Warwick’s research shows that households in Lewisham could save more than £50m combined in energy bills per year if the buildings were properly insulated. 

Thiemo Fetzer, professor of Economics at Warwick University, said: “Within society there is a unique situation right now. 

“For the first time reducing carbon emissions is aligned with an economic incentive for the Government.

“It’s a very powerful message that needs to be heard but politics is intervening.”

One of the main reasons why Lewisham and its population will be so severely affected by the energy crisis is because of decades of underinvestment in the existing building stock. 

Economists estimate that the residential building stock in Lewisham could save up to 30 per cent of its primary energy consumption if buildings were properly insulated. 

The research suggests that the building stock in Lewisham alone could save at least 100,000 tons of CO2 per year. 

The CO2 savings themselves have a monetary value of an estimated £7.8 million per year.

Helping households insulate their properties could permanently save money and support the fight against the climate crisis.

The economists behind this research say it is imperative for local government and local councils to devise ways to ensure that the existing schemes reach households.

Lewisham councillor Louise Krupski said: “Approximately one in four households in Lewisham are now impacted by food poverty or fuel poverty as a result of rising energy bills and the cost of living crisis, yet the response from the Government so far has been completely inadequate. 

“Improving energy efficiency is vital to reducing people’s energy bills in the longer term and tackling the climate emergency. 

“Since 2020, we have secured nearly £4m of funding to carry out retrofit works to council buildings, including our social housing stock, helping residents to save money on their energy bills. 

“We have also supported residents to retrofit their own homes through the Mayor of London’s Warmer Homes scheme, which offers grants to low-income households for energy efficiency measures like wall insulation and draught proofing, and helped over 200 households access retrofit funding from energy suppliers through the Energy Company Obligation initiative.”

Pictured top: Lewisham Council’s headquarters in Catford (Picture: Google Street View)