Case Study: Test of Change – Access to affordable credit for home heating oil

Poverty Alliance are increasingly concerned about the impact of rising prices. Especially in rural Scotland where households on a low income face a rural premium for essentials like food, energy and transport.  

We spoke to Martin and Jennifer (not real names) who faced an impossible decision last winter between a warm home and their car. In the end they sacrificed their independence and lifeline, and sold their car to afford home heating oil. From their Aberdeenshire home we could see sea birds skimming across the water, and fishing boats coming in and out. It’s a beautiful place. But it is isolated. When Martin and Jennifer  bought the house they discovered a lean-to made of asbestos and brought in tradespeople to replace it. Victims of rogue traders after discovering asbestos, their dream turned into a nightmare. 

Luckily, they called the local Citizen’s Advice Bureau who helped them apply for universal credit and access Home Energy Scotland for help.  

“I have to totally give Citizens Advice 10 out of 10.” 

Although Citizen’s Advice advised Jennifer she was eligible for PIP payment due to a back injury sustained when she worked as a nurse, she wasn’t awarded this after she applied, being told there wasn’t any evidence to support her claim.

“I don't do any heavy carrying. Now I don't do any bending down. I can't use the Hoover. I can't cut my toenails because I can't get down to them. It makes you feel like you're lying. It's, it's like they're saying. ‘Oh, you're making it up. You're a liar’.” 

The impact of having to drastically reduce expenditure has affected every area of their lives. 

“I think because we don't eat that well. Your immune system isn't great and you're not feeling great. It's just because when you're poor, you can't afford better food. You're less motivated to look after yourself. Like brush your teeth properly and things like that. So there are knock on effects to.” 

All through the winter they were trying to manage the amount they spent on energy. They use electricity and home heating oil, as they live off the mains gas grid, like 41% of people who live in Aberdeenshire. 

“Very depressing winter... I was having the boiler on from 4:00 and then come down and do some dinner and then at 6:00 boiler goes off 2 hours. So we'd never sit in the living room. We'd go back to bed. I've got a scarf with a hat and some gloves. And we've got 3 hot water bottles.”

But even that became difficult. After being awarded £650 joint Universal Credit, they had to make some more difficult decisions, and were forced to sell their car. They took it to a local reseller who had told them on the phone they would give them £2200 for it but when they arrived only offered £1400. They used this to pay off bills and fill up their oil tank. 

“By the time I  filled up with the oil, paid the electric, there wasn't a lot left.” 

Filling up the oil tank is a large expense, prices fluctuate and they have a 1,000 litre tank. Planning for how much oil is needed is also very difficult. 

“We put the stick in to check how much oil is in it. And do I do find it a bit scary, you know, cause it's something I've never had to use before.” 

The main implication of losing their car has been further isolation.

“Just feeling very, very low, you know, because you've lost your independence. And we feel so guilty. We feel so guilty that we can't go and see our children and support them. You know, our retirement wasn't supposed to be like this.” 

Whilst both have a bus pass, which they use regularly to get to Iceland and Farmfoods, or a local Men’s Shed, the bus breaks down a lot and getting to medical appointments can also be a challenge, with both having health conditions. A local Food Pantry has been useful to make money go a little further. 

“We went to them and she said, you know, we've got to put you on a waiting list. That was about 6 months ago, and I've more or less forgotten about it. And she said, oh, I'm from the food larder. You know, if you're still interested, we've got a place. So she explained and and gave us the form and everything. And she said you paid £2 a week and you come down and you can choose two items from an orange section and three items from another section and then for £2, if we've got any bread or eggs you can have. So we've recently started to do that. And we found that really helps” 

They have also had some support from a local foodbank. 

“Well, I have had the food bank and the food bank here have been really, really good. They're not judgmental or anything like that. I think is it three times you can access that. They would deliver it, yes, they would, if if you. If you were really desperate, they would.” 

Every spare penny goes on bills. And paying for the oil to heat their home is an ongoing anxiety. 

“ You'd really need to be filling it up at least twice a year.” 

I asked if she shopped around for better deals or if there was a pay it forward scheme or oil club she could join, but it wasn’t something that had been offered. 

Neither of the couple are online, they had never had a computer, and didn’t have internet installed, they found they missed out on a lot of information and support. 

“And if you don't have Internet and it’s never been necessary, how would you know? You wouldn't know. No, you wouldn't know.” 

This couple are sadly not unique. Left behind by systems going online to save money, left to manage on their own. It was clear that they are determined to cope, but it’s not right that are forced to manage by relying on food pantries or staying in bed wearing a hat and gloves. As part of our rural poverty project we are testing a pilot on giving people access to interest free credit to pay for home heating oil, along with advice on how to get best value for money. Jennifer  felt that if she had access to that loan, despite not wanting to get into debt, should would have valued that choice. 

“ I think if it meant we could have kept the car, we would, yeah” 

A fear of getting into debt is a common one, especially when people on low incomes are often only able to access high interest loans and credit. Our pilot project with the Grampian Credit Union is interest free, and designed with the client to ensure repayments are affordable. A  savings element based on affordability is inbuilt to give a small lump sum back to the client once the loan is repaid.  

Jennifer  can see when systems are being designed without her in mind. Everything being online meaning solutions are just beyond her reach. She feels lucky to have been able to phone and speak to Citizen’s Advice Bureau and Home Energy Scotland and form relationships with people who will go the extra mile to help. 

“They just made time for us, to be honest. That’s really important because they, they started asking us questions and that's when she said, you know, you need help. And that was a relief.” 

For more information please contact Anne McCormack, anne.mccormack@povertyalliance.org