FOR IMMEDIATE RELEASE: June 25, 2004
CONTACT: David Fox (202) 331-2962


WASHINGTON — A recent Missouri study shows that poor families often skip meals and avoid taking prescription medicines so they can afford to heat and cool their homes, demonstrating clearly why Congress should increase funding for the federal Low Income Home Energy Assistance Program, an advocacy group said.

"The research provides graphic evidence of how energy assistance can make a difference in the lives of the poor, disabled and elderly, and it spells out the damaging consequences that can occur when help is not available," said David Fox, communications director for the Campaign for Home Energy Assistance.

"The study is not about dots on a chart. It's about real people — and the risks they take when the high cost of energy becomes too much to bear," he added. "What seems obvious from the findings is that federal assistance doesn't begin to address existing need.

"Congress should dramatically increase funding for the Low Income Home Energy Assistance Program, because lives are at stake. The research proves beyond a doubt that a little help can go a long way."

The study was completed earlier this year for the National Low Income Energy Consortium (NLIEC), a coalition of public, private and nonprofit organizations and individuals committed to reducing energy hardships and crises faced by low-income families. A total of 734 Missouri households participated in the NLIEC survey. Its findings were consistent with those of a similar nationwide study conducted earlier this year by the National Energy Assistance Directors' Association, a member of the Campaign. They also confirm earlier studies in other states showing that low-income people may be forced to use dangerous or unhealthy means if they are not able to pay their utility bills.

An overwhelming majority of the Missouri households surveyed were able to pay their energy bills, despite the fact that more than three-fourths were living at or below the federal poverty level. To do so, however, they were making sacrifices that affect their social, economic, and physical well-being.

"The struggle to pay home energy bills often leads to serious consequences in areas ranging from hunger, health care and housing to safety, education and employment," Fox said. "This is a grim fact both in Missouri and nationwide."

The Missouri study found that:

• Among households with incomes below 50 percent of the federal poverty level, a staggering 38 percent or more of annual household income went for residential energy.
  
• Forty-six percent of the households surveyed skipped meals at least sometimes in order to pay their residential energy bills.
  
• Forty-five percent failed to take prescription medicines in order to pay their energy bills, and 93 percent of those who most often went without medicine also skipped medical appointments.

While most low-income households pay their home energy bills on time, frequently by making financial sacrifices, payment delays can occur and lead to another problem: bad debt for the customer. Since natural gas bills have been rising and are expected to trend even higher, low-income utility customers could face a greater burden in the future — making additional funding for energy assistance more crucial.

The federal Low Income Home Energy Assistance Program is a targeted block grant program that helps our nation's most vulnerable households — those with elderly, young children and disabled family members — cover the costs of home energy.

"LIHEAP can and does make a difference for these families as they face difficult choices: to heat their homes or eat regular meals, to take medicines or pay the energy bill, to make a utility payment or pay for repairs on the car needed to get to work each day," Fox said. "Unfortunately, the help provided through federal energy assistance does not go far enough."

The federal program was funded at only about $2 billion for the current fiscal year, providing assistance to only about 4.6 million households — less than 15 percent of the more than 34.6 million households eligible for help.

Advocates for the poor are urging Congress to increase LIHEAP funding significantly and have endorsed calls by the Northeast-Midwest Senate Coalition and Northeast-Midwest Congressional Coalition for funding at $3.4 billion per year.

"That won't provide enough money to help everyone," Fox said. "But it's a good start."

The Campaign for Home Energy Assistance is a broad-based coalition of advocates for the poor, consumer advocates and utilities that support LIHEAP. Among its members are the American Association of Blacks in Energy, American Gas Association, American Public Human Services Association, American Public Power Association, Catholic Charities, Edison Electric Institute, Lutheran Services in America, National Association for State Community Services Programs, National Energy Assistance Directors' Association, National Fuel Funds Network, Natural Gas Supply Association, National Rural Electric Cooperative Association and The Salvation Army.

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