Herefordshire fuel poverty charity frustrated by wasted funds

Bridie Sullivan from Herefordshire Community Foundation said fuel payments made a huge difference to families

A charity says it is frustrated almost 10% of funds to help people pay fuel bills is squandered through red tape.

Herefordshire Community Foundation gives grants of £500 to help vulnerable people stay warm.

With energy firms refusing to receive remote payments on behalf of customers, the charity must issue vouchers at an admin cost of £43.50, it said.

Energy regulator Ofgem said it was awaiting further information on the issue.

Foundation chairman Frank Myers said: "We really work very, very hard to top up our funds and to have to give almost 10% of it away for what is administration, it's what charities don't try to do, isn't it?"

Bridie Sullivan, chief executive, told BBC Hereford and Worcester: "We would much rather see that money go to where it's needed in fuel grants to vulnerable households."

About 17% of households in Herefordshire are in fuel poverty, which is expected to rise to almost 30% this winter due to the rising cost of gas and electricity.

Chairman Frank Myers said other community foundations faced similar problems

People who do not require winter fuel payments add it to the foundation's Surviving Winter Fund to help the community, but despite donations, the charity says practical restraints can affect recipients in the long run.

It is common, the foundation says, for staff to arrange to meet clients in person when withdrawing the charity's cash, then top up customer cards.

"That's ok when you're only doing two or three a week," said Ms Sullivan. "But when you're doing between 20 and 30 a week, we just can't manage it.

"We can't get enough cash out from the bank and we can't have staff walking across town with a few thousand pounds in their purse."

Vouchers were also "a tradeable commodity" that left vulnerable customers at risk of exploitation, the charity said.

The number of households in fuel poverty in Herefordshire was expected to rise sharply this winter, said the charity

As a result, Mr Myers has approached energy regulator Ofgem to request all energy suppliers accept customers' fuel payments from the foundation directly.

"There are 46 community foundations all wrestling with similar problems," he said. "Quite frankly I got nowhere."

In a statement, Ofgem said: "We are a robust regulator who has the interests of customers as a top priority, and we await to receive a copy of the related correspondence."