Congress must Act to Protect Struggling Families Pay High Energy Bills
NEADA’s analysis of rising home energy and gasoline prices by income found that for low and moderate income families (those in the bottom 40% of households) the increases are substantial and could force many to choose between paying their energy bills and essential goods and services.
Lower income Families Hit the Hardest by Increases in Energy Prices: For the lowest 20 percent of households by income, the average combined energy burden increased from 27% of income in 2020 to 33.3% in 2021–a difference of over $1,000. Based on today’s release of consumer price data, we are projecting that their energy burden could increase to 37.9% of income in 2022. For moderate income households, those with incomes between 20% and 40% of households by income, the average combined energy burden increased from 13.6% of income in 2020 to 16.7% of income in 2021–a difference of over $1,300 – and we are projecting that their energy burden could increase to 19% of income in 2022.
There are practical limits to what a household can do to reduce gasoline and home energy consumption, but there are actions the federal government can take to reduce pressure of rising prices on struggling families. While there is no federal program designed to help families pay rising gasoline prices, there is a program to help with home energy bills, the Low Income Home Energy Assistance Program (LIHEAP). NEADA sent a letter to the congressional leadership on March 18, 2022 calling for an additional $5 billion for LIHEAP to help low income families pay rising home energy bills.